PM-VBRY: One Year of Employment-Linked Social Security

What is PM-VBRY?

The Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY) is an employment-linked incentive scheme announced in August 2025 to promote first-time employment and support additional job creation in India's formal sector.

Key Objectives

• Generate employment for more than 3.5 crore people, including 1.92 crore first-time employees
• Expand social security coverage through EPFO-linked formal employment
• Support labour-intensive manufacturing and new industries
• Complement the National Manufacturing Mission

Implementation Framework

Two-Part Incentive Structure

Part A: Support to First-Time Employees

• Eligibility: Employees earning up to ₹1 lakh per month
• Incentive: One-time payment equal to one month's EPF wage, capped at ₹15,000
• Disbursement:
• First instalment after 6 months of service
• Second instalment after 12 months + completion of financial literacy programme
• A portion deposited in designated savings instrument for long-term financial security

Part B: Support to Employers

• Incentive: Up to ₹3,000 per month for 2 years per eligible employee
• Condition: Employee must earn up to ₹1 lakh and be retained for at least 6 months
• Manufacturing Sector: Support continues during 3rd and 4th years

Impact in First Year (August 2025 - August 2026)

• 72+ lakh first-time employees joined the formal workforce
• 15+ lakh beneficiaries received employment-linked incentives
• ~30% women beneficiaries, promoting female participation in formal employment
• Expanded EPFO-based social security coverage across sectors

Digital Implementation Framework

The scheme operates through a fully digital, EPFO-linked platform:

• Aadhaar Authentication for identity verification
• Universal Account Numbers (UANs) for seamless account management
• Electronic Challan-cum-Return (ECR) filings for compliance
• Face Authentication Technology via UMANG App
• Direct Benefit Transfer (DBT) for transparent benefit delivery
• Real-time monitoring through PM-VBRY portal

Institutional Outreach

Cross-functional implementation teams comprising:

• EPFO officials
• Employees' State Insurance Corporation (ESIC)
• Chief Labour Commissioner (CLC)

Nationwide awareness campaigns ensure grassroots participation.

Constitutional and Policy Context

• Article 41 (Directive Principles): Right to work, education, and public assistance
• Social Security under the Fourth Schedule and labour laws
• Aligns with Viksit Bharat 2047 goals
• Complements National Manufacturing Mission

Significance for India

1. Workforce Formalisation: Converts informal workers to formal employment
2. Financial Inclusion: EPF coverage ensures retirement security
3. Women Empowerment: 30% female participation promotes gender equality
4. Manufacturing Growth: Supports Make in India and industrial expansion
5. Demographic Dividend: Converts young population into productive workforce

Conclusion

PM-VBRY represents a significant step towards expanding formal employment and securing India's workforce. Its EPFO-linked digital framework ensures transparency and efficient delivery, while incentivising both demand (employees) and supply (employers) sides of the labour market.