PIB TrackerPM disburses Rs 2,400 crore under the employment-linked PM-VBRY scheme
The Prime Minister released about Rs 2,400 crore of incentives under the Pradhan Mantri Viksit Bharat Rozgar Yojana — the Government's flagship employment-linked incentive scheme to reward first-time hires and job-creating employers.
What happened
- The Prime Minister disbursed incentives worth around Rs 2,400 crore under the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), the Government's flagship employment-linked incentive (ELI) scheme.
- He described PM-VBRY as more than an employment scheme — an initiative to strengthen first-job aspirations and build a bridge between industry and the workforce, expanding social-security coverage.
- He tied it to India's youth-driven growth ambitions for a Viksit Bharat, stressing skilled talent, innovation and high quality standards.
- PM-VBRY was approved in 2025 with a total outlay of Rs 99,446 crore and targets the creation of more than 3.5 crore jobs over two years.
- It works through EPFO-linked benefits — Part A rewarding first-time employees and Part B incentivising employers who generate additional jobs.
For Prelims
- PM-VBRY: The Pradhan Mantri Viksit Bharat Rozgar Yojana, an Employment-Linked Incentive (ELI) scheme approved in 2025 (effective 1 August 2025) with an outlay of Rs 99,446 crore, targeting 3.5 crore+ jobs over two years.
- Two parts: Part A gives first-time EPFO-registered employees one month's EPF wage (up to Rs 15,000, in two instalments); Part B gives employers incentives (up to Rs 3,000/month per additional employee).
- EPFO link: Benefits flow through the Employees' Provident Fund Organisation (EPFO), simultaneously expanding formal-sector social-security coverage.
- ELI in Budget: The employment-linked incentive package was announced in the Union Budget 2024-25 as part of the PM's package for jobs and skilling.
- Why it matters: It targets the 'missing middle' of first-time formal jobs and formalisation, complementing skilling missions and the demographic-dividend agenda.
- Related: Sits alongside schemes like Skill India, PMKVY and the National Apprenticeship scheme in the jobs-and-skilling ecosystem.
- Don't confuse: PM-VBRY is an employer/employee incentive for formal job creation (via EPFO), not a direct cash dole or a public-works wage scheme like MGNREGS.
For UPSC: The PM disbursed ~Rs 2,400 crore under PM-VBRY, the flagship employment-linked incentive scheme. Anchor PM-VBRY (ELI, Rs 99,446 cr, 3.5 crore jobs target, effective Aug 2025), its Part A (first-timers) and Part B (employers) design, the EPFO link and formalisation, its Budget 2024-25 origin, and its place in the skilling/jobs ecosystem.
What it is NOT: PM-VBRY is an employment-linked incentive routed through EPFO to reward formal job creation (Part A for first-time employees, Part B for employers) — NOT a public-works wage scheme like MGNREGS or an unconditional cash transfer. The Rs 2,400 crore is a disbursement against the much larger Rs 99,446 crore scheme outlay.
For Mains
Syllabus: GS3.2 · GS2.10 · Linkage L1
Anchor
Employment generation and formalisation — incentivising first-time jobs and employer hiring to harness the demographic dividend.
Substantiation (data)
PM-VBRY (ELI): Rs 2,400 cr disbursed; Rs 99,446 cr outlay; 3.5 crore+ jobs targeted over two years; Part A (first-timers) + Part B (employers) via EPFO.
Exemplification
Cite PM-VBRY (with Skill India and apprenticeship schemes) as an example of demand-side incentives to formalise jobs and expand social security.
Problematisation
Job quality and durability, deadweight/substitution effects, reaching the informal sector, and converting incentives into lasting employment are challenges.
Way-forward
Pair incentives with skilling and quality standards, monitor net job creation, and extend formal social security to more workers and sectors.
Position
Government stance: PM-VBRY empowers first-time workers, bridges youth and industry, and expands social security on the path to Viksit Bharat.
Deploys into: Employment-linked incentives & formalisation (PM-VBRY/EPFO) · demographic dividend & skilling · social-security expansion · jobs & growth (GS3.2 inclusive growth & employment, GS2.10 government policies & interventions).
Ministry of Labour & Employment · 2026-06-19 · PRID 2275407 · PIB source ↗