Over 72 Lakh Join Formal Workforce under PM-VBRY

Announced in August 2025, the programme is being implemented from August 1, 2025 to July 31, 2027 with an outlay of Rs 99,446 crore. It aims to generate employment for over 3.5 crore people, including 1.92 crore first-time employees. The scheme encourages young people to join the organised workforce through EPFO registration and expands social security coverage across various sectors, particularly labour-intensive manufacturing. It also complements the National Manufacturing Mission by promoting employment in new and expanding industries.

PM-VBRY operates under a two-part incentive framework. First-time employees earning up to Rs 1 lakh per month receive a one-time incentive equal to one month’s EPF wage, capped at Rs 15,000. The amount is paid in two instalments: the first after six months of service and the second after twelve months of continuous service, following completion of a financial literacy programme. A portion of the incentive is invested in a designated savings instrument that the employee can withdraw later, promoting financial security and savings.

Employers receive up to Rs 3,000 per month for two years for each eligible additional employee retained for at least six months, thereby lowering hiring costs and encouraging sustained job creation. Employers qualify for the incentive in respect of employees earning up to Rs 1 lakh per month. In the manufacturing sector the incentive is extended to the third and fourth years as well, reflecting the sector’s high employment-generation potential.

The first-year figures indicate steady progress in formalising employment and extending social security coverage under the scheme’s dual employee-employer incentive structure.