The Indian government has unveiled the PM Viksit Bharat Rozgar Yojana (PM-VBRY), a strategic initiative aimed at enhancing employment opportunities across the nation. This scheme, previously known as the Employment-Linked Incentive (ELI) scheme, was sanctioned by the Union Cabinet with a significant budget of Rs 99,446 crore. Scheduled to commence on August 1, 2025, PM-VBRY is poised to transform the employment landscape in India by incentivizing both employees and employers.
The scheme specifically targets first-time employees registered with the Employees' Provident Fund Organisation (EPFO). These employees will receive a one-time incentive of Rs 15,000, distributed in two installments. The first installment will be provided after six months of continuous service, while the second will be released after 12 months, contingent upon the completion of a financial literacy program by the employee. This initiative not only aims to provide immediate financial support but also encourages the habit of saving among the workforce.
A portion of the incentive will be deposited into a savings instrument or account, which can be accessed by the employee at a later date. The scheme is designed to benefit individuals with salaries up to Rs 1 lakh, thereby covering a significant portion of the workforce. The government has also introduced incentives for employers to encourage the creation of new jobs. Employers will receive up to Rs 3,000 per month for two years for each additional employee hired, provided the employment is sustained for at least six months.
To avail of the benefits under PM-VBRY, EPFO-registered establishments must hire a minimum of two additional employees if they have fewer than 50 employees, or five additional employees if they have 50 or more employees. This hiring must be sustained for at least six months. Payments to first-time employees will be made through the Direct Benefit Transfer (DBT) mode using the Aadhar Bridge Payment System (ABPS), ensuring transparency and efficiency. Employers will receive their incentives directly into their PAN-linked accounts.
The scheme aims to create over 3.5 crore jobs in the country over a two-year period, with 1.92 crore beneficiaries being first-time entrants into the workforce. The benefits of the scheme will apply to jobs created between August 1, 2025, and July 31, 2027. This ambitious target underscores the government's commitment to addressing unemployment and fostering economic growth. The focus on financial literacy and savings is a commendable step, but its impact will largely depend on the quality and accessibility of the financial literacy programs provided.
The PM-VBRY is reminiscent of previous employment schemes launched by the Indian government, such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which provided a legal guarantee for at least 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. While MGNREGA focused on rural employment, PM-VBRY is more comprehensive, targeting both urban and rural sectors and emphasizing the manufacturing industry.
The launch of PM-VBRY has been met with positive reactions from various stakeholders. Union Minister Dr. Mansukh Mandaviya emphasized the importance of collaboration between labor and industry for the greater good of the nation's workforce and economy. He assured that procedural formalities under the scheme have been simplified to ensure ease of access and encourage wide participation. Industry leaders have also welcomed the scheme.
Dr. Prabodh Mohanty, President of the Utkal Chamber of Commerce and Industry Limited (UCCIL), highlighted the Chamber's proactive stance in empowering local businesses and fostering economic growth. Maushumi Lata Padhi, Regional PF Commissioner, delivered comprehensive presentations on the benefits of the ELI Scheme, encouraging entrepreneurs to leverage this beneficial government initiative. The scheme's focus on the manufacturing sector is particularly noteworthy, as it aims to revitalize this critical area of the economy.
The PM-VBRY also aligns with the government's broader economic goals, including the promotion of financial literacy and savings among employees. By integrating these components, the scheme seeks to promote long-term financial stability for employees. The government has emphasized the importance of ensuring that the incentives reach the intended beneficiaries without bureaucratic delays, which will be crucial for the scheme's success.
While the PM-VBRY presents a promising opportunity for employment generation, its success will depend on effective implementation and monitoring. Ensuring that the incentives reach the intended beneficiaries without bureaucratic delays will be crucial. Additionally, the focus on financial literacy and savings is a commendable step, but its impact will largely depend on the quality and accessibility of the financial literacy programs provided.
