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PMVBRY Unveiled: How India Aims to Create 3.5 Crore Jobs in 2 Years

The government has launched a major new employment scheme called the Pradhan Mantri Viksit Bharat Rozgar Yojana. It's designed to create over 3.5 crore jobs across the country within a two-year period. The scheme provides direct financial incentives to both new employees and the employers who hire them. This initiative follows the earlier Aatmanirbhar Bharat Rojgar Yojana which supported jobs during the COVID-19 pandemic.

Key Points: PMVBRY Scheme to Create 3.5 Crore Jobs with Rs 99,446 Crore Outlay

  • Scheme has a massive budgetary outlay of Rs 99,446 crore to boost nationwide employment
  • First-time employees can get a one-month EPF wage incentive, up to Rs 15,000
  • Employers receive up to Rs 3,000 monthly for each new job sustained over six months
  • The program specifically targets job creation in MSMEs, rural enterprises, and manufacturing
  • Registration for incentives is open from August 2025 to July 2027
2 min read

PMVBRY aims to incentivise creation of over 3.5 crore jobs over 2 years

The PMVBRY scheme offers incentives for employers and employees to boost job creation, aiming for over 3.5 crore new jobs across India in two years.

"Eligibility for the second instalment shall arise after completion of twelve months of employment and successful completion of the prescribed Financial Literacy Programme – Minister Shobha Karandlaje"

New Delhi, Dec 19

The Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) aims to incentivise creation of more than 3.5 crore jobs across the country over a period of 2 years, according to the government.

The budgetary outlay of the scheme is Rs 99,446 crore. Minister of State for Labour and Employment, Shobha Karandlaje, said in Rajya Sabha that under ‘Part A’ of the scheme, the first-time employees of both existing and new establishments shall be eligible for an incentive equivalent to one month’s Employees' Provident Fund (EPF) wage, subject to a maximum of Rs 15,000.

This incentive will be payable in two installments during the first year of employment. The first instalment, up to Rs 7,500, will be disbursed after completion of six months of continuous employment.

“Eligibility for the second instalment shall arise after completion of twelve months of employment and successful completion of the prescribed Financial Literacy Programme,” said the minister.

This second instalment will be credited to an appropriate savings instrument/saving account for a specified period. ‘Part B’ incentivises employers by providing up to Rs 3,000 per month for each additional employment sustained for at least six months.

The Union Cabinet, on July 1 2025, approved the Employment Linked Incentive (ELI) Scheme, titled PMVBRY, to promote employment generation, enhance employability, and strengthen social security across all sectors including MSMEs and rural enterprises, with a particular focus on the manufacturing sector.

The incentives under the scheme are applicable to jobs created during the two-year registration period commencing from August 1, 2025 and ending on July 31, 2027.

The Aatmanirbhar Bharat Rojgar Yojana (ABRY), was launched with effect from October 1, 2020, to incentivise employers for creation of new employment and restoration of loss of employment during Covid-19 pandemic.

“The terminal date for registration of beneficiaries was 31.03.2022. The beneficiaries registered upto March 31, 2022 received the benefits for 2 years from the date of registration under the scheme. Since the inception of the scheme, as on 31.03.2024, benefits have been provided to 60.49 lakh beneficiaries in the country,” informed the minister.

- IANS

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Reader Comments

P
Priya S
The financial literacy program condition for the second installment is a great addition. It's not just about giving money, but building long-term financial security for our youth. However, I hope the scheme has strong monitoring to prevent misuse by employers just claiming incentives without providing real, sustainable jobs.
R
Rohit P
Nearly 1 lakh crore rupees is a huge amount. While the intent is good, we have seen similar schemes in the past. The key question is quality of jobs - will these be permanent positions with growth prospects, or just short-term contractual work? The success of ABRY with 60 lakh beneficiaries gives some hope, but scale is much larger now.
S
Sarah B
As someone who recently started a small business, the employer incentive of ₹3000 per month for each new hire sustained for 6 months could be a real game-changer. It lowers the initial risk of expanding the team. Hope the application process is simple and online.
V
Vikram M
Good step, but the focus seems heavily on formal sector. What about the vast informal sector which employs most Indians? Also, the two-year registration window (Aug 2025-July 2027) is tight. Industries need time to plan expansion and hiring. Hope there is awareness campaigning in regional languages.
K
Kavya N
Finally a scheme that incentivizes both employee AND employer! The two-installment structure for the employee benefit is practical. The first ₹7500 after 6 months helps with initial settling-in costs, and the second part locked in a savings instrument promotes good habits. Thumbs up! 👍

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