The Government of India is set to roll out the PM Viksit Bharat Rozgar Yojana (PM-VBRY) on 1st August 2025, marking a major step toward accelerating employment generation and fostering inclusive economic growth across the country. Approved earlier by the Union Cabinet chaired by Prime Minister Shri Narendra Modi, the scheme was previously known as the Employment Linked Incentive (ELI) Scheme and has now been renamed in alignment with the Government’s broader Viksit Bharat vision.
With a robust budgetary outlay of ₹99,446 crore, the PM-VBRY aims to create over 3.5 crore new jobs over two years, with a special emphasis on bringing first-time workers into the formal employment sector. As many as 1.92 crore beneficiaries are expected to be first-time entrants into the workforce. The scheme will incentivise job creation between 1st August 2025 and 31st July 2027, providing both financial support and policy impetus to employers and employees alike.
The PM-VBRY is structured into two components—Part A focuses on first-time employees, while Part B extends support to employers creating new jobs, particularly in the manufacturing sector.
Part A: Incentive to First-Time Employees
This component targets individuals registering for the first time with the Employees’ Provident Fund Organisation (EPFO). Eligible employees earning up to ₹1 lakh per month will receive an incentive equivalent to one month’s EPF wage, disbursed in two instalments. The first instalment will be released after six months of continuous employment, and the second after twelve months, provided the employee also completes a financial literacy programme. To encourage long-term financial planning, a portion of the incentive will be held in a savings or deposit account, accessible at a later date.
Part B: Support to Employers
Aimed at accelerating employment generation across sectors, this part offers financial incentives to employers who hire new employees and retain them for a sustained period. Employers will receive up to ₹3,000 per month per new employee for two years, based on the EPF wage slab of the additional employee. In the manufacturing sector, the benefit will be extended for an additional two years (third and fourth year), to promote industrial employment growth.
Eligibility conditions require establishments registered with EPFO to hire a minimum of two additional employees (if they currently employ fewer than 50) or five additional employees (for establishments with 50 or more workers). These additional hires must remain employed for at least six months to qualify.
Incentive Structure for Employers:
- Employees with EPF wage up to ₹10,000 – incentive up to ₹1,000
- ₹10,001 to ₹20,000 – incentive of ₹2,000
- ₹20,001 to ₹1,00,000 – incentive of ₹3,000
Employees earning below ₹10,000 will receive proportional incentives.
Seamless Digital Disbursement Mechanism
All payments to first-time employees under Part A will be processed via Direct Benefit Transfer (DBT) through the Aadhar Bridge Payment System (ABPS). Employers will receive incentives directly into PAN-linked bank accounts, ensuring transparency and ease of access.
The PM-VBRY signals a decisive push by the Government to enable employment-led growth, improve labour market formalisation, and boost the manufacturing sector. It complements India’s ambition of becoming a developed economy by empowering both the workforce and the industries that drive national productivity.