Pradhan Mantri Viksit Bharat Rojgar Yojana Completes One Year

Pradhan Mantri Viksit Bharat Rojgar Yojana Completes One Year

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Why in News

  • The Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY) completed its first year of operation on 1st August 2026.
  • This milestone highlights India's ongoing effort to create more formal jobs and expand social security benefits for workers.

Key Facts About PM-VBRY

  • The PM-VBRY scheme encourages first-time jobs and motivates companies to hire more staff by offering financial incentives to both workers and employers.
  • The Employees' Provident Fund Organisation (EPFO) manages this scheme through an online process to bring more informal workers into the formal workforce.
  • The government introduced the initiative in August 2025 to run from 1st August 2025 until 31st July 2027 with a total outlay of ₹99,446 crore.
  • This program aims to create jobs for over 3.5 crore people, including 1.92 crore first-time employees across the country.
  • By linking benefits to EPFO accounts, the government expands social protection, focusing specially on factory jobs and growing industrial sectors.
  • The scheme also supports the National Manufacturing Mission by strengthening India's industrial workforce with skilled and formal workers.
  • The financial assistance model splits into two parts to help both new workers and hiring companies directly.
  • First-time workers earning up to ₹1 lakh per month get a one-time cash incentive equal to one month of EPF wages, capped at ₹15,000.
  • The government pays the first portion of this incentive after six months of work, and releases the second portion after twelve months once the worker finishes a basic financial literacy course.
  • The system deposits part of this money into a dedicated savings account to help young workers build long-term savings.
  • Employers get up to ₹3,000 per month for two years for every new eligible employee they hire and retain for at least six months.
  • This incentive lowers hiring expenses for companies, and factories get extended support for a third and fourth year.

Impact of PM-VBRY

  • During its first year, the scheme encouraged businesses to generate new positions and brought millions of new workers under official EPFO social security.
  • More than 72 lakh first-time employees joined the formal labor force since August 2025, while over 15 lakh beneficiaries received direct payout benefits.
  • Women account for nearly 30% of total scheme beneficiaries, which boosts female participation in the formal labor market.
  • The government manages the entire scheme digitally using Aadhaar verification, Universal Account Numbers (UAN), electronic returns, and face scanning on the UMANG App.
  • Money goes straight to workers' Aadhaar-linked bank accounts using Direct Benefit Transfer (DBT), allowing real-time tracking of overall progress.
  • Joint field teams from the EPFO, Employees' State Insurance Corporation (ESIC), and Chief Labour Commissioner (CLC) conduct local awareness drives to help more people enroll.

Conclusion

  • The PM-VBRY scheme plays a key role in expanding formal jobs and protecting Indian workers through social safety nets.
  • By rewarding new workers and helping employers, the program speeds up job growth, financial inclusion, and workplace safety.
  • The digital system built on EPFO ensures that payments remain fast, clear, and direct.
  • As India moves towards Viksit Bharat 2047, programs like this will help turn India's young population into strong, long-term economic growth.