Introduction
To accelerate employment generation and formalization of the workforce, the Government of India has launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) 2025. Announced in Budget 2024–25, this scheme offers direct incentives to employers and first-time employees, with a special focus on labour-intensive manufacturing sectors. Implemented by the Ministry of Labour and Employment through EPFO, the scheme provides financial support for new job creation and upskilling. This blog outlines the eligibility criteria, registration process, incentive structure, and compliance obligations for establishments under PM-VBRY.
What Is PM-VBRY 2025?
PM-VBRY is an Employment Linked Incentive Scheme designed to promote formal job creation, improve employability, and support establishments in onboarding new workers. It complements the National Manufacturing Mission and aligns with the Viksit Bharat@2047 vision.
Scheme Structure:
- Part A – First Timer Support: One-time incentive of up to ₹15,000 for first-time EPFO contributors.
- Part B – Employer Incentive: Monthly incentives for establishments generating additional employment, with extended benefits for manufacturing units.
Who Is Eligible Under PM-VBRY?
Employees:
- First Timer: Never contributed to EPFO before joining during the scheme period (01.08.2025 to 31.07.2027).
- Re-joinee: Previously contributed to EPFO and rejoined during the scheme period.
- Eligible Employee: Gross wage < ₹1,00,000/month and EPFO contributions received for at least 6 months.
Establishments:
- Must be registered under EPFO.
- Must file ECRs regularly.
- Exempted establishments must file ECRs without contributions and maintain PF Trusts.
Employer Registration Timeline and Process
- Registration Period: 01.08.2025 to 31.07.2027.
- Existing Establishments: Deemed registered but must update PAN, GSTN, and bank details.
- New Establishments: Must register via EPFO and meet baseline employment criteria.
- Portals: Shram Suvidha Portal or ESIC Employer Portal.
Incentives for First-Time Employees (Part A)
- Eligibility: Gross wage ≤ ₹1,00,000; EPFO contributions for 6 months.
- Instalments:
- 1st: Up to ₹7,500 after 6 months.
- 2nd: Remaining amount (max ₹15,000) after 12 months and completion of Financial Literacy Course.
- Payment Mode: Direct Benefit Transfer (DBT) to Aadhaar-seeded bank account.
Incentives for Employers Creating New Jobs (Part B)
- Eligibility: Must exceed baseline employment by threshold:
- Baseline < 50 → +2 employees
- Baseline ≥ 50 → +5 employees
- Duration: 2 years (4 years for manufacturing sector)
- Payment Frequency: Every 6 months based on ECR filings
EPF Wage Slabs and Incentive Amounts
| EPF Wage Slab (₹) | Employer Incentive (₹/month) |
| ≤ 10,000 | Up to 10% of EPF wage |
| 10,000 to ≤20,000 | ₹2,000 |
| 20,000 to ≤1,00,000 | ₹3,000 |
Special Provisions for Exempted Establishments
- Must file monthly ECRs with employee details.
- Must generate Aadhaar-authenticated UANs using Face Authentication via UMANG App.
- Must submit baseline data for August 2024 to July 2025.
Fraud Prevention and Penalty Clauses
- SOPs will be used to detect fraud using IT tools and data from GST, CBIC, CBDT, MCA, ESIC, etc.
- Penalties will apply for misrepresentation or misuse.
- Incentives will cease in cases of fraud, employee exit, death, or establishment closure.
How Incentives Are Paid (DBT Mechanism)
- Employees: Paid via Aadhaar Bridge Payment System.
- Employers: Paid to PAN-linked bank account.
- Suspended Payments: Incentives accrue but are held until Aadhaar seeding is complete.
Grievance Redressal and Monitoring Framework
- Steering Committee: Chaired by Secretary, MoLE; meets quarterly.
- Executive Committee: Chaired by CPFC; meets monthly.
- Functions: Policy review, risk mitigation, budget allocation, and performance monitoring.
Key Compliance Checklist for Employers
- Register establishment and employees within scheme period.
- File ECRs with contributions for 6/12 months.
- Ensure Aadhaar authentication and UAN generation.
- Maintain PAN-linked bank account.
- Complete Financial Literacy Course for employees.
Conclusion: Why Early Registration Matters
PM-VBRY 2025 offers a unique opportunity for employers to receive financial incentives while contributing to India’s employment growth. With structured benefits for both employees and establishments, especially in the manufacturing sector, early registration and disciplined compliance can unlock significant advantages. Employers must act within the registration window and ensure accurate documentation to avoid penalties and maximize benefits under this transformative scheme.
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Disclaimer – This blog post is a general guide. It should not be considered legal advice. Consult a legal professional for more details.