India's workforce is a catalyst of its journey towards Viksit Bharat 2047. Quality employment is central to inclusive growth. The Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY) supports this vision by encouraging first-time employment and incentivising employers to create new formal jobs. Through an EPFO-linked, technology-driven framework, the scheme promotes workforce formalisation, expands social security coverage and strengthens financial security for workers. By combining employment generation, financial inclusion, transparent implementation, PM-VBRY is building a skilled, secure, future-ready workforce to support India's long-term economic growth.

The Promise of India's Demographic Dividend

India's young and dynamic workforce is one of its greatest strengths. It offers a unique opportunity to drive economic growth and deliverthe vision of Viksit Bharat 2047. Millions of young people enter the labour market each year. Expanding formal employment with social security is essential to transform this demographic advantage into sustained and inclusive development.

The Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY) reinforces the national priority by encouraging first-time employment and supporting job creation. Through a transparent, Employees' Provident Fund Organisation (EPFO)- administrated framework, it strengthens workforce formalisation while creating opportunities for both employees and employers.

Turning Opportunity into Employment

Announced in August 2025, PM-VBRY is being implemented over a two-year period from 1 August 2025 to 31 July 2027, with an outlay of ₹99,446 crore. On 1 August 2026, the scheme completes one year of implementation, marking an important milestone in India's efforts to expand formal employment and social security coverage.

PM-VBRY aims to generate employment for over 3.5 crore people, including 1.92 crore first-time employees. The scheme encourages young people to enter the organised workforce through EPFO registration. It also expands social security coverage across various sectors, particularly labour-intensive manufacturing. It complements the National Manufacturing Mission by promoting employment in new and expanding industries.

A Win-Win for Employees and Employers

At the heart of PM-VBRY is a two-part incentive framework, with distinct provisions for employees and employers.

Part A: Incentive to First-Time Employees

• First-time employees earning up to ₹1,00,000 per month are eligible for this part.
• They receive a one-time incentive equivalent to one month's EPF wage, capped at ₹15,000.

• The incentive is paid in two instalments. The first is paid after six months of service and the second after twelve months of continuous service, following completion of a financial literacy programme.
• A portion of the incentive is invested in a designated savings instrument, encouraging financial security and savings. It can be withdrawn by the employee at a later date.

Part B: Support to Employers

• Employers are eligible for incentives for employees with salaries of up to ₹1,00,000 per month.
• Employers receive up to ₹3,000 per month for two years for every eligible additional employee retained for at least six months.
• The support lowers hiring costs and encourages sustained employment generation.
• For the manufacturing sector, incentives are extended to the third and fourth years as well, owing to high employment generation potential.

PMVBRY’s IMPACT

Within its first year, PM-VBRY has strengthened workforce formalisation by encouraging first-time hiring and expanding social security coverage. The scheme is helping bring more workers into the organised sector while encouraging employers to create new jobs across industries.

• Over 72 lakh first-time employees have joined the formal workforce since August 2025.
• Nearly 30% of beneficiaries are women, promoting greater female participation in formal employment.
• More than 15 lakh beneficiaries have already received employment-linked incentives under the scheme.
• By linking employment with EPFO registration and direct benefit transfers, PM-VBRY is strengthening India's organised labour market and creating a more secure talent pool.

PM-VBRY’s Digital Governance and Efficient Delivery

PM-VBRY leverages digital technologies to ensure transparent, efficient and accountable implementation. The scheme enables seamless verification, benefits transfer and real-time monitoring.

• The scheme is implemented through a fully digital, EPFO-linked platform, ensuring seamless verification and efficient benefit delivery.
• It uses Aadhaar-based authentication, Universal Account Numbers (UANs), and regular Electronic Challan-cum-Return (ECR) filings. Incentives are available only after the UAN is authenticated through Face Authentication Technology on the UMANG App. This ensures compliance while expanding social security coverage.
• Incentives are transferred directly to Aadhaar-linked bank accounts through Direct Benefit Transfer (DBT), enhancing transparency and accountability.
• A PM-VBRY portal facilitates end-to-end scheme implementation and provides real-time monitoring of beneficiaries and sector-wise progress.

Awareness about the scheme and its provisions is promoted through extensive outreach efforts across the country. Cross-Functional Teams comprising officials from EPFO, Employees' State Insurance Corporation (ESIC), and the Chief Labour Commissioner (CLC) support these efforts by increasing participation at the grassroots level.

Empowering India's Workforce

As India advances towards sustained and inclusive growth, quality employment will remain central to improving livelihoods and economic resilience. By encouraging first-time employment and supporting job creation, PM-VBRY is strengthening India's formal employment ecosystem and expanding social security coverage. As the scheme completes its first year, it reaffirms the Government's commitment to unlocking the full potential of India's demographic dividend.

 

References

Ministry of Labour and Employment

https://pmvbry.epfindia.gov.in/

https://pmvbry.epfindia.gov.in/pmvbry-scheme/

https://pmvbry.epfindia.gov.in/wp-content/themes/epfo-child/assets/images/PMVBRY-Final.pdf

https://sansad.in/getFile/annex/270/AU1536_GzvOyc.pdf?source=pqars

https://sansad.in/getFile/loksabhaquestions/annex/187/AU1392_4I7wJ2.pdf?source=pqals

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2275419&reg=48&lang=2

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2148270&reg=48&lang=2

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2275547&reg=48&lang=2

Others

http://pmindia.gov.in/hi/news_updates/%E0%A4%AA%E0%A5%8D%E0%A4%B0%E0%A4%A7%E0%A4%BE%E0%A4%A8%E0%A4%AE%E0%A4%82%E0%A4%A4%E0%A5%8D%E0%A4%B0%E0%A5%80-%E0%A4%B6%E0%A5%8D%E0%A4%B0%E0%A5%80-%E0%A4%A8%E0%A4%B0%E0%A5%87%E0%A4%A8%E0%A5%8D-1154/

https://www.youtube.com/shorts/UMSneQm7H90

https://www.youtube.com/watch?v=GQt75TsuzBI&list=PLNLJCvbS5aqS4h_BsqW9UboJ2N9a5RGKk&index=11

Click here to see pdf

PIB Research

 

 

(रिलीज़ आईडी: 2292862) आगंतुक पटल : 474