Large-scale job scheme starts August 2025
Viksit Bharat Rozgar Yojana Begins Employment Push: The Central Government is launching a large-scale job creation programme titled Viksit Bharat Rozgar Yojana (PM-VBRY) starting 1 August 2025. The scheme aims to add over 3.5 crore new jobs within two years. With a total outlay of ₹99,446 crore, it promotes inclusive growth through formal employment generation, especially in the manufacturing industry.
Two-part scheme design
The scheme will run till July 2027, and it is structured into two segments:
- Part A supports individuals joining the workforce for the first time.
- Part B provides incentives to employers who create new job positions.
The objective is to align employment expansion with broader economic development targets.
First-time worker benefits
Under Part A, new entrants to the workforce who register under the Employees’ Provident Fund Organisation (EPFO) and earn up to ₹1 lakh per month are eligible for financial support.
An amount equal to one month’s EPF-based wage is given in two instalments:
- After 6 months of continued employment
- After 12 months, with financial literacy training completed
Part of the benefit is allocated to a secured saving channel to nurture saving behaviour.
Static GK fact: EPFO is India’s principal social security agency and operates under the Ministry of Labour and Employment, established in 1952.
Incentives for employers
Employers registered with EPFO who expand their workforce are eligible under Part B. Conditions vary by company size:
- Companies with fewer than 50 employees must hire at least 2 new workers
- Larger firms (≥50 employees) must add 5 or more new staff
For each new hire earning up to ₹1 lakh, financial incentives are provided monthly for 2 years. For those in the manufacturing sector, this benefit extends to 4 years.
Incentive amounts depend on wage level:
- ₹1,000 for wages up to ₹10,000
- ₹2,000 for ₹10,001–₹20,000
- ₹3,000 for wages above ₹20,000
Payment system ensures transparency
Payments to workers are processed via Direct Benefit Transfer (DBT) using the Aadhaar Bridge Payment System (ABPS). Employers receive funds directly in PAN-linked bank accounts, ensuring smooth and transparent operations.
Static GK Tip: ABPS is managed by UIDAI, a statutory authority under the Ministry of Electronics and Information Technology.
Strengthening jobs and growth
The scheme aims to include around 1.92 crore first-time workers, encouraging greater participation in the formal economy. It reduces hiring costs, especially for MSMEs, and bolsters employment in priority sectors.
Financial literacy initiatives further help instill responsible money habits among new earners.
Static Usthadian Current Affairs Table
Viksit Bharat Rozgar Yojana Begins Employment Push:
Fact | Detail |
Scheme Launch | 1 August 2025 |
Time Frame | August 2025 to July 2027 |
Budget Allocation | ₹99,446 crore |
Benefit to New Workers | 1 month EPF wage in two parts |
Worker Salary Limit | ₹1 lakh per month |
Job Creation Target | Over 3.5 crore jobs |
EPFO Hiring Norms for Employers | 2 hires (<50 staff), 5 hires (≥50 staff) |
Manufacturing Sector Incentives | Up to 4 years of benefits |
Disbursement Mechanism | DBT through ABPS and PAN-linked accounts |
Overseeing Ministries | Labour Ministry and Electronics & IT Ministry |