At VDBS Consultancy Services Pvt. Ltd., we specialize in labour law compliance, payroll processing, licensing, and regulatory advisory. Our team constantly monitors new government policies to help organizations stay compliant and strategically aligned with national priorities.

This detailed blog provides an in-depth analysis of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY), a landmark scheme announced in Budget 2024–25. The insights shared here are designed to guide businesses, HR professionals, and compliance officers in understanding the applicability, benefits, and obligations under this scheme.

1. Introduction: Linking Growth with Employment

The Government of India, under the vision of Viksit Bharat @2047, has launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) to promote employment generation and workforce formalization.

Implemented through EPFO, this scheme combines:

• Employee-centric incentives to support first-time job seekers.
• Employer-focused benefits to encourage sustained job creation, especially in the manufacturing sector.

At VDBS, we believe PMVBRY has the potential to transform India’s labour market if leveraged properly by enterprises.

2. Key Objectives of PMVBRY

The scheme is not merely financial support; it is a policy tool designed to:

• Encourage new job creation across sectors.
• Provide learning curve support to fresh entrants in the workforce.
• Incentivize manufacturing enterprises with extended benefits.
• Foster formal employment, expanding EPFO coverage.
• Introduce financial literacy training for young employees.

3. Structure of the Scheme

Part A – Incentives for First-Time Employees

• One-time support up to ₹15,000.
• Paid in two instalments after 6 and 12 months of continuous service.
• Linked with completion of a Financial Literacy Program.

Part B – Incentives for Employers

• Support for generating sustained additional jobs.
• Incentive duration: 2 years (all sectors), 4 years (manufacturing).
• Per-employee monthly incentive:
  • Wages ≤ ₹10,000 → ₹1,000
  • Wages ₹10,001–₹20,000 → ₹2,000
  • Wages ₹20,001–₹1,00,000 → ₹3,000

4. Applicability and Coverage

• Applies to all EPFO-covered establishments, including exempted PF trusts.
• New establishments post 01.08.2025 eligible once workforce >20.
• Registration window: 01.08.2025 – 31.07.2027.
• Applicable to both first-timers and re-joinees (with Aadhaar-authenticated UAN).

5. Baseline & Threshold Rules

• Existing establishments: Average employees from Aug 2024 – July 2025.
• Thresholds for eligibility:
  • Baseline < 50 → Minimum +2 employees.
  • Baseline ≥ 50 → Minimum +5 employees.

This ensures only genuine job creation gets rewarded.

6. Safeguards and Compliance

The scheme incorporates strong compliance checks:

• API integration with GST, Income Tax, MCA, ESIC, Udyam for fraud detection.
• Exclusions: Establishments with pending EPFO inquiries or fraud cases.
• Penalty provisions for misuse.

👉 VDBS Note: Employers must maintain accurate ECR filings, Aadhaar authentication, and PAN-linked bank accounts to ensure smooth claim of incentives.

7. Monitoring & Governance

• Steering Committee (policy level, chaired by MoLE Secretary).
• Executive Committee (implementation, chaired by CPFC).
• Third-party mid-term and end-term evaluations to measure impact.

8. Grievance Redressal

• EPFO online portal + dedicated call centre.
• Complaints resolved within 15 days.
• Escalation matrix for unresolved cases.

9. Financial Outlay & Taxation

• Budget allocation: ₹99,446 crores.
• Fund-limited; no liabilities post closure.
• Incentives taxable under Income Tax Act, 1961 (unless exempted).

10. Why PMVBRY Matters

From VDBS’s perspective, this scheme:

• Eases workforce entry for India’s youth.
• Rewards industries that generate quality jobs.
• Promotes formalization of employment, strengthening EPFO.
• Aligns with national manufacturing goals.

11. VDBS Consultancy’s Role

At VDBS Consultancy Services, we support organizations by:

• Assessing eligibility under PMVBRY.
• Assisting in ECR compliance, Aadhaar/UAN seeding, and PAN-linked account mapping.
• Advisory on labour law integration with this scheme.
• Digital dashboards (V-Compliant tool) for real-time monitoring of incentives and compliance risks.
• Conducting vendor audits to ensure compliance across the supply chain.

12. Conclusion

The Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) is a forward-looking initiative that balances incentives for both employees and employers. It promises to formalize the workforce, strengthen social security, and support India’s long-term growth vision.

With VDBS’s expertise in labour law compliance, payroll, and regulatory advisory, businesses can navigate this scheme confidently, maximizing benefits while remaining fully compliant.