Pradhan Mantri Viksit Bharat Rozgar Yojana 2025 – Full Details, Eligibility, Benefits & Examples

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Himanshu
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Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) – Complete Guide

India has been striving to expand job opportunities, formalize employment, and boost industries. To address this, the Government of India has launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), a landmark scheme that combines support for job seekers and employers under one program. With a budget of nearly ₹1 lakh crore, the scheme aims to create 3.5 crore new jobs over two years (August 2025 to July 2027).

In this article, we’ll explain the scheme in detail, break down the benefits for employees and employers, and give practical examples to make it easy to understand.

Objectives of PM-VBRY

  1. Boost youth employment – Encourage first-time workers to join the formal workforce.
  2. Support employers – Incentivize companies, especially in manufacturing, to create sustainable jobs.
  3. Promote financial literacy – Encourage young workers to save and manage money effectively.
  4. Strengthen Make in India – Extend long-term incentives to manufacturing units.

Structure of the Scheme

The scheme is divided into two parts:

Part A – Benefits for Employees (First-time Workers)

  • Eligibility:
    • Must be joining formal employment for the first time between 1 Aug 2025 and 31 Jul 2027.
    • Should not have been a member of EPFO earlier.
    • Monthly salary must be ₹1 lakh or less.
  • Incentive:
    Equivalent to one month’s EPF wage (up to ₹15,000), given in two instalments:
    • First instalment after 6 months of continuous employment.
    • Second instalment after 12 months, provided the worker completes a financial literacy course.
    • A portion of the incentive will be locked in a savings instrument to build financial discipline.

Example 1 – Employee

Suppose Ravi, a 24-year-old graduate, gets his first job in a logistics company with a monthly salary of ₹20,000. Under PM-VBRY, his “EPF wage” is capped at ₹15,000.

  • After completing 6 months, Ravi receives the first instalment (₹7,500 credited, rest locked in savings).
  • After 12 months, and completing the financial literacy training, he gets the second instalment.
    This gives Ravi extra financial support and encourages him to stay in his first job for at least a year.

Part B – Benefits for Employers

  • Eligibility:
    Employers must be registered with EPFO.
  • Conditions for hiring:
    • Employers with fewer than 50 workers must hire at least 2 new employees.
    • Employers with 50 or more workers must hire at least 5 new employees.
    • The new jobs must continue for at least 6 months.
  • Incentive:
    Employers receive a monthly incentive per new employee, based on their salary:
    • ₹1,000 / ₹2,000 / ₹3,000 per employee (depending on wage level).
    • Paid for 2 years.
    • Extended to 4 years for manufacturing companies.

Example 2 – Employer

Imagine ABC Textiles, a medium-sized garment manufacturer with 60 employees. To qualify under PM-VBRY, they hire 10 new workers with salaries of ₹18,000 each.

For each new hire, the government pays the employer ₹2,000 per month.

  • That’s ₹20,000 per month (₹2,000 × 10 employees).
  • Over 2 years, the company saves ₹4.8 lakh.
  • If ABC Textiles is in manufacturing, the benefit may continue up to 4 years, saving nearly ₹9.6 lakh.

This reduces the cost of expansion, encourages more hiring, and strengthens the manufacturing sector.

Payment Mechanism

  • Employees (Part A) – Direct Benefit Transfer (DBT) to Aadhaar-linked bank account through ABPS.
  • Employers (Part B) – Directly credited to PAN-linked bank accounts.

Why This Scheme Matters

  1. Encourages First-Time Workers – Many young graduates are hesitant about job stability. The financial cushion motivates them to stay longer and learn skills.
  2. Boosts Formal Employment – By linking benefits to EPFO membership, the scheme draws lakhs of workers from the informal to formal economy.
  3. Supports Industry – Reduces hiring costs for businesses, especially in labour-intensive manufacturing.
  4. Improves Financial Habits – The savings lock-in and mandatory financial literacy program help workers manage money wisely.

Expected Impact

  • 3.5 crore jobs to be created in 2 years.
  • 1.92 crore jobs reserved for first-time entrants.
  • Strengthened “Make in India” through long-term employer incentives.
  • Wider social security coverage under EPFO.

Final Thoughts

The Pradhan Mantri Viksit Bharat Rozgar Yojana is more than just a subsidy—it’s a structured push to balance the needs of both employees and employers. By focusing on youth, formalisation, financial literacy, and manufacturing, the scheme could significantly reshape India’s employment landscape over the next two years.

Disclaimer

This article is for informational purposes only. The details are based on publicly available government announcements. For official eligibility, registration, and application process, please refer to the Ministry of Labour & Employment / EPFO guidelines or consult authorised government portals.

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