Pradhan Mantri Viksit Bharat Rozgar Yojana: ₹2,400 Crore Incentives Disbursed to Boost Formal Employment
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On June 19, 2026, Prime Minister Narendra Modi disbursed ₹2,400 crore under the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), a flagship scheme driving formal employment and economic growth. This pivotal move signifies the government's steadfast commitment to fostering job creation and empowering India's dynamic workforce, bringing the vision of Viksit Bharat closer to reality. The initiative aims to accelerate job creation, promote the formalization of employment, enhance employability, and expand social security coverage across various sectors, ensuring that the benefits of economic progress reach a broader segment of the population.
A Landmark Day for Employment in India
In a significant development for India's employment landscape, Prime Minister Narendra Modi officially disbursed incentives totaling approximately ₹2,400 crore under the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) on June 19, 2026. This monumental event took place at a special program held at Vigyan Bhawan in New Delhi, underscoring the government's dedicated efforts to bolster formal employment across the nation.
The disbursement on this date marks a crucial milestone in the execution of PM-VBRY, a program designed to inject vitality into the labor market. Concurrently, approximately 200 similar events were organized nationwide in major industrial and employment hubs, including Nagpur and Chandrapur, ensuring a broad reach and awareness of the scheme's benefits. These events featured the ceremonial handover of appointment letters to newly selected employees by employers, highlighting the scheme's tangible impact on formal job creation and support for young individuals entering the organized workforce.
About the Pradhan Mantri Viksit Bharat Rozgar Yojana
The Pradhan Mantri Viksit Bharat Rozgar Yojana, formerly known as the Employment Linked Incentive (ELI) Scheme, was officially launched on August 1, 2025. Envisioned to achieve the goal of Viksit Bharat@2047, this scheme was first announced in the Union Budget 2024-25 as an innovative approach to address India's evolving employment challenges. With a substantial total outlay of ₹99,446 crore, PM-VBRY is meticulously structured to incentivize the creation of over 3.5 crore jobs throughout the country over a two-year period, specifically between August 1, 2025, and July 31, 2027. Out of this ambitious target, around 1.92 crore beneficiaries are anticipated to be first-time entrants into the formal workforce, symbolizing a significant expansion of social security coverage and formal employment opportunities.
Objectives: Fostering a Robust Labor Market
The core objectives of the PM-VBRY are multifaceted, aiming to create an inclusive and robust labor market. These include:
- Enhancing Private Sector Employment: The scheme encourages private sector companies to recruit additional staff, particularly new entrants, by offering financial rewards for job creation.
- Promoting Youth Employment: A primary goal is to reduce youth unemployment by encouraging businesses to hire young individuals entering the workforce for the first time.
- Boosting Formalization: It strives to bring more workers and employers into the formal economy, thereby expanding social security coverage.
- Improving Employability: The scheme supports on-the-job training and skill development, making first-timers more employable and contributing to a skilled workforce.
- Encouraging Job Retention: Measures are in place to encourage job retention by providing incentives to employers who maintain elevated workforce levels over time.
- Strengthening Economic Growth: By catalyzing employment generation across all sectors, with a special focus on manufacturing, the scheme contributes significantly to overall economic development.
Incentives for First-Time Employees (Part A)
Part A of the PM-VBRY is specifically designed to support individuals entering the formal workforce for the first time. Eligible first-time employees are those who join an Employees' Provident Fund Organisation (EPFO)-registered establishment between August 1, 2025, and July 31, 2027, and have a gross monthly wage of up to ₹1,00,000.
Key benefits for employees include:
- Financial Incentive: Eligible employees receive an incentive equivalent to one month's EPF wage, capped at a maximum of ₹15,000.
- Two-Part Disbursement: The incentive is disbursed in two installments. The first installment is paid directly to the Aadhaar-seeded bank account of the employee upon completion of six months of continuous service in the same establishment. The second installment is transferred after 12 months of service, provided the employee has also completed a financial literacy course prescribed by EPFO, encouraging long-term savings habits.
- Hassle-Free Process: No separate application is required for employees. Once a PF account is created and linked to Aadhaar, eligibility is automatic.
Incentives for Employers (Part B)
Part B of the scheme provides crucial support and incentives to employers for generating and sustaining additional employment, with a significant emphasis on the manufacturing sector. This component encourages businesses to expand their workforce by offsetting the costs associated with new hires.
Key benefits and eligibility for employers include:
- Monthly Incentive: Employers are eligible for an incentive of up to ₹3,000 per month per additional eligible employee.
- Duration of Benefits: The incentives are provided for a period of two years for employers in most sectors. Recognizing the strategic importance of manufacturing in driving economic growth, employers in the manufacturing sector receive extended benefits for an additional two years, totaling four years.
- Eligibility Criteria: To qualify, establishments must be EPFO-compliant and registered on the EPFO's employer login portal. They need to hire eligible new or re-joining workers whose Universal Account Numbers (UANs) are Aadhaar-authenticated and whose gross wages are up to ₹1,00,000 per month.
- Employment Thresholds: Companies with fewer than 50 employees must make at least two additional hires, while those with 50 or more employees need to recruit at least five additional staff to be eligible.
- Sustained Employment: Benefits are contingent on maintaining the new hires for a minimum of six months, and employers must submit monthly Electronic Challan cum Return (ECR) with PF contributions on time.
- Direct Benefit Transfer: Incentives are credited directly to the employer's PAN-linked company bank account.
Implementation and Wider Reach
The Pradhan Mantri Viksit Bharat Rozgar Yojana is being implemented by the Ministry of Labour & Employment through the Employees' Provident Fund Organisation (EPFO), a statutory body under the Employees' Provident Funds & Miscellaneous Provisions Act of 1952. This institutional backing ensures robust oversight and efficient delivery of the scheme's benefits.
To facilitate easy access, employers can register for the scheme and manage their incentives through the dedicated PM-VBRY portals, accessible via pmvbry.epfindia.gov.in or pmvbry.labour.gov.in. First-time employees can generate their Universal Account Number (UAN) using Aadhaar-based face authentication through the UMANG App.
The scheme has already demonstrated its effectiveness, having supported the creation of approximately 15 lakh (1.5 million) employment opportunities across the country since its inception. This impressive early impact underscores the scheme's potential to significantly contribute to India's employment generation goals.
These initiatives, aimed at formalizing the workforce and expanding social security, complement broader governmental efforts. For instance, the significant expansion in the healthcare sector, as highlighted in India's Healthcare Revolution: Union Health Minister Highlights Unprecedented Sector Expansion and Public Health Triumphs, showcases a holistic approach to national development, where health and economic prosperity are intertwined.
Impact and Future Outlook
The Pradhan Mantri Viksit Bharat Rozgar Yojana plays a pivotal role in promoting employment and supporting India's economic growth trajectory. By providing direct financial incentives to both new employees and the businesses that hire them, the scheme directly addresses unemployment and underemployment challenges.
The emphasis on the manufacturing sector, with its extended incentive period, is expected to further strengthen industrial growth and create a more skilled workforce. As India continues its journey towards becoming a developed nation, schemes like PM-VBRY are vital in translating economic progress into tangible benefits for its citizens, particularly the youth. The focus on enhancing employability through sustained employment and financial literacy also equips the new workforce with essential skills for long-term career success.
The government's commitment to employment-led growth is evident in such schemes, which aim to ensure that the benefits of India's economic expansion translate into quality formal employment opportunities. This aligns with the broader vision of a 'Viksit Bharat' where every citizen has the opportunity to contribute to and benefit from the nation's prosperity.
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