If you have recently started your first formal job, there is an important government scheme you should know about. The Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) has been introduced to encourage formal employment and provide financial support to first-time employees.

Under the scheme, eligible first-time employees can receive an incentive of up to ₹15,000. The government has also announced incentives for employers that create additional jobs. The scheme has a total outlay of ₹99,446 crore and aims to facilitate the creation of more than 3.5 crore jobs over a two-year period.

Who can get up to ₹15,000?

The scheme is aimed at people entering the formal workforce for the first time and becoming registered members of EPFO.

An eligible first-time employee earning up to ₹1 lakh per month can receive an incentive equivalent to one month's wage, subject to a maximum of ₹15,000. The benefit is paid in two instalments rather than as a single payment.

The first instalment becomes payable after completing six months of continuous service. The second instalment is linked to completing 12 months of service and completing a financial literacy programme.

What is the benefit for employers?

The scheme is not limited to employees. Employers can also receive incentives for creating additional formal jobs.

Eligible EPFO-registered establishments can receive an incentive of up to ₹3,000 per month for each additional employee for up to two years. Manufacturing establishments can receive the incentive for an additional two years, making the total period up to four years.

To qualify, establishments with fewer than 50 employees generally need to add at least two additional employees, while establishments with 50 or more employees need to add at least five.

When did the scheme start?

PM-VBRY came into effect on August 1, 2025, and applies to eligible jobs created between August 1, 2025 and July 31, 2027. The government has set a target of bringing around 1.92 crore first-time workers into the formal workforce as part of the overall employment-generation target.

Government has already started distributing benefits

The scheme has already moved beyond the announcement stage. On June 19, 2026, the government disbursed approximately ₹2,400 crore in incentives under PM-VBRY.

The government said that more than 70 lakh first-time employees had entered the formal workforce under the scheme since August 2025, with women accounting for nearly 30% of the beneficiaries.

How will employees receive the money?

The employee incentive is transferred through Direct Benefit Transfer. Under the scheme, payments to first-time employees are made using the Aadhaar Bridge Payment System.

The incentive is linked to continued formal employment, so simply joining a job does not mean that the entire ₹15,000 will be immediately credited. Employees must meet the applicable service-period and other conditions to receive the instalments.

What should new employees do?

If you have recently started your first formal job, make sure your EPFO and employment records are correctly maintained. Keep your UAN and Aadhaar-related information updated and check that your employer is correctly reporting your employment details.

You should also be cautious about people claiming that you need to pay a fee to receive the government incentive. Verify scheme-related information through official EPFO and government channels rather than relying on messages received on WhatsApp or social media.

Why is this scheme important?

PM-VBRY is designed to encourage young people to enter the formal workforce while giving companies an incentive to create additional jobs.

For eligible first-time employees, the incentive of up to ₹15,000 can provide additional financial support during the early stage of their careers. At the same time, the employer incentive is intended to encourage companies to expand their formal workforce.

With the scheme scheduled to cover eligible employment created through July 31, 2027, first-time employees joining EPFO-covered establishments should check whether they meet the applicable conditions and ensure that their employment records are correctly maintained.