PM-VBRY: Over 72 lakh workers join formal workforce in first year
Synopsis
One year in, PM-VBRY has pulled over 72 lakh first-time workers into India's formal economy — with 30% of them women and ₹99,446 crore committed through 2027. The scheme's EPFO-linked incentive model is an unusually direct test of whether financial nudges alone can shift India's vast informal labour base into the organised sector.
Key Takeaways
72 lakh first-time employees have joined the formal workforce in the first year of PM-VBRY , launched on 1 August 2025 .
Nearly 30% of beneficiaries are women; over 15 lakh have already received employment-linked incentives.
The scheme carries a total outlay of ₹99,446 crore and runs until 31 July 2027 .
First-time employees earn a one-time incentive capped at ₹15,000 ; employers receive up to ₹3,000 per month for two years per eligible hire.
Manufacturing-sector employers receive incentives extended to the third and fourth years .
Overall target: employment for over 3.5 crore people , including 1.92 crore first-time employees .
More than 72 lakh first-time employees have entered India's formal workforce in the first year of the Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY), according to an official statement released on Saturday, 1 August 2025. The milestone, reached exactly one year after the scheme's launch, marks a significant early push toward formalising India's vast unorganised labour base.
Key Developments in the First Year
Of the 72 lakh beneficiaries enrolled so far, nearly 30 per cent are women — a figure the government has highlighted as evidence of the scheme's inclusivity. More than 15 lakh beneficiaries have already received employment-linked incentives through the Employees' Provident Fund Organisation (EPFO)-administered framework. The scheme runs from 1 August 2025 to 31 July 2027 with a total outlay of ₹99,446 crore.
How the Incentive Framework Works
PM-VBRY operates on a two-part structure designed to benefit both workers and employers. First-time employees earning up to ₹1 lakh per month receive a one-time incentive equal to one month's EPF wage, capped at ₹15,000, disbursed in two instalments — the first after six months of continuous service and the second after twelve months, contingent on completing a financial literacy programme.
A portion of this incentive is directed into a designated savings instrument, which employees can withdraw at a later stage, building a basic financial security buffer for workers new to the formal economy.
On the employer side, companies retaining eligible additional employees for at least six months receive up to ₹3,000 per month for two years per such employee, lowering hiring costs. For the manufacturing sector, these employer incentives are extended into the third and fourth years as well, reflecting the sector's high employment-generation potential.
Broader Goals and Labour Market Context
PM-VBRY targets employment for over 3.5 crore people over its two-year run, including 1.92 crore first-time employees. By tying enrolment directly to EPFO registration and routing benefits through direct benefit transfers, the scheme aims to draw workers out of the informal economy and into a verifiable, social-security-backed workforce.
This comes amid a wider policy push to lift India's formal employment ratio, which has historically lagged its economic growth rate. PM-VBRY is designed to complement the National Manufacturing Mission, with a specific focus on labour-intensive industries where informal employment is most entrenched.
What Comes Next
With roughly half its two-year window remaining, the scheme's administrators face the task of scaling enrolments toward the 1.92 crore first-time employee target. The second-instalment disbursements — due after twelve months of service — will begin flowing in the coming months, providing a clearer picture of retention rates and scheme efficacy. How effectively employer incentives translate into sustained job creation, particularly in manufacturing, will be a key metric to watch through 2026.
Point of View
But it represents roughly 37% of the 1.92 crore first-time employee target with half the scheme's life elapsed. The more telling metric — one the official statement does not surface — is retention: how many of these workers remain in formal employment after the twelve-month mark when the second incentive instalment is due. India's informal economy has repeatedly absorbed scheme-driven formal entrants and pushed them back out once incentives lapse. Until retention data is published alongside enrolment figures, the headline number tells only half the story.
NationPress
1 Aug 2026
Frequently Asked Questions
What is PM-VBRY and when was it launched?
The Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY) is a government employment scheme launched on 1 August 2025, running through 31 July 2027 with an outlay of ₹99,446 crore. It aims to bring over 3.5 crore people into formal employment by linking enrolment to EPFO registration and delivering benefits through direct benefit transfers.
How many workers have benefited from PM-VBRY so far?
Over 72 lakh first-time employees have entered the formal workforce under PM-VBRY in its first year of operation. More than 15 lakh of these beneficiaries have already received employment-linked incentives, according to an official statement dated 1 August 2025.
What incentives do employees receive under PM-VBRY?
First-time employees earning up to ₹1 lakh per month receive a one-time incentive equal to one month's EPF wage, capped at ₹15,000, paid in two instalments — after six months and after twelve months of continuous service. A portion is invested in a designated savings instrument withdrawable at a later date.
What do employers get under the scheme?
Employers who retain eligible additional employees for at least six months receive up to ₹3,000 per month per such employee for two years. In the manufacturing sector, this incentive is extended to the third and fourth years as well, given the sector's high employment-generation potential.
Who are the primary beneficiaries of PM-VBRY?
The scheme targets first-time formal-sector employees, with a specific goal of covering 1.92 crore such workers. Nearly 30% of current beneficiaries are women. The scheme also focuses on labour-intensive manufacturing industries to complement the National Manufacturing Mission.
