Why in News?
The Pradhan Mantri Vikasit Bharat Rozgar Yojana (PM-VBRY) completed one year of implementation on 1 August 2026.
Importance
- This scheme encourages first-time employees to join the formal sector.
- It expands formal employment and social security coverage through Employees' Provident Fund Organisation.
- It also gives employers financial incentives to create new jobs.
- It supports the goal of Viksit Bharat 2047 by building a skilled, secure and formal workforce.
Key Highlights
- Timeline of the Scheme: PM-VBRY runs from 1 August 2025 to 31 July 2027, with a total outlay of ₹99,446 crore.
- Objective: The aim of this scheme is to provide employment to more than 3.5 crore people, including 1.92 crore first-time employees.
- Incentive for First-Time Employees: First-time employees earning up to ₹1,00,000 per month get an incentive equal to one month's EPF wage, capped at ₹15,000, paid in two installments.
- Incentive for Employers: Employers get support of up to ₹3,000 per month for two years for each additional eligible employee earning up to ₹1,00,000 per month, provided the employee is retained for at least six months.
- Manufacturing Sector: To boost job creation in manufacturing, employers get incentives extended up to the third and fourth year as well.
- Digital Implementation: The scheme runs on an EPFO-linked digital platform using Aadhaar authentication, UAN, ECR filing, face authentication on the UMANG app and benefit transfer through DBT.
- One-Year Achievements: More than 72 lakh first-time employees have joined the formal workforce since August 2025. About 30% of beneficiaries are women, and over 15 lakh beneficiaries have received employment-based incentives.
Static Fact
Pradhan Mantri Vikasit Bharat Rozgar Yojana (PM-VBRY) is an EPFO-based employment incentive scheme of the Ministry of Labour and Employment. It aims to promote formal employment, social security coverage and job creation. Benefits under the scheme are transferred through Direct Benefit Transfer (DBT) into Aadhaar-linked bank accounts.
About Employees' Provident Fund Organisation
- EPFO is a statutory body under the Ministry of Labour and Employment.
- It was set up under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
- It provides social security benefits such as Provident Fund (PF), pension and insurance to employees in the organised sector.
