Introduction
India’s vision of Viksit Bharat@2047 emphasizes employment generation as a cornerstone of development. To accelerate formal job creation, the Government of India announced the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) in the Union Budget 2024–25. Implemented by the Ministry of Labour and Employment through the Employees’ Provident Fund Organisation (EPFO), the scheme incentivizes both employees and employers, particularly in labour‑intensive manufacturing sectors.
Objectives of the Scheme
The PMVBRY has been designed to stimulate sustained employment creation, formalize the workforce, and enhance employability.
- Part A – First Timer: One‑time incentive up to ₹15,000 for employees joining EPFO/ESIC for the first time. This is paid in two instalments — ₹7,500 after six months and the balance after twelve months, subject to completion of a financial literacy course.
- Part B – Employers: Incentives to establishments for creating additional jobs. Employers receive monthly benefits for each new employee hired, with support lasting two years across all sectors and extended to four years for manufacturing industries.
Together, these measures aim to foster a dynamic, inclusive, and formal labour market that particularly benefits India’s youth.
Applicability
The scheme applies to establishments registered under the EPF & MP Act, 1952, including exempted establishments maintaining their own provident fund trusts.
Key timelines:
- Effective date: 1 August 2025
- Registration period: 1 August 2025 – 31 July 2027
Baseline determination:
- Existing establishments: Average number of employees between August 2024 and July 2025.
- New establishments: Baseline fixed at 20 employees.
Employers must meet threshold criteria to qualify: at least two additional jobs for establishments with fewer than 50 employees, and at least five for those with 50 or more.
How to Apply for PMVBRY
Applying for the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) is designed to be simple and fully digital, ensuring transparency and ease of compliance. Employers and employees follow slightly different steps, but the process is integrated through the official portal.
For Employers:
- Visit the official PMVBRY portal: pmvbry.labour.gov.in (pmvbry.labour.gov.in in Bing).
- Complete the online registration by providing PAN, GSTIN, EPFO/ESIC registration details, and other required business information.
- Upload details of newly hired employees, including Aadhaar and bank account information.
- Submit declarations confirming compliance with EPFO/ESIC filings and scheme guidelines.
- Track application status and incentive disbursement directly through the portal dashboard.
For Employees:
- Employees do not need to apply separately. Their details are uploaded by the employer.
- Aadhaar verification and bank account linkage ensure eligibility.
- Once verified, employees automatically become part of the scheme and gain access to social security benefits.
This streamlined process ensures that employers can quickly register and claim incentives, while employees are seamlessly integrated into the formal workforce without additional paperwork.
Benefits of PMVBRY
For Employees (Pointers + Para)
- Financial Support: One‑time incentive up to ₹15,000, encouraging retention in formal jobs.
- Social Security: Coverage under EPFO/ESIC ensures provident fund and health benefits.
- Skill Development: Mandatory financial literacy course equips employees with essential money management skills.
Together, these benefits make formal employment more attractive and sustainable for new entrants.
For Employers (Pointers)
- Incentives per additional employee per month:
- Up to ₹1,000 for wages ≤ ₹10,000 (10% of EPF wage).
- ₹2,000 for wages between ₹10,000 – ₹20,000.
- ₹3,000 for wages up to ₹1,00,000.
- Extended support for manufacturing sector (4 years).
- Reduced hiring costs and simplified compliance through a single‑window portal.
For the Economy (Para only)
At a macro level, PMVBRY strengthens India’s organized sector, expands the social security net, and contributes to GDP growth by increasing workforce participation. It is a step toward inclusive development under the vision of Viksit Bharat@2047.
Incentive Payment Mechanism
Payments under the scheme are made through Direct Benefit Transfer (DBT). Employees receive incentives directly into Aadhaar‑seeded bank accounts, while employers receive payments into PAN‑linked accounts. In cases where multiple establishments share the same PAN, a single nominated account is used. Incentives are disbursed within 45 days of fulfilling eligibility conditions and filing ECRs. However, payments cease if employees exit, establishments close, or fraudulent activity is detected.
Compliance and Safeguards
To maintain integrity, the scheme incorporates robust safeguards:
- Fraud Detection: IT‑based SOPs and cross‑verification with GST, CBDT, MCA, ESIC, and other portals.
- Penalty Clause: Strict action against establishments indulging in fraudulent claims.
- Monitoring:
- A Steering Committee chaired by the Secretary, Ministry of Labour and Employment provides policy direction.
- An Executive Committee chaired by the CPFC meets monthly to ensure smooth implementation.
This dual‑layered governance structure ensures accountability and responsiveness.
Special Provisions
Exempted establishments are also eligible but must file monthly returns with EPFO and ensure Aadhaar‑authenticated UANs for all employees. Seasonal industries enjoy flexibility in filing ECRs for first‑time employees, recognizing the unique nature of their operations. For calculation purposes, averages and baselines are rounded to the nearest integer, simplifying compliance.
Grievance Redressal and IT Support
The PMVBRY portal provides a dedicated grievance redressal mechanism. Employers and employees can raise complaints online, with escalation procedures in place for unresolved issues. Technical support is available for login problems, password resets, and data uploads. By integrating grievance handling with IT support, the scheme ensures transparency and trust.
Conclusion
The Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) is a landmark initiative that balances the needs of employers and employees while advancing India’s employment agenda. For employers, it reduces hiring costs and encourages workforce expansion. For employees, it provides financial support, social security, and financial literacy. For the nation, it strengthens the organized sector and contributes to sustainable economic growth.
By combining incentives, compliance safeguards, and digital transparency, PMVBRY represents a forward‑looking approach to job creation — one that empowers individuals, supports businesses, and drives India’s economic transformation.