New Delhi: The Ministry of Labour & Employment has released detailed guidelines for the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) — a major employment-linked incentive scheme aimed at generating sustained new jobs, increasing workforce formalization and supporting first-time employees entering the labour market. The scheme will be implemented through the Employees’ Provident Fund Organisation (EPFO).
PMVBRY is part of the Prime Minister’s Package for Employment and Skilling, announced in the Union Budget 2024–25 to accelerate India’s employment growth under the vision of Viksit Bharat@2047.
Two-Part Scheme Targeting Both Workers and Employers
The scheme consists of two components:
Part A — Support for First-Time Employees
- One-time financial assistance of up to ₹15,000.
- Helps first-time entrants manage upskilling, induction and financial literacy.
- Paid in two instalments:
- First up to ₹7,500 after six months of contributions
- Second based on average EPF wage after 12 months, post completion of financial literacy module
- First up to ₹7,500 after six months of contributions
- Only employees earning less than ₹1,00,000 per month at the time of joining are eligible.
Part B — Incentives for Employers Creating New Jobs
- Incentives paid for 2 years, extendable to 4 years for manufacturing establishments.
- Applicable for new jobs created above a defined baseline and threshold.
- Incentive amount per employee per month:
- Up to ₹1,000 for EPF wage ≤ ₹10,000
- ₹2,000 for EPF wage ₹10,000–₹20,000
- ₹3,000 for EPF wage ₹20,000–₹1,00,000
- Up to ₹1,000 for EPF wage ≤ ₹10,000
- Designed to increase sustainable job creation, especially in labour-intensive manufacturing.
Establishments Covered and Scheme Duration
- Applicable to all establishments registered under the EPF & MP Act, 1952, including exempted trusts.
- Registration window: 1 August 2025 to 31 July 2027
- Effective date: 1 August 2025
Existing establishments are considered registered automatically but must update PAN, GSTN and bank details.
Baseline and Eligibility Criteria
The scheme uses past employment data to calculate a baseline, above which new jobs qualify for incentives. Key rules include:
- For establishments registered more than 12 months before August 2025, baseline is the average number of employees during Aug 2024–Jul 2025.
- New establishments registered during the scheme period will have a baseline of 20 employees.
- Incentives apply only if establishments exceed the threshold:
- +2 employees for baseline < 50
- +5 employees for baseline ≥ 50
- +2 employees for baseline < 50
Strict Fraud Controls and Compliance Requirements
The guidelines include strong provisions to prevent misuse:
- Incentives denied to establishments facing inquiries under EPF laws or involved in fraud.
- Mandatory Aadhaar-based Face Authentication Technology (FAT) for generating UANs.
- Verification of employment data through API integration with GSTN, Income Tax, MCA, ESIC and other portals.
- Fraudulent claims will attract penalties as per forthcoming government rules.
Direct Benefit Transfer to Employees and Employers
- Employee incentives will be paid into Aadhaar-seeded bank accounts via DBT.
- Employer incentives will be transferred to PAN-linked bank accounts.
- Payments will be released within 45 days after fulfilling eligibility criteria.
Large Financial Outlay and Strong Oversight
The total approved outlay for PMVBRY is ₹99,446 crore, including ₹248 crore for administrative expenses. Oversight will be ensured through:
- A high-level Steering Committee led by the Labour Secretary
- A monthly-meeting Executive Committee headed by the CPFC
- Periodic third-party evaluations
- Dedicated IT systems and a monitoring portal showing real-time progress
A Major Push Toward Formal, Productive Employment
Through a combination of wage support for first-time employees and multi-year hiring incentives for employers, PMVBRY is positioned to significantly boost formal employment creation, particularly among India’s youth and in labour-intensive industries.
The scheme is expected to support new industries, accelerate manufacturing growth and strengthen India’s journey toward a more productive and inclusive workforce.
