Team Siliconindia

• PM-VBRY aims to create over 3.5 crore formal jobs by June 2027, with 1.92 crore first-time workers expected to benefit.
• Offers up to  Rs 15,000 for eligible employees and  Rs 1,000– Rs 3,000/month to employers hiring and retaining new recruits.
• All payments routed via Aadhaar-based DBT system to ensure accountability and direct benefit delivery.

The Union Government will introduce the PM Viksit Bharat Rozgar Yojana (PM-VBRY) from August 1, 2025, with a fresh thrust to generate formal employment in India. A rechristened form of the Aatmanirbhar Bharat Rozgar Yojana (ABRY), the scheme has the vision to enable the generation of more than 3.5 crore formal jobs by June 2027, with 1.92 crore first-generation workers likely to gain from it.

Under Part A, those entering the regular workforce for the first time and earning up to Rs 1 lakh per month will be given a direct benefit of one month's earnings (limited to Rs 15,000). This benefit will be disbursed in two stages after six and twelve months of continuous service provided on completion of a module of financial literacy.

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Part B is aimed at employers, and they are given a monthly reward of Rs 1,000 to Rs 3,000 per new employee retained for a minimum of six months. Manufacturers' employers are eligible for this incentive for a maximum of four years. Enterprises need to employ at least two new employees (if their staff count is less than 50) or five new employees (if their staff count exceeds 50), as documented in their EPFO returns.

All payments whether to employers or workers would be made through Direct Benefit Transfer (DBT), utilizing Aadhaar-linked bank accounts under the Aadhaar-Based Payment System (ABPS) for transparency and accountability.

The Labour Ministry has asked the states to coordinate their employment-linked programs with PM-VBRY so they have wider reach. In the meantime, EPFO field offices in cities such as Bhagalpur and Vadodara have started awareness drives to inform stakeholders on scheme benefits and going digital.

Focused on both social protection and workforce formalisation, PM-VBRY is being framed as a transformational program to re-orient India's employment landscape and assist millions of new entrants in the formal sector.