BTL 810 - PM VBRY

 

The Banking Tutor’s Lessons

BTL 810                                                                   03-08-2025

PM VBRY (PM Viksit Bharat Rozgar Yojana) 

PM-VBRY is an Employment-linked incentive (ELI) scheme launched by Ministry of Labour & Employment,  GoI to incentivize job creation, particularly for first-time employees and in the manufacturing sector. 

The scheme is effective from August 1, 2025. 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. 

The Union Cabinet had approved this scheme, with an outlay of Rs 99,446 Crore. It 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 workforce. 

The benefits of the Scheme would be applicable to jobs created between 01 August 2025 and 31 July 2027. 

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 15,000 in two installments. Employees with salaries up to Rs 1 lakh will be eligible.

The 1 installment will 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a portion of the incentive will be kept in a savings instrument or deposit account for a fixed period and can be withdrawn by the employee at a later date. 

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). 

Incentives for Employers (Part B) 

EPFO-registered employers must hire a minimum number of additional employees for at least six months to qualify for benefits. 

Employers with less than 50 employees need to hire at least two additional employees, while those with 50 or more employees need to hire at least five additional employees. 

The scheme supports job creation across all sectors, with a special emphasis on manufacturing. 

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 extended to the 3 and 4 years as well. 

Payments to the Employers under Part B will be made directly into their PAN-linked Accounts. 

The incentive structure will be as under: 

EPF Wage Slabs of Additional Employee	Benefit to the Employer (per additional 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 Lakh/month)	Rs 3,000

*Employees with EPF wages up to Rs. 10,000 will get a proportional incentive. 

PM-VBRY provides incentives to employers and first-time employees to stimulate job creation, contributing to India's economic growth and the "Viksit Bharat" initiative. 

Sekhar Pariti

+91 9440641014