Understanding the Incentive Period under Part B of the Pradhan Mantri Viksit Bharat Rozgar Yojana
The Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), launched on August 1, 2025, is a comprehensive employment-linked incentive scheme aimed at fostering job creation, enhancing employability, and promoting social security across India. This initiative, with an outlay of ₹99,446 crore, targets the generation of over 3.5 crore jobs by July 31, 2027. The scheme is divided into two parts: Part A focuses on supporting first-time employees, while Part B provides incentives to employers for creating additional employment opportunities.
Part B: Support to Employers
Part B of PM-VBRY is designed to incentivize employers for generating sustained additional employment across all sectors, with a special emphasis on the manufacturing sector. The core objective is to encourage employers to hire more workers, thereby formalizing the labor market and boosting economic growth.
Under Part B, employers are eligible for financial incentives based on the wages of the additional employees hired. The incentive structure is as follows:
Employees with EPF wages up to ₹10,000: ₹1,000 per month
Employees with EPF wages between ₹10,000 and ₹20,000: ₹2,000 per month
Employees with EPF wages between ₹20,000 and ₹1,00,000: ₹3,000 per month
These incentives are provided for a period of two years for all sectors. However, for establishments engaged in the manufacturing sector, the incentive period is extended to four years, recognizing the capital-intensive nature of manufacturing and the longer time frame required to achieve full productivity.
Eligibility Criteria for Employers
To avail of the incentives under Part B, employers must meet the following criteria:
Registration with EPFO: The establishment must be registered with the Employees’ Provident Fund Organisation (EPFO).
Additional Employment: Employers with fewer than 50 employees must hire at least two additional employees, while those with 50 or more employees must hire at least five additional employees.
Sustained Employment: The additional employees must be employed for a minimum of six months.
It’s important to note that the incentives are applicable to employees earning up to ₹1 lakh per month and are contingent upon the establishment meeting the above criteria.
Implementation and Monitoring
The scheme is being implemented by the Ministry of Labour and Employment through the Employees’ Provident Fund Organisation (EPFO). Employers can register for the scheme through the official PM-VBRY portal. The EPFO will monitor the progress of the scheme, ensuring that the objectives are met and that the incentives are disbursed appropriately.
Impact and Significance
PM-VBRY is a significant step towards formalizing the Indian labor market and promoting sustainable employment. By incentivizing employers to create additional jobs, the scheme aims to reduce unemployment rates, particularly among the youth and women. The extended incentive period for the manufacturing sector acknowledges the unique challenges faced by this industry and provides the necessary support to enhance its competitiveness.
In conclusion, the incentive period under Part B of the Pradhan Mantri Viksit Bharat Rozgar Yojana plays a crucial role in encouraging employers to generate additional employment opportunities. The differentiated incentive periods for various sectors reflect the government’s commitment to addressing sector-specific challenges and promoting inclusive economic growth.
For more detailed information and to apply for the scheme, employers can visit the official PM-VBRY
portal: https://pmvbry.epfindia.gov.in.
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