The Union government is rolling out the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), under which first-time employees registered with the Employees’ Provident Fund Organisation (EPFO) will receive a cash incentive of up to ₹15,000, as the Centre pushes to formalise India’s young workforce.
Launched by Prime Minister Narendra Modi during his Independence Day address in 2025, the scheme carries a total outlay of ₹99,446 crore and targets the creation of more than 3.5 crore formal jobs over two years, including 1.92 crore first-time workers. Benefits apply to jobs created between 1 August 2025 and 31 July 2027.
Part A of the scheme covers first-time EPFO-registered workers earning monthly wages of up to ₹1 lakh. The ₹15,000 incentive, equivalent to one month of EPF wages, is released in two instalments. The first instalment is paid after six months of continuous service and the second after 12 months and the completion of a financial literacy programme. All payments are routed through Direct Benefit Transfer using the Aadhaar Bridge Payment System.
Part B supports employers hiring new staff, with a subsidy of up to ₹3,000 per employee per month for two years. In the manufacturing sector, employer incentives extend beyond two years to encourage sustained hiring.
At a nationwide PM-VBRY event at Vigyan Bhavan in New Delhi on 19 June 2026, Modi disbursed about ₹2,400 crore via Direct Benefit Transfer, with the first round estimated to support additional employment for more than 15 lakh persons.
Shekhar Kumar, Regional Provident Fund Commissioner-I, EPFO, Nagpur, told reporters that the disbursement is designed to bring more young Indians into the formal system from day one, with EPF and ESIC cover attached to each new hire.
The PM-VBRY replaces the earlier Employment Linked Incentive scheme and is implemented through EPFO under the Ministry of Labour and Employment. The scheme comes against the backdrop of a 9% unemployment rate among first-time job seekers and is designed to work alongside Skill India and the Pradhan Mantri Kaushal Vikas Yojana.
