The Indian government’s Pradhan Mantri Viksit Bharat Rozgar Yojana (PM VBRY) is designed to encourage formal job creation and support new entrants into the workforce. Under this scheme, first time employees registered with the Employees’ Provident Fund Organisation (EPFO) can receive a direct incentive of up to
Rs 15,000 during their first year of employment.
The benefit is split into two instalments. The first payment comes after six months of continuous service. The second requires both 12 months of service and successful completion of an EPFO recommended financial literacy course, available through the member portal. This extra step ensures that employees not only earn but also learn how to manage their money effectively.
Eligibility is limited to Indian residents earning less than Rs 1,00,000 per month, working in EPFO registered or exempted establishments, and holding Aadhaar linked bank accounts. Both new joiners and re joiners qualify, but employers themselves are excluded. The scheme defines a “first time employee” as someone who joined between 1 August, 2025 and 7 July, 2027, and who had not contributed to EPF before August 2025.
Beyond employee incentives, PM VBRY also rewards employers. Companies hiring additional staff can claim up to Rs 3,000 per month per new worker for two years, or up to four years in manufacturing. Smaller firms must add at least two employees to qualify, while larger ones must also show net workforce growth.
For HR and payroll teams, this scheme means adjusting compliance systems, tracking eligibility, and ensuring staff complete the literacy module. For employees, it offers both immediate financial support and long term savings awareness—making the transition into formal work more secure and rewarding.
