The Ultimate PM-VBRY Quiz & Policy Deep Dive: ₹99,446 Cr Scheme Explained
India’s employment landscape is all set to shift with the introduction of the PM Viksit Bharat Rozgar Yojana (PM-VBRY)—a national-level scheme approved by the Union Cabinet to promote formal employment. With a massive outlay of ₹99,446 crore, PM-VBRY aims to generate more than 3.5 crore jobs, including 1.92 crore first-time formal sector workers, over a span of two years from August 1, 2025, to July 31, 2027.
Before diving into the policy details, many students and competitive aspirants have already tested their knowledge through our interactive 30-question quiz based entirely on the PM-VBRY scheme. That quiz was designed not just as a practice tool, but as a preview of what this ambitious policy offers. In this deep dive, we connect the dots and explore the scheme in a more analytical, conversational tone—just what serious aspirants, policy followers, and general readers need.
Key Features and Framework
PM-VBRY replaces the previous Employment Linked Incentive (ELI) Scheme, but with an expanded vision. It’s structured in two major components: Part A, which targets first-time employees with incentives; and Part B, which supports employers financially for creating formal jobs. This dual approach promotes not only hiring but also job retention and formalization in sectors that have traditionally relied on informal labor.
For first-time employees earning up to ₹1 lakh/month, the government provides incentives in two installments—the first after 6 months of continuous employment, and the second after 12 months, provided the worker completes a financial literacy training module. This unique requirement shows the government’s intent to combine employment with long-term saving habits and financial inclusion.
Employers, on the other hand, receive incentives for hiring new workers. The amount depends on the salary bracket of the new hires:
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₹1,000/month for employees earning ₹10,000 or less
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₹2,000/month for those earning ₹10,001 to ₹20,000
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₹3,000/month for employees with salaries between ₹20,001 to ₹1,00,000
To qualify, companies with fewer than 50 employees must hire at least 2 new workers, while those with 50 or more must hire at least 5. The money will be transferred directly to PAN-linked bank accounts of the employers, while employee-side benefits will be routed via the Aadhar-Based Payment System (ABPS) to ensure secure, direct benefit transfers (DBT).
| Event | Date |
|---|---|
| Scheme Start Date | August 1, 2025 |
| Scheme End Date | July 31, 2027 |
| EPFO Registration Cut-off for New Employees | July 31, 2027 |
| Second Installment Disbursal (Post 12 months) | After August 2026 (rolling) |
Special Incentives for the Manufacturing Sector
The manufacturing sector is given a special push through this scheme. While most sectors get employer incentives for only two years, the manufacturing industry is eligible for four years of incentives, provided they maintain steady employment. This makes sense, given the government’s “Make in India” push and the sector’s large job-generating potential.
Eligibility & Timeline
To be eligible, a worker must join an EPFO-registered firm between August 1, 2025, and July 31, 2027. Anyone who was already an EPFO member before August 1, 2025 is not considered a first-time employee and is therefore excluded from benefits under Part A. For employers, their EPF contributions for new hires must begin on or after August 1, 2025.
Digital Portals and Tracking
A key innovation in PM-VBRY is its dedicated online portals for both employers and employees. These platforms—likely modeled after existing portals like the EPFO and e-SHRAM systems—will offer real-time tracking, application status, and updates. This is a shift away from paperwork and middlemen, aligning with the Digital India mission.
| Feature | ELI Scheme | PM-VBRY |
|---|---|---|
| Launch Period | COVID-19 Emergency Phase | Long-term (2025–2027) |
| Budget Allocation | Approx ₹22,000 Cr | ₹99,446 Cr |
| Manufacturing Sector Incentives | No extended benefit | Extended to 4 years |
| Financial Literacy Component | Not included | Mandatory for employees |
| Tracking and Application | Limited digital interface | Dedicated PM-VBRY portal |
Why Financial Literacy Matters
A significant and somewhat under-discussed feature of the scheme is the requirement for financial literacy. First-time employees will only receive the second installment of their incentive if they complete this training. The idea is to build a workforce that not only earns but also saves and invests wisely—vital in an economy where informal labor has historically had little access to structured financial tools.
What PM-VBRY Replaces and Improves
The scheme replaces the Employment Linked Incentive (ELI) Scheme, introduced during COVID-19 to stabilize the job market. PM-VBRY is a more structured and long-term version, with a much larger budget, better targeting mechanisms, and broader scope—especially through the integration of financial training and manufacturing focus.
What It Means for Competitive Aspirants
If you’re preparing for exams like UPSC, SSC, Banking, or any state-level PSC, you should expect PM-VBRY to show up in both prelims and mains—particularly in economy, current affairs, and social development sections. Remember important figures like ₹99,446 crore total outlay, 3.5 crore jobs, and the incentive slabs. But also go deeper: understand why the scheme includes financial literacy, how it targets formalization, and what makes manufacturing a focus.
Final Thoughts
PM-VBRY is more than just another government scheme—it’s a comprehensive strategy to formalize jobs, promote savings, and bridge the gap between education and employability. By rewarding both workers and employers, and tying incentives to sustained employment and financial awareness, it marks a progressive step forward.
Whether you’re a job seeker, employer, policymaker, or competitive exam aspirant, understanding PM-VBRY in depth will give you an edge. And if you’ve already taken our quiz, this article now gives you the context and clarity behind each question—making your preparation sharper and more meaningful.
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