Why in news?
The government announced that it has disbursed around ₹2,400 crore under the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY), bringing more than 70 lakh people into formal jobs. The scheme rewards first‑time employees and encourages employers to create additional jobs.
Background
PMVBRY was launched on 1 August 2025 to promote job creation and formalisation of the workforce. It replaced the earlier Atmanirbhar Rozgar Yojana. The scheme operates with two parts. Part A provides a direct incentive to first‑time employees, while Part B offers wage‑based incentives to employers who create net new employment. The Ministry of Labour and Employment issues guidelines and administers the programme.
Eligibility and benefits
- Part A – Incentive for employees: Workers who were not members of the Employees’ Provident Fund (EPF) on or before 31 July 2025 and who obtain their first EPF‑registered job between 1 August 2025 and 31 July 2027 qualify. Their monthly wage must not exceed ₹1,00,000. Eligible employees receive up to ₹15,000 in two instalments. The first half is paid after six months of continuous employment, and the second half after twelve months. The second instalment is invested in approved financial instruments to encourage savings.
- Part B – Incentive for employers: EPFO‑ registered establishments that create net additional jobs above a baseline are rewarded. Companies with up to 50 workers must add at least two new employees; larger employers must add at least five. They receive a monthly incentive of 20 % to 30 % of each eligible worker’s wages, capped at ₹3,000 per employee per month. The incentive is available for two years across all sectors and extends to four years for manufacturing units. Payments are transferred directly to the employer’s PAN‑linked bank account.
- Focus on manufacturing: Manufacturing units receive the higher 30 % incentive and a longer support period to encourage large‑scale job creation and skill development.
- Compliance requirements: Employers must be EPFO compliant and maintain the net addition in employment for the entire incentive period. Employees must remain in continuous employment and not switch to another job covered under the scheme.
Implementation and progress
- The scheme has created around 70 lakh new formal jobs within its first year, according to official data.
- Approximately 20 lakh employees have completed six months in their first formal job and have received the first instalment of ₹7,500 each.
- The government has disbursed about ₹2,400 crore so far, benefitting both employees and employers. Additional funds will be released as more beneficiaries complete their twelve‑month milestone.
- The scheme aims to encourage young people to enter the formal workforce, improve job security and support employers in expanding their payrolls.
Conclusion
PMVBRY is a comprehensive effort to link job seekers with formal employment and to motivate employers to hire more workers. By offering incentives to both employees and employers, the scheme supports skill development, income security and economic growth.