Introduction
India’s demographic dividend can become a major driver of economic growth only when youth are productively employed. To accelerate formal employment and strengthen social security coverage, the Government of India launched the Prime Minister Viksit Bharat Rozgar Yojana (PM-VBRY). The scheme provides financial incentives to both first-time employees and employers, encouraging job creation in the formal sector while expanding coverage under the Employees’ Provident Fund Organisation (EPFO).
Why in News?
PM-VBRY has completed its first year of implementation with encouraging outcomes:
- Over 72 lakh first-time employees have joined the formal workforce.
- Nearly 30% of beneficiaries are women, promoting inclusive employment.
- The scheme aims to generate more than 3.5 crore employment opportunities, including 1.92 crore first-time employees.
Overview of PM-VBRY
| Particular | Details |
|---|---|
| Scheme Name | Prime Minister Viksit Bharat Rozgar Yojana (PM-VBRY) |
| Ministry | Ministry of Labour & Employment |
| Launch | 1 August 2025 |
| Duration | 1 August 2025 – 31 July 2027 |
| Total Outlay | ₹99,446 crore |
| Implementation Agency | Employees’ Provident Fund Organisation (EPFO) |
| Benefit Mode | Direct Benefit Transfer (DBT) |
| Authentication | Aadhaar-based |
Objectives
- Promote formal employment.
- Encourage hiring of first-time job seekers.
- Expand social security coverage through EPFO.
- Incentivize employers to create additional jobs.
- Increase women’s participation in the formal workforce.
- Support the vision of Viksit Bharat 2047.
Key Features
1. Incentives for First-Time Employees
Eligible first-time employees:
- Monthly salary up to ₹1 lakh
- Receive financial incentive up to ₹15,000
- Encourages transition from informal to formal employment.
- Improves financial security and savings.
2. Incentives for Employers
Employers hiring eligible additional workers receive:
- Up to ₹3,000 per employee per month
- Applicable for eligible new EPFO registrations
- Encourages expansion of workforce in organized sector.
3. Digital Implementation
The scheme operates through:
- Fully digital platform
- Aadhaar authentication
- EPFO integration
- Direct Benefit Transfer (DBT)
- Transparent and paperless processing
Eligibility
Employees
- First-time formal employment
- Registered under EPFO
- Monthly wage up to ₹1 lakh
- Aadhaar-linked bank account
Employers
- Must create additional eligible employment
- Compliance with EPFO regulations
- Eligible establishments under scheme guidelines
Achievements (First Year)
- 72+ lakh first-time employees enrolled.
- Nearly 30% women beneficiaries.
- Strengthened formal employment ecosystem.
- Expanded social security coverage.
- Increased EPFO registrations across sectors.
Significance
Employment Generation
Supports large-scale formal job creation.
Social Security
Extends EPF benefits, pension and insurance coverage.
Economic Growth
Boosts household income, consumption and productivity.
Women’s Empowerment
Greater female participation in formal employment.
Ease of Doing Business
Reduces hiring costs through employer incentives.
Digital Governance
Transparent implementation using Aadhaar and DBT.
Challenges
- Low awareness among MSMEs.
- Informal sector still dominates employment.
- Compliance burden for small enterprises.
- Need for sustained job creation beyond incentives.
- Ensuring long-term retention of employees.
Way Forward
- Increase awareness among employers and youth.
- Strengthen skilling initiatives alongside employment incentives.
- Promote labour-intensive manufacturing and services.
- Encourage women’s workforce participation through supportive workplace policies.
- Improve digital literacy for easier access to benefits.
- Enhance monitoring to prevent misuse while ensuring timely benefit transfers.
UPSC Prelims Pointers
- Ministry: Labour & Employment
- Implemented through: EPFO
- Benefit Transfer: DBT
- Authentication: Aadhaar
- Duration: 2025–2027
- Outlay: ₹99,446 crore
- Target: 3.5+ crore employment opportunities
- First-time employees targeted: 1.92 crore
UPSC Mains Relevance
GS Paper 2
- Welfare schemes
- Government policies and interventions
- Inclusive growth
GS Paper 3
- Employment generation
- Labour reforms
- Human resource development
- Formalization of the economy
Practice MCQs
Q1. Consider the following statements regarding the Prime Minister Viksit Bharat Rozgar Yojana (PM-VBRY):
- It is implemented through the Employees’ Provident Fund Organisation (EPFO).
- First-time employees earning up to ₹1 lakh per month are eligible for incentives.
- Benefits are transferred through Direct Benefit Transfer (DBT).
Which of the statements given above is/are correct?
A. 1 only
B. 1 and 2 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: D
Explanation: PM-VBRY is implemented through EPFO, provides incentives to eligible first-time employees earning up to ₹1 lakh per month, and transfers benefits directly through DBT.
Q2. Which of the following is the primary objective of the PM-VBRY?
A. Promote exports through production incentives
B. Encourage formal employment and expand social security coverage
C. Increase agricultural productivity through subsidies
D. Provide interest-free loans to startups
Answer: B
Explanation: PM-VBRY aims to increase formal employment, encourage employers to hire additional workers, and expand social security coverage through EPFO registration.
