PM-VBRY Scheme Awareness Gap: Big Firms Lead, Startups Lag Behind

"While 81% of employers report some awareness of the scheme, this is largely concentrated among large organisations at 83%. In contrast, start-ups and micro businesses, which stand to benefit most from hiring incentives of up to ₹3,000 per employee per month, show only 5.4% awareness," the report states.

This "clear paradox" suggests that while the initiative has reached major corporations, the message has yet to effectively penetrate the smaller enterprises that drive significant employment growth.

The comprehensive survey, which included over 1,200 employers across 23 industries, indicates that awareness does not always equate to active participation.

"Although 56% of surveyed employers plan to expand their workforce in the second half of FY26, awareness among this growth-oriented segment stands at 60.4%, pointing to an opportunity to better connect active hiring demand with the scheme," the report noted.

Interestingly, for those who are engaged, the primary driver is not immediate financial gain; instead, 51.8% of employers cited support for skill development as their main motivation, far outstripping the 18.6% who were driven by direct hiring incentives.

According to the report, "This long-term perspective also extends to workforce stability, with 39.7% of employers valuing job retention incentives to maintain consistent performance. Workforce formalisation is important for 29.9% of respondents, particularly for organisations seeking stronger compliance, structured employment practices, and improved access to formal credit channels."

Internal organisational dynamics also play a role in how the scheme is understood, with 71.7% of compensation and benefits teams being informed compared to just 44.4% of HR generalists. Sectoral gaps are equally prominent, as awareness in the FMCG sector reaches 72.2% while falling to 33.3% in educational services.

Commenting on these findings, Balasubramanian A, Senior Vice President at TeamLease Services, stated, "India's workforce stands at a pivotal juncture where transformation depends on both awareness and action. Our survey highlights that while many employers know of PM-VBRY, while 19% remain entirely unaware, creating uneven engagement across sectors. Addressing these gaps can unlock disproportionate value, enabling organisations to strengthen capability, improve retention, and shape a resilient, future-ready workforce that translates policy intent into sustainable economic and social outcomes".

To maximise the scheme's impact, the report suggests that policymakers and industry leaders should focus on structured skill enhancement and workforce formalisation to encourage broader, more sustainable participation across all sectors.

- ANI