The Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) 2025, announced by Prime Minister Narendra Modi on August 15, 2025, is a ₹99,446 crore employment scheme running from August 1, 2025 to July 31, 2027, aimed at creating over 3.5 crore formal jobs, including 1.92 crore for first-time workers.
The scheme provides up to ₹15,000 cash incentive for new employees and ₹3,000 per month per hire for employers, with benefits linked to job retention, EPFO registration, and financial literacy, making it a cornerstone of India’s Viksit Bharat 2047 vision.
| Particulars | Details |
|---|---|
| Scheme Name | Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) |
| Announced By | Prime Minister Narendra Modi |
| Announcement Date | 15th August 2025 (Independence Day Speech) |
| Scheme Duration | 1st August 2025 – 31st July 2027 (2 years) |
| Total Outlay | ₹99,446 crore |
| Jobs Target | 3.5 crore new formal jobs |
| First-Time Employee Target | 1.92 crore jobs |
| Implementing Body | Ministry of Labour & Employment, EPFO |
| Employee Benefit | One-time cash incentive up to ₹15,000 (paid in 2 instalments) |
| Employer Benefit | Incentive up to ₹3,000/month per new hire |
| Employer Incentive Duration | 2 years (all sectors), 4 years (manufacturing) |
| Employee Eligibility | First-time EPFO member, wage ≤ ₹1 lakh/month, Aadhaar-linked UAN |
| Employer Eligibility | EPFO-registered firm; must hire ≥2 new employees (if <50 staff) or ≥5 (if 50+ staff) |
| Disbursement Mode | Direct Benefit Transfer (DBT) to Aadhaar/PAN-linked bank accounts |
| Unique Feature | Includes financial literacy module + savings account deposit for retention |
India’s Biggest Job Scheme 2025 – PM-VBRY Explained
India’s employment sector is witnessing a landmark reform with the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY). Announced by Prime Minister Narendra Modi on Independence Day, August 15, 2025, this ₹99,446 crore initiative will run from August 1, 2025 to July 31, 2027, creating over 3.5 crore formal jobs, including 1.92 crore opportunities for first-time workers. By directly rewarding both employees and employers, PM-VBRY is set to redefine the future of work in India.
Why PM-VBRY Was Introduced
Every decade, India adds millions of young people to its workforce, yet formal employment growth has often lagged. Informal jobs dominate, leaving workers without Provident Fund, social security, or long-term stability. Previous schemes like the Aatmanirbhar Bharat Rozgar Yojana (ABRY) provided wage subsidies but lacked a strong focus on financial literacy and job retention.
PM-VBRY addresses these gaps with a dual-part incentive model, making formal jobs attractive to youth while lowering hiring costs for employers. This timing is critical: India is moving towards its Viksit Bharat 2047 vision, and employment is the backbone of that growth story.
Key Features and Benefits of PM-VBRY
The scheme is uniquely structured to balance short-term job creation with long-term employment sustainability. Unlike one-off cash handouts, PM-VBRY ties incentives to job retention milestones (6 and 12 months) and incorporates a financial literacy module to cultivate disciplined savings.
Employers also benefit with reduced wage burden, especially in labor-intensive industries, encouraging expansion and workforce regularization. Together, these incentives are designed to build a more formal, skilled, and geographically distributed workforce.
Part A: Incentives for First-Time Employees
Starting a first formal job can be overwhelming—navigating payroll deductions, Provident Fund accounts, and compliance can feel like uncharted territory. PM-VBRY’s Part A provides not just financial relief but also the assurance that new workers are entering the system with institutional support.
Eligibility for First-Time Employees
- Must join an EPFO-registered establishment on or after August 1, 2025.
- Gross monthly wage must be ₹1 lakh or less.
- Should not have been a member of EPFO or Exempted Trust before scheme launch.
- Must generate a Universal Account Number (UAN) linked with Aadhaar (UAN can be created via UMANG app with face authentication).
This ensures benefits reach genuine first-time workers and not job hoppers.
Financial Benefits for Employees
- ✅ One-time incentive up to ₹15,000 (equal to one month’s EPF wage).
- ✅ Paid in two instalments:
- First instalment: after 6 months of continuous employment.
- Second instalment: after 12 months + completion of a financial literacy module.
- A portion of the second instalment goes into a dedicated savings account, encouraging long-term financial stability.
👉 This structure not only motivates employees to stay longer but also cultivates responsible money management—a first for Indian employment schemes.
Part B: Incentives for Employers
For businesses, hiring often comes with additional costs—compliance, payroll taxes, training expenses. By reducing these burdens, PM-VBRY makes expanding the workforce more viable.
Eligibility for Employers
- Must be EPFO-registered.
- Hiring threshold:
- Firms with <50 employees → must hire at least 2 new workers.
- Firms with ≥50 employees → must hire at least 5 new workers.
- New hires must meet the Part A employee eligibility criteria.
This ensures the scheme benefits both small firms and large enterprises.
Financial Benefits for Employers
- ✅ Up to ₹3,000/month per new hire.
- ✅ Duration: 2 years (all sectors) and 4 years (manufacturing).
- ✅ Incentives are tiered by employee wages, ensuring proportional benefits.
👉 This is especially transformative for manufacturing, a sector expected to drive India’s job-led economic growth under “Make in India” and “Viksit Bharat 2047”.
Application & Implementation Process
To avoid bureaucratic delays, PM-VBRY is fully digitally enabled, ensuring transparent, Aadhaar-linked DBT transfers.
For Employees
- No application required.
- Once a first-time PF account is created and Aadhaar is linked, eligibility is auto-verified.
- Incentive is credited directly to the Aadhaar-linked bank account.
For Employers
- Must obtain an EPFO code via Shram Suvidha Portal.
- Register on EPFO employer login.
- File ECR (Electronic Challan cum Return) with timely PF contributions.
- Incentives credited into company’s PAN-linked bank account every 6 months.
👉 This paperless approach ensures speed, compliance, and trust between government, employers, and employees.
Expected Impact of PM-VBRY on India’s Economy
The scheme is expected to generate:
- 3.5 crore formal jobs in 2 years.
- 1.92 crore first-time workers entering formal workforce.
- Boost in manufacturing sector competitiveness due to extended incentives.
- Wider spread of formal jobs in Tier-2 and Tier-3 cities, reducing metro congestion.
Its multiplier effect will expand indirect employment—when new workers spend, it boosts demand in allied sectors like transport, logistics, housing, and retail.
The financial literacy module is a long-term reform, ensuring young workers become savers, investors, and financially disciplined citizens.
Challenges & Future Outlook
No scheme is without challenges. PM-VBRY may face:
- Awareness gaps among small businesses.
- Risk of “ghost employees” being added just for subsidies.
- Need for strict EPFO monitoring to prevent misuse.
However, with India’s digital ecosystem (Aadhaar, UAN, DBT, EPFO portals), these risks can be minimized. If executed effectively, PM-VBRY will set a global example of employment-linked welfare.
FAQs on PM-VBRY 2025
What is Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) 2025?
PM-VBRY 2025 is a ₹99,446 crore employment scheme announced by Prime Minister Narendra Modi on 15th August 2025, designed to create 3.5 crore new formal jobs over two years, with 1.92 crore opportunities for first-time workers.
When will PM-VBRY 2025 be implemented?
The scheme will run from 1st August 2025 to 31st July 2027, covering a total duration of two years.
Who is implementing the PM-VBRY scheme?
The scheme is administered by the Ministry of Labour and Employment and implemented through the Employees’ Provident Fund Organisation (EPFO).
What are the main objectives of PM-VBRY 2025?
The objectives are to generate new formal jobs, provide financial support to first-time employees, reduce hiring costs for employers, boost manufacturing, and encourage financial literacy among youth.
What benefits do employees get under PM-VBRY?
Eligible employees receive a one-time cash incentive of up to ₹15,000, paid in two instalments linked to job retention and completion of a financial literacy module.
When will employees receive the incentive money?
The first instalment is given after six months of continuous service, and the second instalment is provided after twelve months plus successful completion of a financial literacy program.
Is there a salary limit for employees to qualify?
Yes, employees must have a gross monthly wage of ₹1 lakh or less to be eligible under the scheme.
Who qualifies as a first-time employee under PM-VBRY?
A first-time employee is someone who has never been an EPFO or Exempted Trust member before 1st August 2025 and is entering the formal workforce for the first time.
What is the role of Aadhaar and UAN in PM-VBRY?
Employees must have a Universal Account Number (UAN) linked with Aadhaar, which can be created using Aadhaar-based face authentication on the UMANG app, to ensure seamless verification and benefit transfer.
Do employees need to apply separately for the scheme?
No, employees do not need to apply. Once a new PF account is created and linked with Aadhaar, eligibility is automatically verified and benefits are credited via DBT.
What benefits are offered to employers under PM-VBRY?
Employers receive up to ₹3,000 per month per new hire as an incentive to reduce wage costs and encourage hiring.
For how long do employers get incentives under PM-VBRY?
Employers receive the incentive for two years across most sectors, while manufacturing firms get an extended benefit for up to four years.
What are the eligibility requirements for employers?
Employers must be registered with EPFO. Small firms with fewer than 50 employees must hire at least 2 new workers, while larger firms with 50 or more employees must hire at least 5.
How can employers register for PM-VBRY benefits?
Employers must obtain an EPFO code from the Shram Suvidha Portal, register on the EPFO employer login, and file monthly ECR with timely PF contributions.
How are employer incentives disbursed?
Employer incentives are credited directly to the company’s PAN-linked bank account every six months through Direct Benefit Transfer (DBT).
How does PM-VBRY promote job retention?
By splitting employee incentives into two instalments and linking the second instalment to job continuation and financial literacy training, the scheme ensures stability in the workforce.
What is the significance of the financial literacy module?
The module helps employees understand savings, investments, and responsible financial behavior, with part of the incentive being deposited in a designated savings account for future security.
How many jobs will PM-VBRY create?
The scheme is expected to create 3.5 crore new jobs in the formal sector, with 1.92 crore of them specifically targeted at first-time workers.
Which sectors are expected to benefit the most?
Labor-intensive sectors such as manufacturing, retail, logistics, and services are expected to benefit significantly, with manufacturing receiving extended support for four years.
How does PM-VBRY differ from previous employment schemes?
Unlike earlier schemes like Aatmanirbhar Bharat Rozgar Yojana, PM-VBRY combines direct cash incentives, job retention measures, and a financial literacy program, making it more comprehensive.
Can existing EPFO members claim benefits under PM-VBRY?
No, only first-time EPFO entrants are eligible for employee incentives. Employers, however, may claim benefits for hiring such new workers.
How will PM-VBRY impact India’s economy?
It will lower hiring costs for businesses, make formal jobs attractive for youth, boost financial inclusion, and create a multiplier effect in allied industries, driving India closer to its Viksit Bharat 2047 vision.
Is there a geographic focus in PM-VBRY implementation?
Yes, the scheme aims to encourage hiring in Tier-2 and Tier-3 cities, leading to a more dispersed and inclusive job market across India.
What safeguards exist to prevent misuse of the scheme?
The use of Aadhaar-linked UAN, EPFO monitoring, and direct benefit transfers minimize risks of duplication, ghost employees, or fraudulent claims.
Can part-time or contractual employees avail benefits?
Only employees who meet the wage and EPFO registration criteria are eligible; purely contractual or informal workers outside the EPFO framework are not covered.
How will PM-VBRY contribute to India’s Viksit Bharat 2047 goal?
By formalizing jobs, promoting savings, strengthening manufacturing, and empowering youth with financial literacy, PM-VBRY lays a strong foundation for a developed India by 2047.
The Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) is not just another employment scheme—it is India’s largest, digitally driven job creation mission. With ₹99,446 crore investment, clear eligibility rules, Aadhaar-linked DBT, and a strong focus on job retention and financial literacy, it promises to reshape the labor market.
“The Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) 2025 is India’s biggest job scheme, set to create 3.5 crore formal jobs with ₹99,446 crore outlay. Employees can earn up to ₹15,000 incentives, while employers get ₹3,000/month per new hire. Learn eligibility, benefits, and application process.”
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