Centre Unveils ₹1 Lakh Crore PM-VBRY Scheme to Boost Formal Employment Nationwide

Bhubaneswar: The Union Ministry of Labour and Employment has announced the launch of the PM Viksit Bharat Rozgar Yojana (PM-VBRY), a major employment initiative aimed at creating over 3.5 crore formal sector jobs across India. The scheme, which will run from August 1, 2025, to July 31, 2027, comes with an allocation of ₹1 lakh crore, marking one of the government’s largest employment-linked initiatives in recent years.

As part of the scheme, financial incentives will be provided to both employees and employers. First-time employees entering the formal workforce through registration with the Employees’ Provident Fund Organisation (EPFO) and earning up to ₹1 lakh per month will be eligible to receive up to ₹15,000 as monthly incentives. These will be disbursed in two instalments—after six months and one year of continuous employment—alongside efforts to promote long-term savings and financial literacy.

Employers too will receive government support, with incentives ranging from ₹1,000 to ₹3,000 per employee based on salary slabs. To qualify, businesses will need to show job creation: companies with fewer than 50 workers must hire at least two additional employees, while those with 50 or more must add five or more jobs. The manufacturing sector will enjoy extended benefits under the scheme for up to four years.

Speaking at a launch event in Bhubaneswar, Regional PF Commissioner–II Maushumi Lata Padhi said that the scheme underscores the government’s commitment to expanding formal employment, strengthening social security, and driving financial inclusion. She added that PM-VBRY is a crucial step toward achieving Prime Minister Narendra Modi’s vision of a developed India by 2047.

Incentives for employees will be transferred directly into their accounts via the Aadhaar Bridge Payment System (ABPS), ensuring transparency and efficiency. Employers will receive funds through their PAN-linked bank accounts, with the government leveraging digital platforms to monitor and manage disbursements seamlessly.

Also present at the event were Enforcement Officer-cum-Nodal Officer Alekh Ch. Sahoo, Swosti Group Assistant Vice President Nihar Ranjan Sahoo, and GM (Corporate Communication) Nihar Ranjan Sahoo, who expressed confidence that the initiative would encourage formalisation in sectors that have traditionally remained informal or under-regulated.

The PM-VBRY scheme is expected to play a transformative role in reshaping India’s employment landscape, offering financial support, formal job opportunities, and social protection to millions, while simultaneously fostering economic growth and workforce empowerment.