India’s workforce landscape is set for a major transformation with the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) — a landmark initiative announced in the Union Budget 2024–25. Designed to accelerate employment generation and strengthen workforce formalization, the scheme brings a dual advantage to both employers and employees, while promoting transparent, compliant, and digitally integrated systems.

A New Era of Employment Incentives

The PMVBRY, implemented through the Employees’ Provident Fund Organisation (EPFO), provides structured incentives aimed at bridging the gap between job seekers and job creators.

For Employees – The scheme supports first-time job seekers entering the formal workforce through financial incentives and structured literacy programs.

For Employers – It encourages sustained job creation, especially in the manufacturing sector, by offering monthly incentives for each eligible employee hired.

This mutually beneficial framework aligns with the government’s larger goal of promoting a “Developed Bharat” through employment-led growth.

Incentives Under PMVBRY

The scheme is divided into two parts — one for employees and one for employers — ensuring a balanced push towards both employment generation and retention.

Part A: Incentives for First-Time Employees

• One-time support up to ₹15,000, paid in two instalments after completing 6 and 12 months of continuous service.

• Linked with completion of a Financial Literacy Program to encourage responsible money management.

• Incentive duration: 2 years for general sectors and 4 years for the manufacturing sector.

Part B: Incentives for Employers

• Per-employee monthly incentive based on wages:

  • Wages ≤ ₹10,000 → ₹1,000

  • ₹10,001–₹20,000 → ₹2,000

  • ₹20,001–₹1,00,000 → ₹3,000

• Incentive duration: 2 years (general sectors), 4 years (manufacturing).Applicability and Coverage

PMVBRY applies to all EPFO-covered establishments, including exempted PF trusts.

• New establishments registered after 1st August 2025 can claim benefits once their workforce exceeds 20 employees.

• Registration window: 1st August 2025 – 31st July 2027.

• Applicable to first-time employees and re-joinees with Aadhaar-authenticated UANs.

Baseline & Threshold Rules

To ensure that only genuine job creation qualifies:

• If baseline < 50 employees, the establishment must add at least 2 employees.

• If baseline ≥ 50 employees, a minimum addition of 5 employees is required.

• The baseline is calculated based on average employment from August 2024 – July 2025.Built-In Safeguards and Digital Integration

To maintain transparency and prevent misuse, PMVBRY is supported by robust API integrations with databases such as:

• GST, Income Tax, MCA, ESIC, and Udyam.

These integrations allow real-time data verification and fraud detection, ensuring that only compliant establishments benefit from the scheme.

Enterprises with pending EPFO inquiries, fraud-related cases, or non-compliance records are automatically excluded. In addition, penalty provisions apply for any misrepresentation or false claims.

Employers must also ensure:

• Accurate ECR filings.

• Aadhaar-authenticated UANs for all employees.

• PAN-linked bank accounts to facilitate direct incentive transfers.

Governance and Grievance Redressal

PMVBRY is managed under a two-tier governance model:

• A Steering Committee chaired by the Secretary, Ministry of Labour and Employment (MoLE) at the policy level.

• An Executive Committee, led by the Central Provident Fund Commissioner (CPFC), responsible for implementation.

The EPFO has also set up a dedicated online grievance portal and call centre, ensuring timely support within 15 days, with an escalation matrix for unresolved cases.

Funding and Tax Implications

The Government has allocated ₹99,446 crores to the scheme, making it a fund-limited program — once the budget is exhausted, no further financial commitments will be made.
All incentives received under PMVBRY are taxable under the Income Tax Act, 1961, unless specifically exempted.

How Serve HR Supports Enterprises Under PMVBRY

As organizations gear up to leverage PMVBRY, Serve HR provides end-to-end support to ensure full compliance and seamless execution:

• Eligibility Assessment: Evaluating whether your establishment and employees qualify under PMVBRY.

• Compliance Assistance: Managing ECR filings, Aadhaar/UAN seeding, and PAN-linked bank account mapping.

• Advisory Services: Aligning PMVBRY participation with broader labour law compliance frameworks.

• Vendor Audits: Conducting structured reviews to ensure compliance across your vendor and supply chain ecosystem.