In a major push to boost private-sector employment, Prime Minister Narendra Modi announced the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) on Independence Day. The scheme promises Rs 15,000 in incentives for individuals securing their first formal job in the private sector, while also rewarding employers for creating new jobs.
With an ambitious outlay of Rs 99,446 crore, the government aims to generate over 3.5 crore jobs by July 31, 2027.
How the scheme works
For job seekers:
Anyone taking up their first private-sector job in an EPFO-registered company can receive up to Rs 15,000.
Installments: Half after 6 months of continuous service, and the rest after 12 months (with a portion going into savings).
Eligibility: Must not have been an EPFO member before August 1, 2025; monthly salary should be Rs 1 lakh or below.
For employers:
Incentives of up to Rs 3,000 per employee per month, credited directly to their bank account.
Payouts after 6, 12, 18, and 24 months of sustained employment.
Available for 2 years in most sectors, and up to 4 years in manufacturing.
Companies with fewer than 50 staff must hire at least two new employees, while larger firms must add five or more.
Why it matters
The PM-VBRY comes at a crucial time, with India’s job market seeking a formalisation boost. By linking direct incentives to EPFO enrollment, the scheme aims to expand social security coverage while reducing unemployment.
Economists note that this could encourage more young professionals to enter formal jobs over gig or informal work, while giving industries a reason to expand hiring.
If implemented effectively, the scheme could help India’s labour market take a big leap toward formalisation, stability, and inclusivity.