PM-VBRY to come into effect from 1 August 2025

• 26 Jul 2025
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The Employment Linked Incentive (ELI) Scheme, which the Union Cabinet approved on 1 July 2025, will be implemented from 1 August 2025 onwards, under the name “PM Viksit Bharat Rozgar Yojana (PM-VBRY).” This name aligns with the scheme’s objectives tied to the Viksit Bharat initiative and showcases the Indian Government’s strong commitment when it comes to creating inclusive and sustainable employment opportunities across the country. 

Earlier, the Union Cabinet, led by Prime Minister Shri Narendra Modi, had approved this scheme. With a budget of Rs 99,446 crore, PM-VBRY aims to incentivize the creation of more than 3.5 crore jobs over a span of two years. Out of these jobs, 1.92 crore jobs will be targeted at first-time job seekers entering the workforce. The benefits of the scheme will apply to jobs created between 1 August 2025 and 31 July 2027.

The scheme incentivizes employers to create new jobs. Further, it aims to provide benefits for the new jobs’ generation across various industries with a prime focus on the manufacturing industry. To speed up economic growth via employment-led development, the scheme forms a key part of India’s strategy. 

The scheme consists of two parts: Part A and Part B. The first part, i.e., Part A, focuses on first-time employees, while the second part, i.e., Part B, targets employers. Check out the details about both these parts below!

Part A: To Incentivize First-Time Employees

This part of PM-VBRY majorly focuses on first-time employees who are registered with the Employees' Provident Fund Organisation (EPFO). It will provide an incentive of one month's EPF wage, up to Rs. 15,000, distributed in two installments. Employees with salaries of up to Rs. 1 lakh are eligible for this scheme. 

The first installment, under the scheme, will be paid upon completion of six months of service, and the second installment will be paid upon completion of twelve months of service as well as financial literacy program by the employee. 

To promote a saving culture, a portion of the incentives provided under the scheme will be placed in a savings instrument or deposit account for a fixed period. The employees will be able to withdraw this amount at a later date.

Part B: To Extend Support to Employers

This part of the scheme will cover additional employment generation across all the industries, with a special emphasis on the manufacturing sector. The employers under the PMVBRY scheme will get incentivized for hiring employees with salaries up to Rs. 1 lakh. 

For two years, the Indian government will incentivize employers up to Rs. 3000 per month for each additional employee with sustained employment for a minimum period of 6 months. The incentives will be extended to 3rd and 4th year for the manufacturing sector. 

EPFO-registered establishments must hire a minimum of two additional employees if they have fewer than 50 employees, or five additional employees if they have 50 or more. The new employees must be sustained for at least six months.

Here is the incentive structure for Part B:

Note: It is important to note that employees having EPF wages up to Rs. 10,000 will receive a proportional incentive.

Incentive Payment System

All the payments to first-time employees under Part A of the PM Viksit Bharat Rozgar Yojana (PM-VBRY) will be made via the Direct Benefit Transfer (DBT) method with the help of Aadhar Bridge Payment System (ABPS). Payments to employers under Part B of the scheme will be deposited directly into their accounts linked to their PAN.

Source: Press Information Bureau (PIB)