**Summary:**
The Ministry of Labour and Employment will implement the PM Viksit Bharat Rozgar Yojana (PMVBRY) effective August 1st, 2025. This Employment Linked Incentive (ELI) Scheme, with a total outlay of Rs 99,446 Crore, aims to generate over 3.5 Crore jobs within two years, with 1.92 Crore beneficiaries being first-time workforce entrants. The scheme incentivizes employers to create new employment opportunities across various sectors, with a special focus on manufacturing, for jobs created between August 1st, 2025, and July 31st, 2027.
The PMVBRY comprises two parts:
* **Part A: Incentive to First-Time Employees:** Provides a one-month EPF wage (up to Rs 15,000) in two installments to first-time Employees' Provident Fund Organisation (EPFO) registered employees earning up to Rs 1 lakh per month. The first installment is payable after six months of service, and the second after twelve months and completion of a financial literacy program. A portion of the incentive will be saved in a fixed-term savings instrument. Payments will be made through Direct Benefit Transfer (DBT) using the Aadhar Bridge Payment System (ABPS).
* **Part B: Support to Employers:** Incentivizes employers for creating additional employment in all sectors, particularly manufacturing, for employees earning up to Rs 1 lakh per month. The government will provide incentives up to Rs 3,000 per month for two years for each additional employee with sustained employment of at least six months. For the manufacturing sector, incentives will extend to the third and fourth years. EPFO-registered establishments must hire at least two additional employees (if the employer has less than 50 employees) or five additional employees (if the employer has 50 or more employees) on a sustained basis for at least six months to qualify. The incentive structure is tiered based on the EPF wage slab of the additional employee: Up to Rs 1,000 for wages up to Rs 10,000, Rs 2,000 for wages between Rs 10,000 and Rs 20,000, and Rs 3,000 for wages above Rs 20,000 up to Rs 1 lakh. Payments to employers under Part B will be made directly into their PAN-linked accounts.
Key Entities Referenced
PM Viksit Bharat Rozgar Yojana: A scheme (PMVBRY) to incentivize employment generation, formerly known as the Employment Linked Incentive (ELI) Scheme.
Employment Linked Incentive: The original name of the scheme before being renamed to PM Viksit Bharat Rozgar Yojana (PMVBRY).
Union Cabinet: The decision-making body of the Government of India that approved the scheme.
Narendra Modi: The Prime Minister of India who chaired the Union Cabinet meeting that approved the PMVBRY scheme.
Employees' Provident Fund Organisation: An organisation (EPFO), first time employees registered with EPFO will be considered under Part A.
Direct Benefit Transfer: A system (DBT) through Aadhar Bridge Payment System(ABPS) mode for incentive payments to First Time Employees under Part A of the scheme.
Ministry of Labour Employment: The government ministry responsible for the PM Viksit Bharat Rozgar Yojana (PMVBRY).
Delhi: Location where the press release was issued.
Ministry of Labour & Employment
‘PM Viksit Bharat Rozgar Yojana (PM-VBRY)’ to
come into effect from 1st August 2025
Posted On: 25 JUL 2025 1:04PM by PIB Delhi
The Employment Linked Incentive (ELI) Scheme which was cleared by Union Cabinet, will come into effect
st
from 1 August 2025 as the “PM Viksit Bharat Rozgar Yojana (PM-VBRY)”. The name is in alignment
with the scheme’s overall objectives towards the Viksit Bharat initiative and reflects the Government’s
commitment to generating inclusive and sustainable employment opportunities in the country.
Earlier, the Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, had approved this scheme.
With an outlay of Rs 99,446 Crore, the PMVBRY aims to incentivize the creation of more than 3.5 Crore jobs
in the country, over a period of 2 years. Out of these, 1.92 Crore beneficiaries will be first timers, entering the
st st
workforce. The benefits of the Scheme would be applicable to jobs created between 01 August 2025 and 31
July 2027.
The scheme, which incentivizes employers to create new employment, aims to provide benefits for the
generation of new jobs across various sectors with special focus on the manufacturing sector. It forms a
crucial part of India’s strategy to accelerate economic growth through employment-led development.
The Scheme consists of two parts with Part A focused on first timers and Part B focused on employers:
Part A: Incentive to First-Time Employees:
Targeting first-time employees registered with EPFO, this Part will offer one-month EPF wage up to Rs
st
15,000 in two installments. Employees with salaries up to Rs 1 lakh will be eligible. The 1 installment will
nd
be payable after 6 months of service and the 2 installment will be payable after 12 months of service and
completion of a financial literacy programme by the employee. To encourage the habit of saving, 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.
Part B: Support to Employers:
This part will cover the generation of additional employment in all sectors, with a special focus on the
manufacturing sector. The employers will get incentives in respect of employees with salaries up to Rs 1 lakh.
The Government will incentivize employers, up to Rs 3000 per month, for two years, for each additional
employee with sustained employment for at least six months. For the manufacturing sector, incentives will be
rd th
extended to the 3 and 4 years as well.
Establishments, which are registered with EPFO, will be required 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.
The incentive structure will be as under:
EPF Wage Slabs of Additional Employee Benefit to the Employer (per additional
(in employment per month)
Up to Rs 10,000* Up to Rs 1,000
More than Rs 10,000 and up to Rs 20,000 Rs 2,000
More than Rs 20,000 (up to salary of Rs 1
Rs 3,000
Lakh/month)*Employees with EPF wages up to Rs. 10,000 will get a proportional incentive.
Incentive Payment Mechanism:
All payments to the First Time Employees under Part A of the Scheme will be made through DBT (Direct
Benefit Transfer) mode using the Aadhar Bridge Payment System (ABPS). Payments to the Employers under
Part B will be made directly into their PAN-linked Accounts.
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MG/DK
(Release ID: 2148270)