India Launches Ambitious PM Viksit Bharat Rozgar Yojana

The Indian government is poised to introduce a significant employment-linked incentive scheme, the PM Viksit Bharat Rozgar Yojana (PMVBRY), on August 1, 2025. This initiative, announced by the Labour Ministry, aims to directly enhance job creation across multiple sectors, with a target of generating over 3.5 crore jobs within two years.

The Union Cabinet, led by Prime Minister Narendra Modi, approved the PMVBRY with a substantial financial outlay of ₹99,446 crore. A notable aspect of the scheme is its focus on first-time job seekers, with an estimated 1.92 crore beneficiaries expected to benefit from this initiative. The PMVBRY is a key component of the broader Viksit Bharat initiative, which aims to foster inclusive and sustainable employment generation across the nation.

Scheme Details and Structure

The PMVBRY comprises two distinct parts: Part A, targeting first-time employees, and Part B, focusing on employer incentives. Under Part A, new employees registered with the Employees’ Provident Fund Organisation (EPFO) will receive a one-time payment equivalent to one month’s EPF wage, capped at ₹15,000, disbursed in two installments. This financial support is available for employees earning a monthly salary not exceeding ₹1 lakh.

Part B provides incentives for employers who hire additional employees at a monthly salary up to ₹1 lakh. The government will offer up to ₹3,000 per month per employee for a duration of two years. Employers in the manufacturing sector can also access this support during the third and fourth years. To qualify for the PMVBRY, EPFO-registered establishments must employ a minimum of two or five additional workers, depending on their current workforce size, and retain these employees for a minimum of six months.

Impact on Employment Landscape

The PMVBRY aims to address the pressing need for job creation in India, particularly as the economy continues to recover from the impacts of the global pandemic. By directly incentivizing both job seekers and employers, the scheme seeks to stimulate various sectors and promote sustainable growth.

Payments under Part A will be directly credited to employees’ accounts through the Direct Benefit Transfer system, utilizing the Aadhaar Bridge Payment System. Employers will receive their incentives in accounts linked to their Permanent Account Number (PAN).

As the launch date approaches, stakeholders across the employment sector are closely monitoring the PMVBRY’s implementation and its potential to reshape the job market in India. With its ambitious goals and structured approach, the scheme represents a significant step towards enhancing employment opportunities and driving economic growth in the country.