Starting a first formal job can bring several new responsibilities, including EPFO registration, salary deductions and other employment-related formalities. To encourage young people to enter the organised workforce, the government is implementing the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), which provides an incentive to eligible first-time employees and employers creating additional jobs.

The scheme completed one year of implementation on August 1, 2026. According to the government, more than 72 lakh first-time employees had joined the formal workforce since August 2025, while more than 15 lakh beneficiaries had already received employment-linked incentives.

First-Time Employees Can Receive Up to ₹15,000

Under Part A of PM-VBRY, eligible first-time employees registered with EPFO and earning wages of up to ₹1 lakh per month can receive an incentive equivalent to one month's EPF wage, subject to a maximum of ₹15,000.

The amount is paid in two instalments. The first instalment becomes payable after six months of continuous employment, while the second is linked to completing 12 months of employment and completing the prescribed financial literacy programme. A portion of the incentive is placed in a designated savings instrument to encourage long-term saving.

Who Can Qualify?

The scheme is specifically aimed at first-time employees entering formal employment. The employment must be covered through EPFO, and the employee's monthly wages must fall within the prescribed ₹1 lakh limit.

The scheme applies to eligible jobs created between August 1, 2025, and July 31, 2027. Therefore, young people joining eligible formal-sector employment during this period may fall within the scheme's coverage, subject to the detailed conditions.

Employers Can Also Receive an Incentive

PM-VBRY is not limited to employees. Under Part B, eligible employers creating additional employment can receive an incentive of up to ₹3,000 per month for each additional employee for two years, provided the required conditions are met.

For the manufacturing sector, the incentive period can be extended to the third and fourth years. The government says this structure is intended to encourage businesses to create jobs and retain employees for longer periods.

The Scheme Is Being Implemented Digitally

One of the important features of PM-VBRY is its digital, EPFO-linked implementation. The government says the process uses Aadhaar-based authentication, Universal Account Numbers and Electronic Challan-cum-Return filings.

For eligible first-time employees, incentives are transferred directly to Aadhaar-linked bank accounts through Direct Benefit Transfer. The government also says UAN authentication through Face Authentication Technology on the UMANG App is required for incentives.

More Than 3.5 Crore Jobs Targeted

PM-VBRY has a total outlay of ₹99,446 crore and aims to facilitate the creation of more than 3.5 crore jobs over the two-year period. Of these, around 1.92 crore beneficiaries are expected to be first-time entrants into the formal workforce.

The government says the scheme is intended not only to increase employment but also to expand social-security coverage by bringing more workers into the formal EPFO-linked system.

What Should New Employees Do?

Anyone starting their first formal job should keep their employment and EPFO records accurate, ensure their UAN is properly authenticated and maintain the required bank and Aadhaar details. Employees should also check their eligibility through official PM-VBRY and EPFO channels rather than relying on private agents.

The official PM-VBRY portal provides information about the scheme, eligibility and implementation process.