Over 70 lakh employed under PM-VBRY so far, say PM; transfers Rs 2,400-cr sops for 15 lakh jobs
The Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) has benefited over 70 lakh people since its launch on August 15, 2025.
The Union government disbursed incentives worth Rs 2,400 crore to support approximately 15 lakh new jobs in a recent tranche.
Around 10 lakh beneficiaries have already received incentives after completing the mandatory six-month employment milestone.
Women account for approximately 30% of PM-VBRY beneficiaries to date.
The scheme targets first-time formal-sector workers and the employers who hire them, with incentives delivered through the EPFO (Employees' Provident Fund Organisation) infrastructure.
PM-VBRY — Scheme Structure and Design
PM-VBRY is an Employment Linked Incentive (ELI) scheme announced in the Union Budget 2024-25 and launched on August 15, 2025. It is implemented through the EPFO and is designed to bring first-time workers into the formal economy by simultaneously incentivizing employees and employers. The scheme has two operational parts:
Key Details
- Part A (Employee Incentive): First-time EPFO-registered employees earning up to Rs 1 lakh/month receive one month's wage as incentive (maximum Rs 15,000), paid in two installments after 6 months and 12 months of continuous employment.
- Part B (Employer Incentive): Employers receive Rs 3,000/month per additional new employee for two years; manufacturing sector employers receive an additional two years of support.
- Eligibility window: new hires joining EPFO-registered establishments between August 1, 2025, and July 31, 2027.
- Employees must not have been an EPFO member or Exempted Trust member before August 1, 2025.
- Total outlay: Rs 99,446 crore.
- Target: generate 3.5 crore new jobs over two years, with approximately 1.92 crore first-time workforce entrants.
The 70 lakh beneficiary figure and Rs 2,400 crore disbursement in just 10 months after launch demonstrate rapid uptake of the scheme's formal-employment-linkage mechanism.
Employment Linked Incentive (ELI) — Concept and Policy Rationale
Employment Linked Incentives tie government subsidies directly to the creation of verifiable new jobs rather than to capital investment or sector-level targets. By routing incentives through EPFO, ELI schemes generate a digital audit trail — each new PF account represents a new formal worker. This approach addresses two structural problems simultaneously: the incentive to hire and the incentive for workers to accept formal employment (which typically comes with lower take-home pay but long-term social security benefits).
Key Details
- ELI is distinct from Production Linked Incentive (PLI) — PLI rewards output/investment; ELI rewards net headcount addition.
- EPFO data is the verification mechanism: a new Universal Account Number (UAN) confirms a first-time formal worker.
- PM-VBRY is India's first large-scale ELI scheme at the national level.
- Budget 2024-25 introduced three ELI schemes; PM-VBRY is the flagship combining all elements.
The scheme's rapid scale-up to 70 lakh beneficiaries in under a year validates the ELI design: EPFO-linked verification ensures fiscal accuracy while the direct-transfer architecture minimises intermediary leakage.
Formal vs. Informal Economy — The Formalization Imperative
India's informal economy employs an estimated 80–90% of the workforce. Workers in the informal sector lack access to provident fund, gratuity, health insurance, and other social protections. Government policy since 2016 has consistently aimed to push formalization — through Jan Dhan, GST, EPFO incentives, and now PM-VBRY — because formal employment generates tax revenue, widens social security coverage, and is measurable for policy assessment.
Key Details
- India's labour force participation rate and formal employment ratio are both below peer economies at comparable income levels.
- EPFO net subscriber additions are a commonly used proxy for formal job creation.
- Formalization is a stated objective of the Viksit Bharat 2047 vision.
PM-VBRY's design — requiring EPFO registration as a precondition for incentives — directly incentivizes the transition from informal to formal employment, making every disbursement a measurable unit of formalization.
- PM-VBRY launched: August 15, 2025 (Independence Day).
- Total scheme outlay: Rs 99,446 crore.
- Target jobs: 3.5 crore over two years (approx. 1.92 crore first-time entrants).
- Beneficiaries as of June 2026: over 70 lakh.
- Disbursed in recent tranche: Rs 2,400 crore for 15 lakh jobs.
- Beneficiaries who cleared 6-month milestone: ~10 lakh.
- Women beneficiaries: ~30% of total.
- Employee incentive cap: Rs 15,000 (one month's EPF wage), paid in two installments.
- Employer incentive: Rs 3,000/month/employee for 2 years (4 years for manufacturing).
- Eligibility window: August 1, 2025 – July 31, 2027.
- Salary ceiling for employee eligibility: Rs 1 lakh per month gross.
- Implemented via EPFO infrastructure.