What Is PM Viksit Bharat Rozgar Yojana (PM-VBRY)?
The PM Viksit Bharat Rozgar Yojana (PM-VBRY) is a transformative employment-linked incentive scheme launched by the Government of India on August 1, 2025, under the broader Viksit Bharat Mission. Its goal is to generate 3.5 crore formal jobs over two years and promote financial inclusion among first-time employees.
This scheme replaces the earlier Employment Linked Incentive (ELI) Scheme and brings enhanced benefits for both employers and employees.
Key Highlights
| Feature | Details |
|---|---|
| Launch Date | August 1, 2025 |
| Duration | 2 years (till July 31, 2027) |
| Budget Allocation | ₹99,446 Crore |
| Target Jobs | 3.5 Crore |
| Focus Sector | All sectors, with a special boost to manufacturing |
| Administered By | EPFO & Ministry of Labour and Employment |
| Official Website | EPFO, India |
Benefits for Employees
Eligibility
- First-time employees registered with EPFO
- Monthly salary up to ₹1 lakh
Incentive Structure
- One-month EPF wage (max ₹15,000) as an incentive
- Paid in two instalments:
- 1st instalment: After 6 months of continuous employment
- 2nd installment: After 12 months + completion of Financial Literacy Program
Payment Method
- Direct Benefit Transfer (DBT) via Aadhaar Bridge Payment System (ABPS)
- A portion of the incentive will be deposited into a savings instrument to encourage long-term financial planning
Benefits for Employers
Eligibility
- EPFO-registered establishments
- Must hire additional employees earning up to ₹1 lakh/month
Minimum Hiring Requirement
| Establishment Size | Minimum New Hires Required |
|---|---|
| Less than 50 employees | At least 2 new employees |
| 50 or more employees | At least 5 new employees |
Incentive Structure
| Employee EPF Wage Range | Incentive to Employer (per employee/month) |
|---|---|
| Up to ₹10,000 | ₹1,000 |
| More than ₹10,000 to ₹20,000 | ₹2,000 |
| More than ₹20,000 up to ₹1,00,000 | ₹3,000 |
- For employees with EPF wage up to ₹10,000, the incentive is up to ₹1,000/month.
- For EPF wage ₹10,001 – ₹20,000, the incentive is ₹2,000/month.
- For EPF wage above ₹20,000 (up to salary of ₹1,00,000/month), the incentive is ₹3,000/month.
This distinction is crucial because the EPF wage can be less than the gross salary if certain allowances are excluded as per Provident Fund rules. Employers should calculate the incentive based on the EPF wage reported in their monthly ECR filings on the EPFO portal.
Special Boost for Manufacturing Sector
- Incentives extended for 3rd and 4th years for manufacturing companies
Payment Method
- Direct transfer to PAN-linked bank accounts of employers
Financial Literacy Program
The Financial Literacy Program is a mandatory component for employees to receive the second instalment of their incentive under PM-VBRY. It aims to equip young workers with essential financial knowledge and promote responsible money management.
Objectives
- Encourage saving habits
- Educate on EPF, insurance, and banking
- Promote digital payments and financial inclusion
- Reduce reliance on informal credit systems
What Employees Will Learn
- Budgeting & expense tracking
- EPF, ESI, and social security schemes
- Banking basics, UPI, and digital payments
- Savings instruments (FDs, PPF, NPS)
- Insurance and risk management
- Tax basics and salary structuring
Completion Criteria
- Must be completed after 12 months of employment
- Delivered via online modules, EPFO workshops, or partner institutions
- Certification or acknowledgement may be required
Link to Incentive
| Installment | Condition | Amount | Linked to Financial Literacy |
|---|---|---|---|
| 1st | 6 months of employment | Up to ₹15,000 (EPF wage) | ❌ No |
| 2nd | 12 months + program completion | Remaining amount | ✅ Yes |
Key Takeaways for HR Professionals
- Ensure your organisation is EPFO-compliant
- Strategically plan hiring to maximise incentives
- Educate new employees about the financial literacy requirement
- Track employment duration and program completion for compliance
Final Thoughts
The PM-VBRY scheme is a landmark initiative that not only incentivises formal employment but also fosters financial empowerment among India’s youth. For HR professionals, employers, and job seekers alike, understanding and leveraging this scheme can lead to long-term growth, stability, and a more financially literate workforce.
FAQs for PM-VBRY (PM Viksit Bharat Rozgar Yojana)
1. If I change jobs before completing 6 or 12 months, will I still get the PM-VBRY benefits?
No. To receive the first instalment, you must complete six months of continuous service with the same employer. To receive the second instalment, you must complete twelve months of uninterrupted service with the same employer and also pass the mandatory financial literacy course. If you change jobs or have a break in service before these milestones, your eligibility resets.
2. Can employees get PM-VBRY benefits if they have worked before but were never registered with EPFO?
Yes. You can still qualify as a “first-time formal employee” under PM-VBRY if you have never been registered with the Employees’ Provident Fund Organisation (EPFO) before, even if you have worked elsewhere. Your PF registration (UAN generation) must happen for the first time under your current employment.
3. Is PM-VBRY applicable to all sectors?
Yes. The scheme covers all sectors across India. However, the manufacturing sector receives extended employer incentives—up to 4 years instead of the standard 2 years—to encourage large-scale job creation in that industry.
4. Do employees need to fill out a special form to avail of PM-VBRY benefits?
No. There is no separate form or application process for employees. Your eligibility is automatically activated when your employer creates your first EPF account (UAN) under the scheme.
For employers, however, correct reporting of new hires through EPFO’s Electronic Challan-cum-Return (ECR) and completing the one-time online registration on the designated portal is required.
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