Scheme
Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY)
GS3 Employment and formal jobsGS2 Welfare schemesPrelims and Mains
- Why in news
- On 17 June 2026 the PMO announced that the PM will disburse about ₹2,400 crore in incentives under PM-VBRY on 19 June 2026 at Vigyan Bhawan, New Delhi. The release says the scheme has so far supported 15 lakh jobs.
- What it is
- PM-VBRY is a Ministry of Labour and Employment scheme that gives cash incentives for new formal jobs. It pays first-time employees and also supports employers who add jobs. It runs through EPFO registration and Direct Benefit Transfer.
- Duration and outlay
- The scheme runs from 1 August 2025 to 31 July 2027 with an outlay of ₹99,446 crore.
- Target
- It aims at jobs for over 3.5 crore people, including 1.92 crore first-time employees.
- Part B: employers
- Employers get up to ₹3,000 a month for two years for each additional employee retained at least six months. Manufacturing gets years three and four too.
- Delivery
- Incentives need UAN authentication through Face Authentication Technology on the UMANG App and go by DBT to Aadhaar-linked accounts.
- Employee incentive
- First-time employees can get up to ₹15,000.
- Employer incentive
- Employers get up to ₹3,000 per month for each additional employee.
- Duration of employer benefit
- Manufacturing employers get incentives for four years; employers in other sectors for two years.
Don’t confuse with EPFO vs ESIC: EPFO runs the provident fund and PM-VBRY. ESIC provides health and other insurance. Both join the outreach teams.
Don’t confuse with PM-VBRY vs ELI scheme: PM-VBRY is the name under which the release presents the employment-linked incentive scheme. Do not treat it as a separate scheme from the ELI idea.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Expands formal jobs and social security coverage, helping use the demographic dividend.
- Eases hiring costs for employers, especially in labour-intensive manufacturing.
- Digital DBT delivery raises transparency and reduces leakage.
- Rewards formal hiring, so it can widen EPFO and social security coverage.
- Helps first-time job seekers enter work and supports employers adding jobs, especially in manufacturing.
Problems
- Incentives may subsidise hiring that would have happened anyway, so true job creation is hard to measure.
- Employers may churn workers or misreport to claim benefits, and small firms may lack EPFO compliance capacity.
- Informal workers, who are most of the workforce, stay outside the scheme.
- Incentives may go to jobs firms would have created anyway, which weakens the effect on additional hiring.
- Informal workers outside EPFO registration are not reached, and jobs may end once incentives stop.
Way forward
- Audit additionality and fraud by using EPFO data analytics and periodic independent evaluation.
- Simplify compliance for MSMEs and link the scheme to skilling and the manufacturing push.
- Audit incentive claims to check that jobs are truly additional and lasting.
- Pair incentives with skilling and easier compliance for small firms.
Put in your answer
Digital delivery: Aadhaar-based authentication, UAN face authentication and DBT show tech-led delivery.
Jobs supported so far: The release says the incentive has supported 15 lakh employment opportunities.
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- 2016Mains GS3 · Q1How globalisation reduced formal employment and whether informalisation harms development
- 2019Prelims Q60Whether fixed-term employment rules make it easier to lay off workers
- 2020Prelims Q58Post-1991 changes in rural employment, workforce share and non-farm growth
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UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.Under Part A of the Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY), the incentive to a first-time employee is equal to one month's EPF wage, subject to a cap of ₹15,000, and is paid in two instalments.
- 2.Under Part B of the scheme, employers get up to ₹3,000 per month for two years for each eligible additional employee, and the extension to the third and fourth years is meant for the services sector.
- 3.Incentives under the scheme are released only after the Universal Account Number (UAN) is authenticated through Face Authentication Technology on the UMANG App.
Which of the statements given above is/are correct?
True or false?
1 of 14
Statements the way Prelims prints them. Say first, then see the fact.
1.The scheme is administered through a framework linked to the Employees' Provident Fund Organisation.
True. The framework is EPFO-linked and EPFO-administered.
2.The employee incentive is capped at ₹15,000 and equals one month's EPF wage.
True. One month's EPF wage, capped at ₹15,000.
3.The employee incentive is paid in a single lump sum on joining.
False. It is paid in two instalments, after six and twelve months of service.
4.Employers receive up to ₹3,000 per month for each eligible additional employee, for two years in general.
True. Up to ₹3,000 a month for two years; manufacturing gets years three and four as well.
5.Extended employer incentives for the third and fourth years apply to the services sector.
False. The extension applies to the manufacturing sector.
6.The scheme is implemented over a period from 1 August 2025 to 31 July 2027.
True. A two-year period from 1 August 2025 to 31 July 2027.
7.Incentives are available only after the UAN is authenticated using Face Authentication Technology on the UMANG App.
True. Face authentication of the UAN on UMANG is required.
8.The scheme targets jobs for 1.92 crore people in total, all of them first-time employees.
False. The target is over 3.5 crore jobs, including 1.92 crore first-time employees.
9.PM-VBRY came into effect on 1 August 2025.
True. The scheme started on 1 August 2025.
10.Under PM-VBRY, first-time employees are eligible for an incentive of up to ₹15,000.
True. Up to ₹15,000 for first-time employees.
11.Employers can receive up to ₹3,000 per month per additional employee under the scheme.
True. The employer incentive is up to ₹3,000 per month per additional employee.
12.Employers in all sectors, including manufacturing, can claim incentives for two years only.
False. Manufacturing employers get four years; other sectors get two.
13.The scheme aims to incentivise more than 3.5 crore jobs over a two-year period.
True. The target is over 3.5 crore jobs in two years.
14.About 1.92 crore of the targeted beneficiaries are expected to be first-time entrants into the workforce.
True. Around 1.92 crore first-time entrants are expected.
Written by us from the release, not by UPSC; checked by a second model.
Mains practice
10 marks · 150 words
The Pradhan Mantri Viksit Bharat Rojgar Yojana completed one year of implementation on 1 August 2026. It offers cash incentives to first-time employees and to employers who add jobs, and it is delivered through EPFO registration and Direct Benefit Transfer. Examine the main provisions of the scheme and discuss its significance and the challenges in expanding quality formal employment in India.
Worth revising until Prelims 2028: most news questions come within two years of the event.