More than 72 lakh first-time workers have joined India’s formal workforce during the first year of the Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY), according to government data, highlighting the scheme’s role in expanding formal employment and social- security coverage.
Launched on 1 August, 2025, the employment-linked incentive scheme is aimed at encouraging formal hiring by linking new jobs with Employees’ Provident Fund Organisation (EPFO) registration. The initiative seeks to bring first-time workers into the organised sector while extending access to benefits such as provident fund and other social-security provisions.
Government figures show that women account for nearly 30 per cent of the beneficiaries under the scheme. More than 15 lakh workers have also received employment-linked financial incentives since its launch.
The PM-VBRY has been allocated an outlay of Rs 99,446 crore and will remain in operation until 31 July, 2027. Over the implementation period, the government aims to facilitate the creation of more than 3.5 crore jobs, including around 1.92 crore opportunities for first-time workers. Manufacturing and other labour-intensive sectors remain key focus areas.
Under the scheme, eligible first-time employees earning up to Rs 1 lakh a month are entitled to a one-time incentive equivalent to one month’s EPF wage, subject to a maximum of Rs 15,000. The payment is released in two instalments, with eligibility linked to continued employment and completion of a financial literacy programme.
The programme also offers incentives to employers who expand their formal workforce. Financial support is provided for additional eligible employees who remain on the payroll for the prescribed period, encouraging companies to focus on sustained hiring rather than temporary recruitment.
The latest figures represent an increase from nearly 70 lakh beneficiaries reported a month earlier, indicating steady growth in formal employment under the scheme.
For employers, the initiative could help lower the initial cost of hiring entry-level talent while strengthening workforce formalisation. For employees, it offers an entry point into the organised labour market along with access to long-term social security benefits.
The scheme’s long-term success, however, will depend not only on creating formal jobs but also on retaining workers and supporting career progression after the incentive period ends.
