Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY)

What is it?

PM-VBRY is the government's employment-linked incentive scheme. It came into effect on 1 August 2025 and has two separate parts - one directed at a person taking their first formal job, and one that pays employers for creating new jobs.

Part A covers first-time employees. For a person entering EPFO-covered employment for the first time, the published benefit is one month's EPF wage, up to a maximum of Rs 15,000. It is not paid all at once. The first instalment follows 6 months of continuous employment, and the second follows 12 months of employment together with completion of a financial literacy programme. A portion of the incentive is kept aside in a savings instrument that can be withdrawn after a fixed period, so that the money is not spent immediately.

Part B covers employers. For every additional employee an employer hires and retains for at least six months, the government pays the employer a monthly amount for two years, extended into the third and fourth years for the manufacturing sector. The amount depends on the new employee's EPF wage: up to Rs 1,000 a month where the EPF wage is up to Rs 10,000; Rs 2,000 a month where it is between Rs 10,001 and Rs 20,000; and Rs 3,000 a month where it is between Rs 20,001 and Rs 1,00,000.

The published conditions for Part B are that an employer with fewer than 50 employees must hire at least 2 additional employees, and an employer with 50 or more employees must hire at least 5, and must sustain those jobs for at least six months. The employer must be registered with EPFO.

The scheme covers jobs created between 1 August 2025 and 31 July 2027. A common misunderstanding: there is no separate application for Part A. The employer registers the new worker with EPFO, and the incentive flows through the EPFO system once the six-month and twelve-month conditions are met.

Potential benefit

₹1,000 – ₹15,000

Part A: a first-time EPFO-registered employee is paid one month's EPF wage up to Rs 15,000, in two instalments - the first after 6 months of service and the second after 12 months of service plus completion of a financial literacy programme. A portion is retained in a savings instrument withdrawable after a fixed period. Part B: employers are paid up to Rs 3,000 per month for each additional employee for two years, extended to the third and fourth years for the manufacturing sector - up to Rs 1,000 per month for an EPF wage up to Rs 10,000, Rs 2,000 per month for Rs 10,001 to Rs 20,000, and Rs 3,000 per month for Rs 20,001 to Rs 1,00,000.

Who can apply?

Other conditions stated by the government

• Part A applies to employees entering EPFO-covered employment for the first time.
• A wage ceiling of Rs 1 lakh applies; the release's Part B slabs are stated as EPF wage up to Rs 10,000, Rs 10,001-20,000 and Rs 20,001-1,00,000.
• Part A is paid in two instalments: the first after 6 months of employment, the second after 12 months of employment plus completion of a financial literacy programme.
• For Part B, an employer with fewer than 50 employees must hire at least 2 additional employees; an employer with 50 or more employees must hire at least 5.
• The additional jobs must be sustained for at least 6 months.
• The employer must be registered with EPFO.
• The scheme covers jobs created between 1 August 2025 and 31 July 2027.
• No age limit is stated in the release read, despite the scheme being publicised as aimed at youth.

Eligibility information is provided for informational purposes only. Final eligibility and approval are determined by the relevant government authority.

How to apply

There is no separate application form for an employee. The employee joins an EPFO-registered employer, and the Universal Account Number is generated with Aadhaar seeded and linked to the bank account. Employers claim Part B incentives through the EPFO system for additional employees hired and retained for at least six months.

Where to apply: online

Deadline

No fixed deadline. Applications are accepted on a rolling basis.