Pradhan Mantri Viksit Bharat Rozgar Yojana 2025: ₹1 Lakh Crore Scheme to Create 3.5 Crore Jobs

In response to pressing employment challenges, the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) was launched by Prime Minister Narendra Modi on Independence Day, August 15, 2025. With a substantial investment of ₹1 lakh crore, the scheme is designed to catalyze formal job creation and support first-time private-sector employees. Spread across two years, it aims to generate over 3.5 crore jobs by incentivizing both employers and workers.

Dual-Pronged Support: Employees and Employers

PM-VBRY operates through a dual incentive model:

• Employee Incentives (Part A):
  Designed for youth entering the workforce for the first time, employees registered with EPFO and earning up to ₹1 lakh per month are eligible for a support package of ₹15,000. This amount is disbursed in two installments:
  • ₹7,500 after six months of continuous employment.
  • ₹7,500 after twelve months, with a portion of the second installment directed toward a savings instrument promoting financial security.
    A mandatory financial literacy program must be completed to receive the full benefit.
• Employer Incentives (Part B): Employers gain additional support for creating formal jobs. For every eligible employee (earning up to ₹1 lakh/month, contributing to EPFO for at least six months), employers receive ₹3,000 per month as a hiring incentive for up to two years. Manufacturing sector employers may receive an extended incentive for up to four years. To qualify, employers must increase their workforce by at least two new employees (if their baseline count is below 50) or five (if above 50).

Key Features and Implementation

Timeline and Budget
The scheme runs from August 1, 2025, to July 31, 2027, with a budget of approximately ₹99,446 crore to ₹1 lakh crore.

Target Outcomes
The PM-VBRY is structured to:

• Encourage formalization of employment.
• Provide stability and financial backing to first-time employees.
• Spur increased hiring across sectors, especially manufacturing.
  The scheme targets 3.5 crore new jobs, especially benefiting 1.92 crore first-time private-sector employees.

Institutional Framework
Implemented via the Employees’ Provident Fund Organisation (EPFO) under the Ministry of Labour & Employment, the scheme operates on EPFO’s digital infrastructure. A dedicated portal and help desks at EPFO offices support awareness and grievance redressal.

Benefits and Strategic Impact

1. Youth Inclusion: By offering wage-related incentives and financial literacy, the scheme makes formal employment more attractive to fresh entrants.
2. Employer Participation: Businesses are motivated to hire more through incentives, easing employment costs and encouraging job growth.
3. Financial Security: Splitting employee benefits across service milestones fosters continuity and a saving culture.
4. Economic Formalization: Encouraging EPFO-linked employment supports social security coverage and transparency.
5. Manufacturing Focus: Extended incentives for manufacturing positions boost sectoral growth and industrial employment.
6. Awareness and Reach: Seminars and EPFO support centers, like those in Ludhiana, have been instrumental in educating employers and job-seekers alike.

Challenges and Considerations

• Awareness and Uptake: Ensuring widespread awareness among small enterprises and youth remains a challenge.
• Retention: The scheme only supports up to two years—even post-incentive retention and job quality will be key.
• Administrative Load: EPFO must manage application processing, eligibility verification, and disbursals efficiently.
• Budget Management: Continued funding and budget oversight are crucial for the scheme’s sustainability.
• Equity in Access: Ensuring equitable access for rural youth and informal workers transitioning to formal jobs is essential.

A Game-Changer for India’s Employment Landscape

In sum, the Pradhan Mantri Viksit Bharat Rozgar Yojana is a bold, strategically crafted initiative aimed at transforming India’s workforce by:

• Reducing entry barriers for youth.
• Strengthening formal employment systems.
• Expanding social security through EPFO coverage.
• Encouraging economic expansion through incentivized hiring.

By putting both employers and young job-seekers at the core of its design, PM-VBRY demonstrates a forward-looking approach to resolving structural unemployment and fostering an inclusive economy.

Sources:

1. https://economictimes.indiatimes.com/wealth/save/pradhan-mantri-viksit-bharat-rozgar-yojana-how-much-employee-and-employer-will-get-under-employment-linked-incentives-scheme/articleshow/123363447.cms?utm_
2. https://timesofindia.indiatimes.com/city/ludhiana/ludhiana-pf-office-holds-awareness-seminar-on-pm-viksit-bharat-rozgar-yojana-/articleshow/123287034.cms?utm_
3. https://economictimes.indiatimes.com/news/india/labour-minister-mansukh-mandaviya-urges-employers-to-utilise-jobs-incentive-scheme/articleshow/123370576.cms?utm_

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