PM Viksit Bharat Rozgar Yojana- What We Know About The Scheme?

Prime Minister Narendra Modi on Friday launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) a ₹1 lakh crore employment scheme.

During his Independence Day speech from the Red Fort, the Prime Minister said that the initiative aims to generate 3.5 crore jobs, with special benefits for first-time private sector employees and employers creating new jobs.

"My country's youth, today is 15th August, and on this very day, we are launching a scheme worth ₹1 lakh crore for the youth of our country. From today, the Pradhan Mantri Viksit Bharat Rojgar Yojana is being implemented... Under this scheme, young men and women getting their first job in the private sector will receive ₹15,000 from the government. Companies that create more employment opportunities will also be given incentive amounts. The Pradhan Mantri Viksit Bharat Rojgar Yojana will create nearly 3.5 crore new employment opportunities for the youth," the Prime Minister said.

What is Pradhan Mantri Viksit Bharat Rozgar Yojana?

A central scheme to boost jobs and formal employment, run by the Labour Ministry via EPFO.
Starts: 1 Aug 2025 • Registration window: 1 Aug 2025 - 31 Jul 2027.
Two parts:

Part A (First-Timer): up to ₹15,000 directly to a first-time EPFO contributor to help during the learning period.

Part B (Employers): cash incentive to establishments for adding and sustaining new jobs (2 years; 4 years for manufacturing).

Who can benefit?

Employees (Part A)

• You must be a "First-Timer" (never contributed to EPFO before) who joins between 1 Aug 2025 and 31 Jul 2027.
• Gross wage at joining ≤ ₹1 lakh/month.
• Must stay on payroll with EPF contributions for 6 continuous months (to get 1st instalment) and 12 months (to get 2nd instalment, within 18 months of joining).
• UAN must be created with Face Authentication (UMANG app) and bank account should be Aadhaar-seeded.
• Must complete a short Financial Literacy course (online) to unlock the 2nd instalment.

Employers (Part B)

• Any establishment covered by EPF & MP Act, 1952, including exempted trusts.
• Must increase net jobs compared to a baseline and meet a minimum threshold (explained below).
• Incentives apply only for people who join during the registration period, have gross ≤ ₹1 lakh at joining, and complete 6 months with EPF contributions.

How much money?

For First-Timers (Part A)

Total: up to ₹15,000 (equal to one month's EPF wage, capped).

Paid in 2 parts:

After 6 months: up to ₹7,500 (half of average EPF wage over those 6 months).

After 12 months: remaining amount to reach the total (after you finish the Financial Literacy course). This part is kept in a specified savings/deposit instrument for a period the ministry will notify.

For Employers (Part B)

Monthly incentive per additional employee (based on EPF wage):

• ≤ ₹10,000: 10% of EPF wage (max ₹1,000)
• ₹10,001-₹20,000: ₹2,000
• > ₹20,000: ₹3,000

Paid in lumpsum every 6 months (calculated month-wise and then summed).

Practical examples

Part A (employee):
If your average EPF wage over first 6 months is ₹14,000, you get ₹7,000 (half) after 6 months.
If your 12-month average is still ₹14,000, total entitlement is ₹14,000 → second instalment ₹7,000 (after course + 12 months).

Part B (employer):
You hire 10 eligible employees this month; by counts, Net Additional = 6.
Suppose slab totals over the 10 employees add to ₹20,000.
Pro-rata = 20,000 × 6 ÷ 10 = ₹12,000 for that month (added to your 6-month payout).

Money flow & timelines

• Disbursal mode: DBT-employees to Aadhaar-seeded bank; employers to PAN/TAN-linked account.
• When: within 45 days after you meet the conditions and file paid ECRs.
• Stops if: employee quits/dies, establishment shuts, or fraud/misuse is detected.

Exempted establishments (own PF trust)

Eligible, but must:

• File monthly ECRs (without contributions) in EPFO with employee details.
• Create Aadhaar-authenticated UANs (use UMANG Face Authentication).
• Provide Aug 2024-Jul 2025 employee data to set the baseline.

Tax & audits

Incentives are taxable under the Income-tax Act unless specifically exempted in future.

Scheme is fund-limited (overall outlay ₹99,446 crore incl. admin). Multiple audits and strict fraud checks apply.

Grievances: online portal + call centre; EPFO aims to resolve within 15 days, with escalation paths.

Quick checklists

For an employee (First-Timer)

• Joining date between 1 Aug 2025-31 Jul 2027.
• Gross ≤ ₹1 lakh at joining.
• UAN via UMANG Face Authentication; bank Aadhaar-seeded.
• Ensure employer files 6 then 12 continuous ECRs with contributions.
• Complete Financial Literacy module (to get 2nd instalment).

For an employer

• Verify your baseline and threshold; track rolling average.
• Hire during registration window; ensure gross ≤ ₹1 lakh at joining for incentive eligibility.
• Keep new hires for ≥6 months with timely ECR + contributions.
• For re-joinees, ensure Aadhaar-biometric UAN.
• Expect payouts every 6 months; maintain clean records to avoid pauses.