PMVBRY Scheme: A scheme of Rs 1 lakh crore will start from August 1, 3.5 crore people will get jobs

PMVBRY Scheme: The Ministry of Labor on Friday announced that the Pradhan Mantri Vikassheel Bharat Rojgar Yojana (PM-VBRY) will come into effect from August 1, 2025. This ambitious scheme has been approved by the Union Cabinet chaired by Prime Minister Narendra Modi. With an outlay of Rs 99,446 crore, the scheme aims to stimulate employment generation of over 3.5 crores in the next two years (August 1, 2025 to July 31, 2027). In this, 1.92 crore new workers will join the workforce for the first time. This scheme is an important step towards accelerating India's economic growth through an employment-based strategy and promoting inclusive growth.

Objective of the scheme

The main objective of the Pradhan Mantri Vikassheel Bharat Rojgar Yojana is to encourage employment generation in the country. The scheme is designed in line with the Vikassheel Bharat initiative, which reflects the government's commitment to promote inclusive and environment-friendly employment opportunities. The special focus of the scheme is on the manufacturing sector, although it will encourage new employment generation across all sectors. It aims not only to generate employment but also to accelerate economic growth and promote financial literacy and savings habits among employees.

Key components of the scheme

The scheme is divided into two parts: Part A and Part B. Both parts are designed to achieve different goals.

Part A: Incentives for new employees

Beneficiaries: Employees registering for the first time with the Employees' Provident Fund Organisation (EPFO), with monthly salary up to Rs 1 lakh.

Incentive amount: One month's EPF contribution of up to Rs 15,000, which will be provided in two installments:

First installment: After completing 6 months of service.

Second installment: After completing 12 months of service and financial literacy programme.

Savings incentive: A part of the incentive amount will be placed in a savings instrument or deposit account for a fixed period, which employees can withdraw later.

Part B: Incentives for Employers

Beneficiaries: Employers who provide continuous employment for at least 6 months.

Incentive Amount: For every additional employee with a salary up to Rs 1 lakh, the government will provide incentives up to Rs 3,000 per month for 2 years.

Special Provision for Manufacturing Sector: The incentives in this sector will be extended for the third and fourth years to promote long-term employment generation.

Scheme Features

• Inclusive Approach: The scheme encourages employment generation across all sectors, but with a special focus on the manufacturing sector, which is critical to India's economic growth.
• Financial Literacy and Savings: Emphasis on empowering employees through financial literacy programmes and promoting the habit of saving.
• Long Term Impact: Target to generate over 3.5 crore jobs in two years, including 1.92 crore new employees.
• Eco-Friendly Employment: The scheme encourages environment-sensitive employment opportunities, which is in line with the vision of a developing India.