Understanding the PM-VBRY Scheme
Launched on August 1, 2025, the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) is a government initiative designed to boost formal employment and expand social security. Implemented by the Ministry of Labour & Employment through the Employees' Provident
Fund Organisation (EPFO), the scheme aims to create over 3.5 crore jobs by its conclusion on July 31, 2027. It operates on a two-pronged incentive model. The first part targets first-time employees, offering them a one-time financial incentive of up to ₹15,000. The second part provides incentives to employers for creating additional jobs, with special benefits for the manufacturing sector. The core objective is to encourage young people to join the organised workforce via EPFO registration, thereby gaining access to crucial social safety nets.
The Landmark 72 Lakh Figure
Within its first year of operation, PM-VBRY has facilitated the entry of more than 72 lakh first-time employees into the formal workforce. This figure, announced in August 2026, marks a significant achievement for the scheme. These are individuals who have never before been members of the EPFO, representing a substantial expansion of the formal labour market. The data also highlights a positive trend towards gender inclusion, with nearly 30 percent of the new beneficiaries being women. The scheme has already begun disbursing benefits, with over 15 lakh beneficiaries receiving employment-linked incentives. This influx of new workers is a key indicator of the scheme's effectiveness in drawing previously unorganised labour into the formal, documented economy.
The Crucial Link to Social Security
The integration of these 72 lakh workers into the formal sector is not just about a job; it's about providing access to a stable social security framework. By registering with the EPFO, these employees are automatically enrolled in schemes like the Employees' Provident Fund (EPF). This means a portion of their salary, matched by their employer, goes into a retirement savings fund. For many, this is their first-ever access to a structured pension and insurance plan. The PM-VBRY itself strengthens this by making EPFO registration a core component. Furthermore, the scheme includes a financial literacy component, required for employees to receive their full incentive, which aims to promote long-term savings habits and financial security.
Broader Implications for India’s Workforce
The success of PM-VBRY is a key development in India's broader goal of workforce formalisation. A large informal sector has long been a challenge for the Indian economy, leaving millions without job security or social benefits. Schemes like PM-VBRY, and its predecessors like the Atmanirbhar Bharat Rojgar Yojana (ABRY), are designed to tackle this by making formal employment more attractive for both companies and workers. By bringing a large cohort of young, first-time job seekers directly into the organised sector, the government is building a more secure and productive talent pool. This shift not only provides individual security but also contributes to a more stable national economic structure by increasing the tax base and creating more reliable economic data.
The Road Ahead for Social Security
While the 72 lakh figure is a milestone, the journey towards comprehensive social security is ongoing. The government's focus is now expanding, with the new Code on Social Security aiming to extend protections to gig and platform workers, who represent a rapidly growing segment of the workforce. Union Labour and Employment Minister Mansukh Mandaviya has confirmed that the labour codes are being implemented to ensure gig workers receive benefits. As schemes like PM-VBRY mature and new frameworks under the Social Security Code are operationalised, the goal is to create a universal safety net that covers all forms of employment, ensuring that India's demographic dividend translates into secure and inclusive growth.
