The Union Cabinet approved the Employment Linked Incentive (ELI) scheme, titled the Pradhan Mantri Viksit Bharat Rojgar Yojana (PMVBRY), on July 1, 2025. The programme is designed to encourage job creation, enhance workforce employability and strengthen social security coverage across sectors, including micro, small and medium enterprises and rural businesses, with a particular focus on manufacturing.
Coverage Period and Budget Allocation
The incentives under PMVBRY will be applicable to jobs generated during a two-year registration period running from August 1, 2025, to July 31, 2027. The scheme aims to facilitate the creation of more than 3.5 crore jobs across the country within this timeframe. A total financial outlay of ₹99,446 crore has been earmarked for its implementation.
Incentives for First-Time Employees
Part A of the scheme provides support to individuals entering formal employment for the first time in both new and existing establishments. Eligible employees will receive an incentive equivalent to one month’s Employees’ Provident Fund wage, subject to a maximum of ₹15,000. This amount will be paid in two instalments during the first year of employment.
The initial instalment of up to ₹7,500 will be released after six months of continuous service. The remaining amount will be disbursed after the completion of twelve months of employment, contingent upon successful participation in a specified financial literacy programme. The second instalment will be credited to a designated savings instrument or savings account for a defined holding period.
Incentives for Employers
Part B of PMVBRY is aimed at employers and offers an incentive of up to ₹3,000 per month for each additional worker hired. This benefit is applicable provided the employment is maintained for a minimum duration of six months.
Background: Aatmanirbhar Bharat Rojgar Yojana
The Aatmanirbhar Bharat Rojgar Yojana was introduced on October 1, 2020, to assist employers in generating new employment and addressing job losses during the COVID-19 period. Registration under the scheme concluded on March 31, 2022, while eligible beneficiaries continued to receive benefits for two years from their respective registration dates. As of March 31, 2024, the scheme had extended benefits to 60.49 lakh beneficiaries nationwide.
Summary
The Pradhan Mantri Viksit Bharat Rojgar Yojana, approved in July 2025, is an employment-linked incentive programme with a budget of ₹99,446 crore. It targets the creation of over 3.5 crore jobs between August 2025 and July 2027 by offering incentives to first-time employees and employers, while building on earlier employment support initiatives such as the Aatmanirbhar Bharat Rojgar Yojana.
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