M Viksit Bharat Rozgar Yojana (PM-VBRY)

Context

The Union Cabinet has approved the implementation of PM Viksit Bharat Rozgar Yojana (PM-VBRY) from 1st August 2025 to incentivize job creation in India.

M Viksit Bharat Rozgar Yojana (PM-VBRY)

Objective and Design:

PM-VBRY is an Employment Linked Incentive (ELI) Scheme with an outlay of ?99,446 crore.
It aims to generate over 3.5 crore jobs from 01 August 2025 to 31 July 2027.
It supports the Government’s Viksit Bharat vision by targeting inclusive and sustainable employment.

Structure of the Scheme:

Part A – Incentive to First-Time Employees:
- Targets EPFO-registered new employees.
- Offers EPF wage support up to ?15,000 in two installments.
- Eligibility: Salaried individuals earning up to ?1 lakh/month.
- A portion of the benefit is retained in a savings/deposit account to promote saving habits.
Part B – Incentive to Employers:
- Applies across sectors, with special focus on the manufacturing sector.
- Applicable to additional employees drawing salary up to ?1 lakh/month.
- Duration: 2 years; extended to 3rd and 4th years for manufacturing.
Minimum hiring requirement:
- At least 2 new employees for firms with <50 employees.
- At least 5 new employees for firms with ?50 employees.

Payment Mechanism:

Part A payments: Direct Benefit Transfer (DBT) using Aadhaar-Based Payment System (ABPS).
Part B payments: Credited to PAN-linked employer accounts.