The Government of India has launched an ambitious new initiative – Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) with the aim of creating millions of jobs, boosting private-sector hiring, and supporting India’s vision of becoming a developed nation by 2047.
Announced by Prime Minister Narendra Modi on 15 August 2025 during his Independence Day speech from the Red Fort, the scheme carries a budget outlay of 1 lakh crore and targets the creation of 3.5 crore jobs over the next two years.
This article will explain what PM-VBRY is, who can benefit, how it works, and why it is important for India’s economic growth.
What is PM Viksit Bharat Rozgar Yojana?
PM-VBRY is a dual-benefit employment scheme that provides financial incentives both to first-time job-seekers and to employers who hire new staff.
PM-VBRY It aims to:
- Encourage young Indians to join formal sector employment.
- Support private companies in expanding their workforce.
- Increase EPFO (Employees’ Provident Fund Organisation) registrations.
- Promote financial literacy and long-term savings.
The scheme will run from 1 August 2025 to 31 July 2027.
Key Features of PM-VBRY
1. Two-Part Structure
Part A – Benefits for employees entering private-sector jobs for the first time.
Part B – Benefits for employers hiring additional staff.
2. Large-Scale Coverage
Targets 1.92 crore first-time employees.
Incentivises over 1.5 crore new hires in the private sector.
3. Direct Benefit Transfer (DBT)
All payments will be sent directly to Aadhaar-linked bank accounts for employees and PAN-linked accounts for employers.
4. Special Focus on Manufacturing
Additional incentives for manufacturing companies to promote job creation in high-growth industries.
Part A – Benefits for First-Time Employees
Under this part, the government rewards individuals who get their first job in the formal private sector and are registered under EPFO.
PM-VBRY Eligibility Criteria
Must be joining the private sector for the first time.
Monthly salary up to 1 lakh.
Registered with EPFO.
Must remain in the job for at least 6 months to claim the first payment.
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PM-VBRY Incentive Structure
One-time incentive equal to one month’s EPF-equivalent wage (maximum 15,000).
Paid in two installments:
1. First installment after 6 months of continuous employment.
2. Second installment after 12 months, following a financial literacy programme.
Part of the second installment will be deposited in a long-term savings instrument.
This approach not only gives financial support but also encourages job stability and saving habits.
Part B – Benefits for Employers
Employers who create new jobs will receive direct financial incentives from the government.
Eligibility for Employers
Must be EPFO-registered.
Need to show net increase in employee numbers.
New employees must remain for at least 6 months.
Hiring Thresholds
Firms with less than 50 employees: Must hire at least 2 new staff.
Firms with 50 or more employees: Must hire at least 5 new staff.
Incentive Structure
Up to 3,000 per month per new hire.
Paid for 2 years (extended to 4 years for manufacturing companies).
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How PM-VBRY Will Work – Step-by-Step
For Employees
1. Get a job in an eligible private company.
2. Ensure EPFO registration through the employer.
3. Complete 6 months in the job.
4. Receive the first installment of the incentive directly into your bank account.
5. After 12 months, attend the financial literacy training and receive the second installment.
For Employers
1. Register under PM-VBRY with valid EPFO and PAN details.
2. Hire the minimum required additional employees.
3. Maintain the increased workforce for the required period.
4. Receive monthly incentive payments from the government.
PM-VBRY Official Duration & Budget
Duration: 2 years (From 1 August 2025 to 31 July 2027)
Budget: 99,446 crore (approx. 1 lakh crore)
Target: 3.5 crore jobs
Expected Benefits of PM-VBRY
1. Massive Job Creation
With over 3.5 crore jobs targeted, this scheme could significantly reduce unemployment rates.
2. Boost to the Formal Sector
Encourages companies to hire more formally, increasing social security coverage.
3. Support for Manufacturing
A longer incentive period for manufacturing could help expand industrial capacity.
4. Financial Literacy
By linking benefits with financial training, it promotes responsible money management.
5. Youth Empowerment
Gives young professionals a strong start in their careers.
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How to Apply for PM-VBRY
For Employees:
No direct application required; benefit is processed through your employer.
Ensure your employer is registered under PM-VBRY and that your EPFO details are correct.
Maintain continuous employment to qualify for payments.
For Employers:
1. Visit the official EPFO/PM-VBRY portal (link to be announced).
2. Submit business details, EPFO registration, and PAN information.
3. Declare new hires and maintain workforce data.
4. Receive incentives directly into the PAN-linked bank account.
Challenges & Points to Remember
While PM-VBRY has strong potential, success will depend on:
- Awareness among job-seekers and employers.
- Proper monitoring to prevent fraudulent claims.
- Ensuring timely DBT payments.
Effective financial literacy training to make the savings component meaningful.
PM-VBRY at a Glance – Summary Table
| Feature | Details |
| Launch Date | 15 August 2025 |
| Duration | 1 Aug 2025 – 31 Jul 2027 |
| Budget | 99,446 crore |
| Jobs Target | 3.5 crore |
| Employee Incentive | 15,000 in two installments |
| Employer Incentive | 3,000/month per new hire |
| Payment Mode | Direct Benefit Transfer |
| Focus | Youth employment, private sector growth, manufacturing |
Conclusion
The PM Viksit Bharat Rozgar Yojana is a bold step towards transforming India’s employment landscape. By rewarding both employees and employers, the scheme addresses two critical challenges , encouraging young people to enter the formal workforce and motivating companies to hire more staff.
If implemented effectively, PM-VBRY could:
- Increase formal job opportunities.
- Strengthen the private sector.
- Enhance financial security for millions of workers.
- Support India’s march towards Viksit Bharat 2047.
For India’s youth, this is not just a government scheme; it’s an opportunity to build a stable, secure, and prosperous career.