Over 72 lakh workers join formal workforce under PM-VBRY in first year

New Delhi, Aug 1 (SocialNews.XYZ) Over 72 lakh first‑time employees have entered the formal workforce since August 2025, within one year of the implementation of Pradhan Mantri Viksit Bharat Rojgar Yojana, an official statement said on Saturday.

The scheme strengthens social security coverage and encourages employers to create new jobs. Nearly 30 per cent of beneficiaries are women, and more than 15 lakh beneficiaries have already received employment‑linked incentives under the scheme.

By linking employment with EPFO registration and direct benefit transfers, PM-VBRY is strengthening India's organised labour market and creating a more secure talent pool.

Through a transparent, Employees' Provident Fund Organisation (EPFO)- administered framework, it strengthens workforce formalisation while creating opportunities for both employees and employers, the statement noted.

The programme, announced in August 2025, is being implemented from August 1, 2025 to July 31, 2027 with an outlay of Rs 99,446 crore.

PM-VBRY aims to generate employment for over 3.5 crore people, including 1.92 crore first-time employees. The scheme encourages young people to enter the organised workforce through EPFO registration. It also expands social security coverage across various sectors, particularly labour-intensive manufacturing. It complements the National Manufacturing Mission by promoting employment in new and expanding industries.

PM‑VBRY works under a two‑part incentive framework. It offers first‑time employees earning up to Rs 1 lakh per month a one‑time incentive equal to one month’s EPF wage, capped at Rs 15,000.

The incentive is paid in two instalments with the first one paid after six months of service. The second instalment is paid after twelve months of continuous service, following completion of a financial literacy programme.

A portion of the incentive is invested in a designated savings instrument, which can be withdrawn by the employee at a later date, encouraging financial security and savings.

Employers receive up to Rs 3,000 per month for two years for each eligible additional employee retained for at least six months, lowering hiring costs and encouraging sustained job creation. Employers are eligible for incentives for employees with salaries of up to Rs 1 lakh per month.

For the manufacturing sector, incentives are extended to the third and fourth years as well, owing to high employment generation potential.

—IANS

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Source: IANS