Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY)

Launched by the Prime Minister.
Aims to boost formal employment in India by providing direct cash incentives to eligible employees and employers.
Target: Creation of over 3.5 crore jobs in two years.

Objective / Aim

Encourage first-time employment in the formal sector.
Promote job creation in all sectors, with a focus on manufacturing.
Support financial inclusion and savings habit via part of incentives deposited in savings instruments.

Key Features of the Scheme

Part A – Support to First-Time Employees

Target: First-time EPFO-registered employees.
Incentive: One month EPF wage up to ₹15,000, payable in two installments.
Eligibility: Employees with salaries up to ₹1 lakh/month.
Payment Schedule:

o1st installment: After 6 months of service.

o2nd installment: After 12 months and completion of a financial literacy program.

A portion of the incentive is kept in a savings instrument for a fixed period to encourage long-term saving.

Part B – Incentives for Employers

Target: Employers creating additional employment, especially in manufacturing.
Incentive: Up to ₹3,000 per month for each additional employee, sustained for at least 6 months.
Special Provision: Manufacturing sector incentives extended to 3rd and 4th years.
Eligibility: New employees with salaries up to ₹1 lakh/month.

Payment Mechanism

Employees (Part A): Paid via Direct Benefit Transfer (DBT) using Aadhaar Bridge Payment System (ABPS).
Employers (Part B): Paid directly into their PAN-linked accounts.

Significance

Promotes formalization of the labour market.
Supports youth employment and reduces informal/unorganized sector dependency.
Encourages financial literacy and savings habits among first-time employees.
Incentivizes private sector hiring, especially in manufacturing, aiding economic growth.

Pradhan Mantri Viksit Bharat Rozgar Yojana (pmvbry)