Employment Linked Incentive Scheme - Pradhan Mantri Viksit Bharat Rozgar Yojana

• Published date: 14 November 2025
• Law Firm: Aurtus Consulting LLP
• Author: Aurtus Consulting LLP

Background

The Pradhan Mantri Viksit Bharat Rozgar Yojana is a government initiative aimed at promoting employment generation and workforce formalisation in India. By providing targeted incentives to both employers and employees, the scheme seeks to encourage the creation of sustained additional employment opportunities and enhance overall employability.

The scheme will be implemented by the Ministry of Labour and Employment through the Employees' Provident Fund Organisation (EPFO).

The scheme consists of two parts:

• Part A focuses on the benefits to First-time Employees joining EPF on or after 1 August 2025, with gross wages up to INR 1,00,000 per month at the time of joining.
• Part B focuses on the benefits to Establishments or Employers hiring additional employees who are either first timers or re-joinees, subject to fulfilling the threshold criteria with gross wages up to INR 1,00,000 per month.

Under Part A, the scheme assists first-time employees in their learning by covering upskilling costs and promoting financial literacy to enhance their productivity and financial awareness.

Part B focuses on incentivising employment across all sectors, with special emphasis on the manufacturing sector, to build a more formal, dynamic, and youth-driven labour market.

Definitions

Aadhaar

Refers to the Aadhaar Number as defined under the Aadhaar Act, 2016.

Baseline

For establishments registered with EPFO for more than 12 months before August 1, 2025, it is the average number of employees during the previous 12 months.

For those registered for less than 12 months, before August 1, 2025, it is the average number of employees for all months up to July 31, 2025.

For new...