PM Viksit Bharat Rozgar Yojana (PM-VBRY)

Context:

The PM Viksit Bharat Rozgar Yojana (PM-VBRY) is a new national scheme aimed at boosting formal sector employment, replacing the earlier Employment Linked Incentive (ELI) Scheme. It will be implemented from 1st August 2025.

Key Details

• Ministry: Ministry of Labour and Employment
• Scheme Launch: 1 August 2025
• Implementation Period: 2025–2027
• Total Outlay: ₹99,446 crore
• Target: Over 3.5 crore new jobs, including 1.92 crore first-time workers

Objectives

• Encourage inclusive and sustainable job creation
• Support first-time formal sector employees
• Provide financial incentives to employers for hiring new staff, especially in manufacturing

Key Features

Part A: Incentive for First-Time Employees

• Eligibility: New EPFO-registered workers with monthly wages up to ₹1 lakh
• Incentive: Equivalent to one-month EPF wage (capped at ₹15,000)
• Installment Plan:
  • 1st installment: After 6 months of continuous service
  • 2nd installment: After 12 months + completion of financial literacy training
• Savings Component: A portion will be locked in a deposit account

Part B: Incentive for Employers

• Eligibility:
  • For entities with <50 employees: must hire 2+ new employees
  • For entities with ≥50 employees: must hire 5+ new employees
• Incentive Slabs(per employee/month):
  • ₹1,000 for wages ≤ ₹10,000
  • ₹2,000 for wages ₹10,001–₹20,000
  • ₹3,000 for wages ₹20,001–₹1,00,000
• Tenure:
  • 2 years for all sectors
  • 4 years for manufacturing sector

Payment Mechanism

• To Employees: Through Direct Benefit Transfer (DBT) via Aadhar-Based Payment System (ABPS)
• To Employers: Paid to PAN-linked bank accounts