The Ministry of Labour and Employment has issued detailed guidelines for implementation of the Pradhan Mantri Viksit Bharat Rozgar Yojana (“PMVBRY”), announced in the Union Budget 2024-25 as part of the Prime Minister’s Package for Employment and Skilling. The scheme will be implemented through the Employees’ Provident Fund Organisation (“EPFO”) with effect from 1st August 2025 and aims to incentivize both employees and employers to generate sustained additional employment, with a particular thrust on the manufacturing sector.
Key Highlights:
- Structure of the Scheme
- Part A – First Timer Support: One-time incentive of up to ₹15,000 for first-time employees to help them navigate their learning curve and enhance employability. Incentives will be disbursed in two instalments and linked to continuity of employment and completion of financial literacy training.
- Part B – Employer Incentives: Establishments will be incentivized for creating additional jobs for a period of 2 years in all sectors, and for 4 years in the manufacturing sector. Incentives range from ₹1,000 to ₹3,000 per employee per month, depending on wage slabs.
- Applicability
- Applicable to all establishments covered under the EPF & MP Act, 1952, including exempted establishments.
- Registration period: 01.08.2025 to 31.07.2027.
- Existing establishments will be deemed registered but must provide PAN, GSTN, and PAN-linked bank account details.
- Eligibility Conditions
- For Employees (Part A): First-time employees with gross wages up to ₹1 lakh per month, subject to minimum continuous service of six months and Aadhaar-based authentication through UMANG App.
- For Employers (Part B): Establishments generating additional employment over a defined baseline (average number of employees in the preceding period), subject to minimum threshold of 2 or 5 additional employees depending on baseline size.
- Mode of Incentive Disbursement
- Employees: Direct Benefit Transfer (“DBT”) to Aadhaar-seeded bank accounts.
- Employers: DBT to PAN-linked bank accounts of establishments.
- Fraud Prevention and Penalties
- Strict verification through API integration with GST, CBDT, MCA, ESIC, and other portals.
- Penalties will be imposed for fraudulent claims or misrepresentation.
- Monitoring & Evaluation
- Oversight by an inter-ministerial Steering Committee chaired by Secretary (Labour & Employment).
- EPFO to develop an IT portal for tracking beneficiaries, claims, and sectoral data.
- Mid-term and end-term third-party evaluations will be conducted.
- Financial Outlay
- Total scheme outlay: ₹99,446 crore (including administrative charges).
- Incentives will be provided within this capped budgetary allocation.
- Incentives under PMVBRY will be in addition to those under any other scheme unless specifically exempted.
- Incentives received will be taxable as per the Income Tax Act, 1961 unless exempted by order.
The guideline is linked below, for your ease of reference.
Source: Ministry of Labour and Employment