Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY)

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Recently, the Prime Minister of India disbursed incentives worth approximately ₹2,400 crore under the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) to promote formal employment and strengthen social security coverage in the country.

About Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY)

The Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) is a flagship employment generation scheme launched by the Government of India to encourage the creation of formal sector jobs.

The scheme provides financial incentives to both first-time employees and employers, encouraging greater enrolment under the Employees' Provident Fund Organisation (EPFO). It aims to increase formal employment, expand social security benefits, and contribute to the vision of Viksit Bharat (Developed India) by 2047.

Objectives of PM-VBRY

Promote Formal Employment

The scheme encourages employers to create new formal jobs by providing financial support for hiring additional employees.

Expand Social Security Coverage

By increasing enrolment under the Employees' Provident Fund Organisation (EPFO), the scheme ensures that more workers receive benefits such as provident fund, pension, and insurance.

Support First-Time Job Seekers

PM-VBRY provides financial assistance to young people entering formal employment for the first time, making the transition to the organised workforce easier.

Contribute to Viksit Bharat 2047

The scheme supports the government's long-term goal of building a developed, inclusive, and employment-driven economy by 2047.

Key Features of PM-VBRY

Part A – Support for First-Time Employees

Under Part A, the scheme provides financial support to first-time employees registered with EPFO.

Eligible employees can receive an incentive equivalent to one month's EPF wage, subject to a maximum of ₹15,000, which is paid in two instalments.

The benefit is available to employees earning a monthly salary of up to ₹1 lakh.

All payments are made through the Direct Benefit Transfer (DBT) system using the Aadhaar Bridge Payment System (ABPS), ensuring transparency and timely transfer of funds.

Part B – Incentives for Employers

Part B aims to encourage employers to generate additional employment across all sectors, with a special emphasis on the manufacturing sector.

Employers hiring new workers earning up to ₹1 lakh per month are eligible for government incentives.

The government provides an incentive of up to ₹3,000 per month for each additional employee, provided the employment is sustained for at least six months.

These incentives are available for two years for all sectors.

For the manufacturing sector, incentives are extended for an additional third and fourth year, recognising its importance in employment generation.

Payments are made directly into the employer's PAN-linked bank account.

Significance of PM-VBRY

Boosts Formal Employment

The scheme encourages businesses to create more formal sector jobs, reducing informal employment and improving job security.

Strengthens Social Security

By promoting EPFO registration, PM-VBRY expands access to retirement savings, pension benefits, and social security protection for workers.

Supports Youth Employment

Financial assistance to first-time employees helps young people enter the organised workforce and promotes stable career opportunities.

Promotes Manufacturing Growth

Extended incentives for the manufacturing sector encourage industries to create more employment, supporting the Make in India initiative and industrial development.

Encourages Digital Governance

The use of DBT, ABPS, and PAN-linked accounts ensures transparent, efficient, and leak-proof delivery of incentives.