PM Viksit Bharat Rozgar Yojana (PM-VBRY)

Source: PIB

Context: The PM Viksit Bharat Rozgar Yojana (PM-VBRY) will come into effect from 1st August 2025 to incentivize large-scale job creation, replacing the Employment Linked Incentive (ELI) Scheme.

About PM Viksit Bharat Rozgar Yojana (PM-VBRY):

• What it is? A national employment-linked incentive scheme to promote job creation in formal sectors, especially manufacturing, as part of the Viksit Bharat initiative.

• A national employment-linked incentive scheme to promote job creation in formal sectors, especially manufacturing, as part of the Viksit Bharat initiative.

• Launch Date: Effective from 1st August 2025

• Administered By: Ministry of Labour and Employment

• Total Outlay: ₹99,446 crore

• Implementation Period: 2025–2027

• Target: Over 3.5 crore new jobs, including 1.92 crore first-time workers

• Objective:

• To promote inclusive and sustainable job creation. To incentivize employers for hiring new workers, especially in manufacturing. To support first-time employees entering the formal workforce

• To promote inclusive and sustainable job creation.

• To incentivize employers for hiring new workers, especially in manufacturing.

• To support first-time employees entering the formal workforce

• Key Features of PM-VBRY: Part A: Incentive for First-Time Employees

• Part A: Incentive for First-Time Employees

• Eligibility: New EPFO-registered employees with monthly salaries up to ₹1 lakh. Incentive: One-month EPF wage (up to ₹15,000), paid in two instalments: 1st instalment: After 6 months of service 2nd instalment: After 12 months and completion of financial literacy training Saving Habit Promotion: Part of the incentive will be locked in a deposit account for future withdrawal.

• Eligibility: New EPFO-registered employees with monthly salaries up to ₹1 lakh.

• Incentive: One-month EPF wage (up to ₹15,000), paid in two instalments: 1st instalment: After 6 months of service 2nd instalment: After 12 months and completion of financial literacy training

• 1st instalment: After 6 months of service

• 2nd instalment: After 12 months and completion of financial literacy training

• Saving Habit Promotion: Part of the incentive will be locked in a deposit account for future withdrawal.

• Part B: Incentive for Employers

• Focus Sector: All sectors, with special focus on manufacturing Employer Eligibility: EPFO-registered entities hiring: 2 or more additional employees (if existing staff <50) 5 or more (if staff ≥50) Wage-based Incentive (per employee per month): ₹1,000 for wages ≤ ₹10,000 ₹2,000 for ₹10,001–₹20,000 ₹3,000 for ₹20,001–₹1,00,000 Tenure: 2 years for all sectors; extended to 4 years for manufacturing

• Focus Sector: All sectors, with special focus on manufacturing

• Employer Eligibility: EPFO-registered entities hiring: 2 or more additional employees (if existing staff <50) 5 or more (if staff ≥50)

• 2 or more additional employees (if existing staff <50)

• 5 or more (if staff ≥50)

• Wage-based Incentive (per employee per month): ₹1,000 for wages ≤ ₹10,000 ₹2,000 for ₹10,001–₹20,000 ₹3,000 for ₹20,001–₹1,00,000

• ₹1,000 for wages ≤ ₹10,000

• ₹2,000 for ₹10,001–₹20,000

• ₹3,000 for ₹20,001–₹1,00,000

• Tenure: 2 years for all sectors; extended to 4 years for manufacturing

• Payment Mechanism:

• First-Time Employees: Paid via DBT using Aadhar Bridge Payment System (ABPS). Employers: Direct payment to PAN-linked bank accounts.

• First-Time Employees: Paid via DBT using Aadhar Bridge Payment System (ABPS).

• Employers: Direct payment to PAN-linked bank accounts.