PM to Disburse ₹2,400 Crore Under Pradhan Mantri Viksit Bharat Rozgar Yojana
A direct-benefit employment incentive scheme targeting formal job creation — examining its statutory basis, design logic, and UPSC relevance
What happened
India's central labour market challenge is not just unemployment but the quality of employment — over 90% of workers remain in the informal sector, outside the ambit of social security. PM-VBRY is the government's most direct fiscal instrument yet to incentivise formalisation, and its ₹2,400 crore disbursal moment is a live test of whether employment-linked incentives can structurally shift India's labour market. A UPSC aspirant who understands this scheme can answer questions on inclusive growth, EPFO architecture, DBT design, and the ethics of targeted subsidies — all in one analytical sweep.
Formal Employment Share: India vs Peer Economies
Formal Employment Share (% of Total Employment)
Source: ILO-IHD India Employment Report 2024; Economic Survey 2024-25
PM-VBRY operates through EPFO's Universal Account Number (UAN) infrastructure, making it a DBT scheme routed via a statutory body under the Employees' Provident Funds & Miscellaneous Provisions Act, 1952.
●Three sub-schemes exist: Scheme A targets first-time employees (one month's wage up to ₹15,000 in two instalments); Scheme B targets employers in manufacturing who hire first-time employees (incentive for 2 years); Scheme C targets all-sector employers for incremental hiring.
●The eligibility threshold is a monthly salary below ₹1 lakh.
●The scheme was allocated ₹10,000 crore in Union Budget 2024-25 over two years.
●Prelims frequently tests the administering body (EPFO), the parent legislation (EPF & MP Act, 1952), and the salary threshold.
●Do not confuse with PMRPY (Pradhan Mantri Rojgar Protsahan Yojana), which was the predecessor ELI scheme (2016) that paid the employer's EPF contribution.
The single most testable fact: PM-VBRY has three distinct sub-schemes (A, B, C) administered via EPFO's UAN system, with a ₹1 lakh/month salary cap, announced in Union Budget 2024-25 with a ₹10,000 crore outlay.
◎ In Simple Words
Imagine the government wants more companies to give people proper, registered jobs with benefits like provident fund. So it says: 'If you hire a new worker and register them officially, we'll give both you and the worker some money as a reward.' That's what PM-VBRY does. On 19 June 2026, the Prime Minister will hand out about ₹2,400 crore — like a giant reward cheque — to lakhs of workers and companies who followed the rules and created real, formal jobs. It's the government's way of turning informal work into proper, protected employment.
Factual Pointers
Practice · 2 questions
With reference to the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), which of the following statements is/are correct?
1. It is administered by the Employees' Provident Fund Organisation (EPFO).
2. Under Scheme A, a first-time employee receives an incentive equivalent to one month's wage, subject to a ceiling of ₹15,000.
3. The scheme is open to employees earning up to ₹2 lakh per month.
4. It was announced in Union Budget 2023-24.
Select the correct answer using the code below:
The Employees' Provident Funds & Miscellaneous Provisions Act, 1952 provides for which of the following schemes?
Mains Practice Questions
The Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) represents a shift from supply-side skilling to demand-side employment incentives. Critically examine the design, potential, and limitations of employment-linked incentive schemes in addressing India's formalisation deficit. (250 words, GS3)
India's informal economy employs over 90% of its workforce, yet social security coverage remains abysmally low. Analyse the role of EPFO as both a statutory social security body and a delivery mechanism for employment subsidies, and evaluate whether this dual role strengthens or compromises its core mandate. (250 words, GS2/GS3)
'Incentivising compliance with labour law raises deeper questions about the state's enforcement capacity and moral authority.' In the context of employment-linked incentive schemes, examine this statement from an ethical and governance perspective. (150 words, GS4)