PM Viksit Bharat Rozgar Yojana to start August 1, aims at 3.5 crore new jobs
New Delhi: The Ministry of Labour and Employment on Friday announced that the employment-linked incentive scheme, PM Viksit Bharat Rozgar Yojana (PM-VBRY), will come into effect from August 1, 2025. The scheme, approved earlier by the Union Cabinet chaired by Prime Minister Narendra Modi, aims to encourage large-scale job creation across the country.
With a financial outlay of ₹99,446 crore, the scheme is projected to generate more than 3.5 crore jobs over a two-year period, from August 1, 2025, to July 31, 2027. Of these, around 1.92 crore positions are expected to be filled by first-time entrants into the workforce. The government stated that the scheme is in line with the broader objectives of the Viksit Bharat initiative, underlining its commitment to inclusive and sustainable employment growth.
The scheme adopts a dual-structured incentive model comprising Part A for first-time employees and Part B for employers. It places a particular emphasis on boosting job creation in the manufacturing sector, while remaining open to all industries.
Under Part A, benefits will be extended to individuals who are newly registered with the Employees' Provident Fund Organisation (EPFO). Eligible employees, those earning up to ₹1 lakh per month, will receive an incentive equivalent to one month’s EPF wage, capped at ₹15,000. This will be paid in 2 installments: the first after 6 months of continuous employment, and the second after 12 months, subject to completion of a financial literacy programme. To encourage long-term saving, a portion of the incentive will be deposited in a savings instrument or account and made accessible at a later date.
Part B of the scheme is directed at employers. Those hiring additional employees earning up to ₹1 lakh per month will be eligible for a government incentive of up to ₹3,000 per employee per month, for a period of 2 years. In the case of the manufacturing sector, these incentives will be extended to the third and fourth years as well.
To qualify, EPFO-registered establishments with fewer than 50 employees must hire at least 2 additional workers, while those with 50 or more employees must add a minimum of 5 new workers. The new recruits must remain employed for at least 6 months to make themselves eligible for the incentive.
All payments under Part A will be made through Direct Benefit Transfer (DBT) using the Aadhaar Bridge Payment System (ABPS), ensuring direct disbursement to employees. Employer incentives under Part B will be transferred to their PAN-linked bank accounts.
The Ministry said the scheme forms a vital component of India’s strategy for employment-led economic growth, aiming to accelerate formal job creation, expand social security, and foster long-term financial inclusion across the workforce.
PTI inputs