Young people getting their first formal job could receive up to Rs 15,000 from the Central government under an employment incentive programme aimed at encouraging workforce participation and formal job creation.
The benefit is available to eligible first-time employees joining EPFO-registered establishments during the scheme period.
What is PMVBRY?
The scheme under discussion is Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY), an Employment Linked Incentive (ELI) scheme aimed at promoting formal employment.
The scheme covers jobs created between August 1, 2025 and July 31, 2027. It is being implemented through the Employees’ Provident Fund Organisation (EPFO).
The Union Cabinet approved the scheme with an outlay of Rs 99,446 crore. The government has said the programme aims to support the creation of more than 3.5 crore jobs over two years. Around 1.92 crore beneficiaries are expected to be first-time entrants to the workforce.
Who Can Get the Rs 15,000 Benefit?
Under Part A of the scheme, first-time employees can receive an incentive equal to one month’s wage, subject to a maximum of Rs 15,000.
The benefit is available to employees with a monthly gross salary of up to Rs 1 lakh.
To qualify, an employee must:
- Be registered with EPFO for the first time.
- Join an establishment between August 1, 2025 and July 31, 2027.
- Have a monthly gross salary of up to Rs 1 lakh.
- Remain in continuous employment for the prescribed period.
The scheme is intended for first-time employees entering the formal workforce through establishments covered under the Employees’ Provident Fund Organisation (EPFO).
The programme aims to promote employment generation, employability and formalisation of the workforce in the private and organised sectors.
Why Government Employees Are Not Eligible
Government employees are not eligible for benefits under the Pradhan Mantri Viksit Bharat Rozgar Yojana. Since government employees are generally not covered under the Employees’ Provident Fund (EPF) system and are instead covered under the General Provident Fund (GPF) or the National Pension System (NPS), they do not fall within the scheme’s eligibility criteria.
How Will the Money Be Paid?
The incentive will be paid in two instalments through Direct Benefit Transfer (DBT) into the employee’s Aadhaar-linked bank account. The first instalment will be released after completion of six months of continuous service.
The second instalment will be paid after completion of 12 months of service and successful completion of a financial literacy programme. According to the scheme guidelines, a portion of the second instalment will be routed into a savings instrument.
Apart from employees, employers are also eligible for incentives under the scheme for generating new jobs. Employers can receive incentives ranging from Rs 1,000 to Rs 3,000 per month per eligible employee, depending on wage levels.
Face Authentication and DBT Mandatory
EPFO and related departments have issued guidelines for members seeking benefits under the scheme. According to the guidelines, every new joiner and first-time EPFO member must complete Universal Account Number (UAN) verification through Face Authentication Technology (FAT).
The authorities have stated that benefits will not be released without successful UAN verification through the prescribed digital process. Members facing technical issues during verification have been advised to approach their respective EPFO regional offices for assistance.
The scheme amount will be transferred directly into beneficiaries’ bank accounts through DBT. For this, the bank account must be enabled for DBT transactions. Employees whose bank accounts are not DBT-enabled have been advised to contact their bank branches and complete the required formalities to activate the facility.
What Can Lead to Loss of Benefits?
The guidelines also place compliance responsibilities on employers and establishments. According to the notification, establishments must regularly file their Electronic Challan-cum-Return (ECR) and deposit EPF contributions within the prescribed timelines.
Failure to file ECRs or delays in depositing contributions may affect employees’ eligibility to receive benefits under the scheme. The authorities have asked establishments to ensure timely filing of returns and contribution payments to facilitate the release of instalments to eligible employees.
Labour Ministry data showed that by the end of 2025, more than 20.7 lakh first-time employees had benefited under the scheme. More than 2.35 lakh establishments had registered on the PMVBRY portal.
The scheme will remain applicable for eligible jobs created between August 1, 2025 and July 31, 2027, subject to compliance with the eligibility and verification requirements laid down by EPFO and the government.
