The Centre’s PM Viksit Bharat Rozgar Yojana (PM-VBRY) will come into effect from August 1, said the Ministry of Labour and Employment on Friday.
The scheme, which has an outlay of ₹99,446 crore, enables first-time employees registered with the Employees’ Provident Fund Organisation (EPFO) to earn ₹15,000, while also incentivising employers, especially those in the manufacturing sector.
PM-VBRY was known as the employment-linked incentive (ELI) scheme when it was cleared by the Union Cabinet. It’s main aim, said the ministry, is to encourage generation of employment as it targets the creation of more than 3.5 crore jobs in India over the next two years.
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“Out of these, 1.92 crore beneficiaries entering the workforce will be first-timers. The benefits of the scheme would apply to jobs created between August 1, 2025, and July 31, 2027,” it added.
For the first-time employees registered with the EPFO, the scheme will offer one-month EPF wage up to ₹15,000 in two instalments, officials informed.
While the first instalment will be payable after six months of service, the second instalment will be payable after 12 months of service and completion of a ‘financial literacy programme’ by the employee.
The scheme is targeted for people with salaries up to ₹1 lakh and pays in instalments to encourage the habit of saving among individuals.
“A portion of the incentive will be kept in a savings instrument or deposit account for a fixed period and can be withdrawn by the employee at a later date”, the official added.
To encourage employers to employ more workforce, the scheme offers benefits across a range of sectors, with a special focus on the manufacturing sector.
“The employers will get incentives in respect of employees with salaries up to ₹1 lakh. The government will incentivise employers, up to ₹3,000 per month, for two years, for each additional employee with sustained employment for at least six months,” the ministry has said, adding that in the manufacturing sector, incentives will be extended to the third and fourth years.
To avail the scheme, EPFO-registered establishments will have to hire at least two additional employees (for employers with less than 50 employees) or five additional employees (for employers with 50 or more employees), on a sustained basis for at least six months.
While payments to first-time employees will be made through DBT (Direct Benefit Transfer) mode using the Aadhar Bridge Payment System (ABPS), payments to the employers will be made directly into their PAN-linked accounts, the ministry said.
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