PM Viksit Bharat Rozgar Yojana (PM-VBRY 2026): Complete Guide to India’s Employment Boost Scheme

PM Viksit Bharat Rozgar Yojana (PM-VBRY 2026): The Government of India has introduced the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), a major Central Sector employment scheme designed to encourage job creation across various sectors, particularly the manufacturing sector. The initiative aims to create large-scale employment opportunities, improve employability among youth, and strengthen social security coverage for workers.

Approved by the Union Cabinet on 1 July 2025, the scheme will remain operational from 1 August 2025 to 31 July 2027. With a budget allocation of 99,446 crore, PM-VBRY is expected to encourage the creation of more than 3.5 crore jobs over the next two years.

The scheme will be implemented by the Ministry of Labour and Employment through the Employees’ Provident Fund Organisation (EPFO).

Objectives of PM-VBRY

The scheme has been designed with several important objectives:

• Promote employment generation across sectors
• Support youth entering formal employment for the first time
• Increase employability
• Strengthen social security systems
• Encourage formal workforce participation
• Provide incentives to employers for creating additional jobs
• Support the vision of a developed India by 2047

PM-VBRY Part A: Benefits for Employees

Part A of the scheme provides financial incentives directly to first-time employees joining formal employment.

Employees who join an EPF-covered establishment for the first time between 1 August 2025 and 31 July 2027 will receive an incentive equal to one month’s salary, subject to a maximum of 15,000.

The incentive amount will be paid in two installments.

First Installment

Employees will receive the first payment after:

• Completing six continuous months with the same employer

Second Installment

Employees will receive the second installment after:

• Completing twelve months of service
• Completing the Financial Literacy Course available on the EPFO portal

Financial Literacy Course

The Financial Literacy Course aims to increase awareness among employees regarding:

• Saving habits
• Insurance
• Cyber security
• Social security
• Personal financial planning

The initiative is intended to help young employees become financially responsible and aware of long-term financial security.

Eligibility Criteria for Employees

Employees must meet the following requirements:

• Must be joining employment for the first time
• Must be covered under EPFO
• The monthly salary should not exceed 1 lakh
• Employment should begin between 1 August 2025 and 31 July 2027
• Must generate, activate, and authenticate UAN through face authentication on the UMANG app

Savings Component Under PM-VBRY

To promote saving habits, the government has introduced an additional savings component.

Part of the second installment will be placed in a government-approved savings instrument for a specified period. Beneficiaries can withdraw the amount after maturity.

This feature encourages long-term savings among employees.

PM-VBRY Part B: Employer Incentives

Part B focuses on encouraging employers to create additional employment opportunities.

Employers hiring additional employees with salaries up to 1 lakh per month will receive incentives.

Incentive Duration

Manufacturing Sector:

• Incentives for four years

Other Sectors:

• Incentives for two years

Employer Incentive Structure

For each additional employee:

Salary up to 10,000

• 10% of salary as an incentive

Salary between 10,001 and 20,000

• 2,000 per month

Salary above 20,000

• 3,000 per month

These incentives will be paid every six months based on continuous employment.

Employer Eligibility Conditions

For establishments with fewer than 50 employees:

• A minimum of two additional employees must be hired

For establishments with 50 or more employees:

• Minimum five additional employees must be hired

The additional jobs must be maintained continuously for at least six months.

Baseline Employment Criteria

The baseline employee count will be determined by the average employment level over the 12 months before 1 August 2025.

For businesses operating for less than 12 months, the average employee count from the date of establishment until August 2025 will be considered.

For establishments created after 1 August 2025, the baseline will be fixed at 20 employees.

EPF Act-exempted establishments will also be eligible under the scheme.

Payment Process

Employee incentives:

• Paid directly through DBT (Direct Benefit Transfer)

Employer incentives:

• Paid into PAN-linked bank accounts

How to Apply for PM-VBRY 2026

• Visit the official portal: PM‑VBRY Portal
• Register with EPFO details.
• Complete UAN activation through UMANG face authentication.
• Submit employee or employer information.
• Complete the required formalities and track the application status.