Securing India’s Workforce
The Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY) is a highly structured, technology-driven initiative that successfully accelerates India’s formal workforce integration. Launched on 1 August 2025 with a budgetary outlay of ₹99,446 crore, the scheme marks its first full year of implementation. Administered by the Ministry of Labour & Employment through the Employees’ Provident Fund Organisation (EPFO), it aims to incentivize the creation of over 3.5 crore jobs by 31 July 2027, with a core focus on 1.92 crore first-time employees
India’s young and dynamic workforce is one of its greatest strengths. It offers a unique opportunity to drive economic growth and deliver the vision of Viksit Bharat 2047. Millions of young people enter the labour market each year. Expanding formal employment with social security is essential to transform this demographic advantage into sustained and inclusive development.
The Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY) reinforces the national priority by encouraging first-time employment and supporting job creation. Through a transparent, Employees’ Provident Fund Organisation (EPFO) – administrated framework, it strengthens workforce formalisation while creating opportunities for both employees and employers.
Core Structural Framework
The scheme features a dual-incentive design to motivate both the supply (job seekers) and demand (employers) sides of the formal labour market.
Part A: Direct Benefits to First-Time Employees
• Eligibility: New workforce entrants earning up to ₹1,00,000 per month.
• Incentive: A one-time subsidy equivalent to one month’s EPF wage, capped at ₹15,000.
• Phased Disbursal: Split into two instalments. The first disburses after 6 months of continuous service; the second occurs at 12 months, contingent on the completion of a mandatory financial literacy course.
• Savings Enforcement: Part of the second instalment is locked into a designated savings instrument to cultivate long-term financial security.
Part B: Hiring Support for Employers
• Incentive: Up to ₹3,000 per month for two years for every additional, eligible worker retained for at least six months.
• Manufacturing Premium: To bolster the National Manufacturing Mission, this support extends to a third and fourth year specifically for labour-intensive manufacturing sectors.
Quantitative Performance and Successes
Data released at the one-year milestone indicates substantial operational momentum:
• Job Creation Numbers: Over 72 lakh first-time employees have successfully registered and joined the formal workforce under the framework.
• Incentive Disbursement: Prime Minister Narendra Modi initiated a direct benefit transfer (DBT) of ₹2,400 crore to release incentives to 15 lakh early beneficiaries.
• Gender Inclusivity: Women represent nearly 30% of total scheme beneficiaries, making a noticeable dent in historical gender gaps in India’s formal sectors.
• Leakage Prevention: Implementation runs on a fully digital, EPFO-linked portal utilizing Aadhaar-based authentication, Universal Account Numbers (UANs), and Face Authentication Technology via the UMANG App to eliminate ghost entries and fraudulent claims.
PM-VBRY is being implemented over a two-year period from 1 August 2025 to 31 July 2027, with an outlay of ₹99,446 crore. On 1 August 2026, the scheme completes one year of implementation, marking an important milestone in India’s efforts to expand formal employment and social security coverage.
PM-VBRY aims to generate employment for over 3.5 crore people, including 1.92 crore first-time employees. The scheme encourages young people to enter the organised workforce through EPFO registration. It also expands social security coverage across various sectors, particularly labour-intensive manufacturing.
It complements the National Manufacturing Mission by promoting employment in new and expanding industries.
PM-VBRY’s Digital Governance and Efficient Delivery
PM-VBRY leverages digital technologies to ensure transparent, efficient and accountable implementation. The scheme enables seamless verification, benefits transfer and real-time monitoring.
• The scheme is implemented through a fully digital, EPFO-linked platform, ensuring seamless verification and efficient benefit delivery.
• It uses Aadhaar-based authentication, Universal Account Numbers (UANs), and regular Electronic Challan-cum-Return (ECR) filings. Incentives are available only after the UAN is authenticated through Face Authentication Technology on the UMANG App. This ensures compliance while expanding social security coverage.
• Incentives are transferred directly to Aadhaar-linked bank accounts through Direct Benefit Transfer (DBT), enhancing transparency and accountability.
• A PM-VBRY portal facilitates end-to-end scheme implementation and provides real-time monitoring of beneficiaries and sector-wise progress.
Awareness about the scheme and its provisions is promoted through extensive outreach efforts across the country. Cross-Functional Teams comprising officials from EPFO, Employees’ State Insurance Corporation (ESIC), and the Chief Labour Commissioner (CLC) support these efforts by increasing participation at the grassroots level.
Strategic Outlook
As PM-VBRY transitions into its second and final year of registration, its ultimate success depends on bridging the gap between temporary subsidy structures and permanent employment security. Expanding inter-agency outreach via cross-functional teams (EPFO, ESIC, and the Chief Labour Commissioner) will remain critical to boosting grassroots corporate compliance and keeping India’s formal economic engine moving forward.
