Introduction
Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY):In a decisive move to boost formal employment and youth inclusion, the Government of India has launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY)—formerly the Employment-Linked Incentive (ELI) scheme. A key feature under Scheme A grants a one-time financial incentive of up to ₹15,000 to individuals entering formal employment for the first time in the private sector.
Key Highlights
- Eligibility:
- Must be a first-time employee enrolled with the Employees’ Provident Fund Organisation (EPFO) or exempted trust.
- Monthly salary must be ₹1 lakh or below.
- Employment must commence between August 1, 2025, and July 31, 2027.
- Incentive Details:
- Eligible employees receive one month’s EPF-equivalent wage, capped at ₹15,000.
- Disbursed in two instalments:
- First instalment after 6 months of continuous employment.
- Second instalment after 12 months and successful completion of a mandatory financial literacy programme.
- Part of the second instalment is directed into a fixed-term savings instrument, encouraging long-term financial security.
- Scale & Reach:
- The scheme is projected to benefit around 1.92 crore first-time employees, contributing substantially to youth employment generation.
Why This Scheme Matters for UPSC Aspirants
- GS Paper II (Governance & Public Policy): Demonstrates the role of targeted incentives in labor policy and formalization of employment.
- GS Paper III (Economy & Social Inclusion): Highlights initiatives promoting financial inclusion, youth economic empowerment, and the link between formal employment and social security.
- Prelims 2025: Important terms — PM-VBRY, Scheme A, EPFO, first-time jobs, financial literacy component.
Possible UPSC Prelims Questions
Q1. The Government of India’s direct financial support scheme of ₹15,000 for first-time employees is primarily aimed at:
A. Encouraging formal job creation
B. Providing housing support to workers
C. Subsidizing agricultural employment
D. Promoting startup funding
(Answer: A)
Q2. The implementation of first-time employee financial support is linked to which of the following?
- Aadhaar authentication
- EPFO registration
- Direct Benefit Transfer
Select the correct answer using the code given below:
A. 1 and 2 only
B. 2 and 3 only
C. 1, 2 and 3
D. 1 only
(Answer: C
Possible UPSC Mains Question
Q. “India’s demographic dividend can only be harnessed through active employment generation policies.” Discuss in the light of the government’s direct financial support of ₹15,000 for first-time employees. (250 words)