Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY): India’s Ambitious Employment Incentive Scheme Launching August 2025
India is taking a bold step towards boosting employment and fueling economic growth with the upcoming launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY). Set to roll out from August 1, 2025, this new scheme is designed to create 3.5 crore jobs within two years, providing significant benefits for both job seekers and employers. The initiative falls in line with India’s vision of a more developed, self-reliant nation by promoting inclusive, sustainable job growth, especially in the vital manufacturing sector.
Understanding the Pradhan Mantri Viksit Bharat Rozgar Yojana
The PMVBRY is an employment-linked incentive scheme introduced by the Government of India under the broader Viksit Bharat program. The focus is on empowering the workforce and supporting employers to actively create more jobs.
Some key features of the scheme include:
- A target to create 3.5 crore new jobs from August 1, 2025, to July 31, 2027.
- A massive financial outlay of Rs 99,446 crore over the two-year period.
- Special focus on first-time workers, encouraging new entrants into the workforce.
- Substantial incentives for employers hiring additional staff.
Scheme Components: Part A and Part B
The scheme is divided into two parts, each catering to different stakeholders:
Part A: Incentives for First-time Workers
This component is dedicated to individuals joining the workforce for the first time. The main provisions are:
- Eligible employees are those who have registered with the Employees’ Provident Fund Organisation (EPFO) and have never been part of India’s formal workforce.
- To qualify, the individual’s monthly salary should not exceed Rs 1 lakh.
- First-time workers will receive a one-time EPF wage benefit of up to Rs 15,000, split into two instalments.
- The first instalment is paid after six months of continuous service.
- The second comes after completing one year, along with mandatory financial literacy training.
- The first instalment is paid after six months of continuous service.
- Part of the incentive will be held in a deposit account to encourage savings, which can be withdrawn later.
- Direct Benefit Transfer (DBT) is used for payments to ensure transparency and prompt delivery.
Quick Facts: Part A
- Applies to jobs in various sectors, especially manufacturing.
- Aims to provide stable, long-term employment.
- Focus on building financial literacy and encouraging saving habits among first-time workers.
Part B: Incentives for Employers
This part of the scheme seeks to energize employers to expand their teams:
- Employers receive Rs 3,000 per month for every eligible new employee (with a monthly salary up to Rs 1 lakh) they hire and retain for at least six months.
- This support is available for two years for jobs created in multiple sectors and will continue in the manufacturing sector for the third and fourth years.
- Incentive payments to employers will be made directly to their PAN-linked business accounts.
Employer Eligibility Criteria
- EPFO-registered establishments must hire:
- At least two additional employees if they have fewer than 50 workers.
- At least five additional employees if they have 50 or more workers on their payroll.
- At least two additional employees if they have fewer than 50 workers.
- New employees must be retained for a minimum of six months to qualify for incentives.
Benefits of the Scheme
The launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana promises multifaceted benefits for the Indian economy, workforce, and industry leaders:
- For job seekers:
- Direct government support for those entering the workforce.
- Financial incentives and savings programs to kickstart their professional journey.
- Increased opportunities due to expanded hiring by employers.
- Direct government support for those entering the workforce.
- For employers:
- Cash incentives reduce hiring costs and encourage workforce expansion.
- Long-term support, particularly for industries like manufacturing, boosts sustainability.
- Cash incentives reduce hiring costs and encourage workforce expansion.
- For the nation:
- Catalyzes economic growth through mass job creation and reduced unemployment.
- Contributes to a more skilled, financially literate workforce.
- Drives the broader goal of making India a developed economy.
- Catalyzes economic growth through mass job creation and reduced unemployment.
How Does the Payment System Work?
The scheme ensures robust and transparent payment systems, utilising:
- The Aadhaar Bridge Payment System (ABPS) for paying incentives directly to eligible employees.
- Employers receive their incentives straight to PAN-linked accounts, simplifying the process.
The Pradhan Mantri Viksit Bharat Rozgar Yojana marks a significant government initiative aimed at uplifting the job market, supporting both employees and employers, and propelling India towards greater economic prosperity. With a comprehensive structure, clear eligibility norms, and substantial budget support, PMVBRY is poised to make a profound impact on the country’s employment landscape over the next few years.
