ET OnlinePrime Minister Narendra Modi announced the Pradhan Mantri Viksit Bharat Rozgar Yojana (Employment Linked Incentives scheme) on August 15, 2025. The scheme that has a financial outlay of Rs 1 lakh crore aims to create over 3.5 crore jobs within two years. While the Prime Minister announced the scheme from the Red Fort on Independence Day, the Union Cabinet approved the scheme on July 1, 2025.
The scheme consists of two parts- Part A and Part B. While Part A offers a one-time EPF wage incentive to first-time employees, Part B will benefit employers for creating additional employment in all sectors.
The government launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) portal on Monday, according to a PTI report.
Puneet Gupta, Partner, People Advisory Services-Tax, EY India, says, “The launch of the much-awaited new employment-linked incentive scheme - Pradhan Mantri Viksit Bharat Yojana (PM VBRY) marks a pivotal step towards shaping India’s workforce of the future. By combining direct incentives for new EPF members with sustained support for employers expanding their workforce, the scheme strikes a balance between immediate job creation and long-term employment stability.”
Also read: Aadhar seeding process as KYC for UAN simplified: Know about EPFO’s latest changes for profile update
Employees with salaries up to Rs 1 lakh will be eligible for Part A incentives offering one-month EPF wage up to Rs 15,000 in two instalments. Employees will get the first instalment after six months of service, while they will receive the second instalment after 12 months of employment and completion of a financial literacy course. The government said it wants to encourage the habit of saving among beneficiary employees and hence, a portion of the incentive will be held in a savings instrument of a deposit account for a pre-determined period. The employee can withdraw the incentive at a later date.
All first timers have to generate Universal Account Number (UAN), through Face Authentication Technology (FAT) available on UMANG App. Employers can now visit Pradhan Mantri Viksit Bharat Rozgar Yojana portal (https://pmvbry.epfindia.gov.in or https://pmvbry.labour.gov.in) and complete one-time registration process.
Gupta further says, “Under Part A of the scheme, new employees joining the Employees’ Provident Fund (EPF) will be eligible for an incentive equivalent to one month’s EPF wages (up to Rs 15,000), payable in two instalments.
Employers will receive incentives for hiring new employees with salaries up to Rs 1 lakh. The government will provide up to Rs 3,000 per month for two years for each additional job created and sustained for at least six months. In the manufacturing sector, the benefit will be extended to the 3rd and 4th years as well. This scheme is expected to help create about 2.6 crore additional new employment.
To get incentives, establishments, which are registered with EPFO, will be required to hire at least two additional employees (for employers with less than 50 employees) or five additional employees (for employers with 50 or more employees), on a sustained basis for at least six months.
Note: Employees with EPF wages up to Rs 10,000 will get a proportional incentive.
The scheme consists of two parts- Part A and Part B. While Part A offers a one-time EPF wage incentive to first-time employees, Part B will benefit employers for creating additional employment in all sectors.
The government launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) portal on Monday, according to a PTI report.
Puneet Gupta, Partner, People Advisory Services-Tax, EY India, says, “The launch of the much-awaited new employment-linked incentive scheme - Pradhan Mantri Viksit Bharat Yojana (PM VBRY) marks a pivotal step towards shaping India’s workforce of the future. By combining direct incentives for new EPF members with sustained support for employers expanding their workforce, the scheme strikes a balance between immediate job creation and long-term employment stability.”
Also read: Aadhar seeding process as KYC for UAN simplified: Know about EPFO’s latest changes for profile update
How much employees will get
Part A of Pradhan Mantri Viksit Bharat Rozgar YojanaEmployees with salaries up to Rs 1 lakh will be eligible for Part A incentives offering one-month EPF wage up to Rs 15,000 in two instalments. Employees will get the first instalment after six months of service, while they will receive the second instalment after 12 months of employment and completion of a financial literacy course. The government said it wants to encourage the habit of saving among beneficiary employees and hence, a portion of the incentive will be held in a savings instrument of a deposit account for a pre-determined period. The employee can withdraw the incentive at a later date.
All first timers have to generate Universal Account Number (UAN), through Face Authentication Technology (FAT) available on UMANG App. Employers can now visit Pradhan Mantri Viksit Bharat Rozgar Yojana portal (https://pmvbry.epfindia.gov.in or https://pmvbry.labour.gov.in) and complete one-time registration process.
Gupta further says, “Under Part A of the scheme, new employees joining the Employees’ Provident Fund (EPF) will be eligible for an incentive equivalent to one month’s EPF wages (up to Rs 15,000), payable in two instalments.
Part B of Pradhan Mantri Viksit Bharat Rozgar Yojana
In Part B, the government will incentivise employers for generating additional employment in all sectors, with a special focus on the manufacturing sector. Employers hiring additional workforce will be eligible for up to Rs 3,000 per month incentive for two years for each additional employment. The incentive for the same will be extended to the third and fourth year if the employer is from the manufacturing sector”
How much incentive an employer will get in scheme
Employers will receive incentives for hiring new employees with salaries up to Rs 1 lakh. The government will provide up to Rs 3,000 per month for two years for each additional job created and sustained for at least six months. In the manufacturing sector, the benefit will be extended to the 3rd and 4th years as well. This scheme is expected to help create about 2.6 crore additional new employment.To get incentives, establishments, which are registered with EPFO, will be required to hire at least two additional employees (for employers with less than 50 employees) or five additional employees (for employers with 50 or more employees), on a sustained basis for at least six months.
| EPF Wage Slabs of Additional Employee | Benefit to 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 |
Note: Employees with EPF wages up to Rs 10,000 will get a proportional incentive.
