Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY)

A new push for employment growth

The Union Cabinet has approved the Pradhan Mantri Viksit Bharat Rozgar Yojana to support job creation, strengthen employability, and expand social security across all India. This initiative is designed to empower both employers and employees by offering targeted financial incentives to encourage workforce expansion. The Yojana covers all the sectors, including services and manufacturing, with additional benefits extended to the manufacturing sector.

Key features of the Yojana:

  • Benefits will apply to jobs created between 1 August 2025 and 31 July 2027.
  • Total planned outlay under the Yojana: INR 99,446 crore.
  • Expected jobs to be created: 3.5 crore.

Pradhan Mantri Viksit Bharat Rozgar Yojana snapshot:

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A - Incentives for first-time employees

Eligibility

  • Targets first-time employees registered with EPFO and salaries up to INR 1 lakh per month.

Incentive structure

  • Offers one month’s EPF wage (up to INR 15,000), paid in two instalments:
    • First instalment after six months of service.
    • Second instalment after 12 months of service and successful completion of a financial literacy programme.

Mode of payment

  • Payment credited directly to the employee via Direct Benefit Transfer (DBT).

B - Incentives for employers

Eligibility

  • Employers registered with EPFO.
  • Hiring new employees with salaries up to INR 1 lakh per month.

Incentive structure

  • Monthly incentives of up to INR 3,000 per additional employee.
  • Employee must be retained for at least 6 months.
  • Sector-wise incentives:
    • Non-manufacturing sector (including services): Up to INR 72,000 per eligible employee over 2 years .
    • Manufacturing sector: Up to INR 1,44,000 per eligible employee over 4 years.
  • Monthly incentives by wage slabs:
    • EPF wage of employee Monthly incentive to employer
    Up to INR 10,000 Up to INR 1,000*
    INR 10,001 – 20,000 INR 2,000
    INR 20,001 – 1,00,000 INR 3,000

Mode of payment

  • Payment directly to the employer’s PAN-linked bank account.

*Note: Incentive is proportional for EPF wages up to INR 10,000/.

How employers can make the most of the Yojana:

  • Assess your eligibility - Review the Yojana’s conditions and confirm your organisation’s eligibility. Ensure EPFO registration and meet all compliance requirements to qualify for incentives.
  • Align hiring plans strategically - Time your recruitment to fall within the Yojana’s active period. If expanding operations, factor Yojana benefits into your workforce and cost planning.
  • Maximise manufacturing sector incentives - Manufacturers can access incentives for up to four years. Use this extended window to scale operations and workforce growth effectively.

How can Grant Thornton Bharat help?

  • Eligibility assessment- We help analyse the Yojana’s benefits and determine the conditions your organisation must meet. Our team supports you in evaluating eligibility and qualification criteria specific to your business.
  • Registration, documentation and compliance - Support in preparing applications and required documents, including online submissions where applicable. We also guide discussions on forecasts and conditions to ensure ongoing eligibility.
  • Monitoring and reporting - Assistance with filing periodic returns under the Yojana. We help track employee additions and exits, incentives claimed and disbursed, and overall compliance status.
  • Incentive claim management - Support in preparing and submitting periodic claims, along with resolving any issues related to incentive processing.
  • Disbursement coordination - We work to ensure timely disbursement of approved incentives and help resolve any payment delays or mismatches.

The detailed implementation guidelines and framework for the Pradhan Mantri Viksit Bharat Rozgar Yojana are awaited. To understand how this Yojana could impact your organisation, we encourage you to connect with our experts.

We recently hosted a webinar on 8 July to help businesses decode the Pradhan Mantri Viksit Bharat Rozgar Yojana and plan their workforce strategies effectively.

Watch the recording now!