The Government of India has launched the PM Viksit Bharat Rozgar Yojana (PMVBRY 2025), also called the Employment Linked Incentive (ELI) Scheme, to boost job creation, formalize the workforce, and support businesses in hiring more employees.
While the scheme provides direct incentives to first-time employees under Part A, its Part B focuses on employers by reducing the cost of creating new jobs. With a financial outlay of nearly ₹1 lakh crore, the scheme is expected to incentivize over 2.5 crore new jobs in just two years.
For business owners, HR managers, and entrepreneurs, understanding the benefits and conditions for employers under PMVBRY is crucial. This article explains the scheme in detail, focusing only on employer-related provisions.
1. Why PM Viksit Bharat Rozgar Yojana Matters for Employers
Hiring new employees often comes with increased costs—salary, PF contributions, training, compliance, and overheads. For small and medium businesses, this can be a major burden.
The government’s vision under PMVBRY is to share part of this cost burden by incentivizing establishments that generate sustained additional employment. Employers in all sectors are eligible, with special incentives for the manufacturing sector where job creation is vital for economic growth.
2. Eligibility criteria of Employers for PM Viksit Bharat Rozgar Yojana
The scheme is open to a wide range of businesses and organizations. To qualify, employers must:
Be registered with the Employees’ Provident Fund Organisation (EPFO).
Have a valid PAN, GST number, and PAN-linked bank account.
File Electronic Challan-cum-Returns (ECRs) regularly with PF contributions.
Generate net additional employment over a set baseline.
What is the baseline of employment under PM Viksit Bharat Rozgar Yojana?
For existing establishments (registered before July 2025): baseline = average number of employees during August 2024 – July 2025.
For new establishments (registered after August 2025): baseline = 20 employees (the EPFO minimum).
To qualify, employers must create at least 2 additional jobs (if workforce < 50) or at least 5 additional jobs (if workforce ≥ 50).
3. Incentive Structure for Employers
Employers receive a direct incentive per additional employee, depending on the employee’s salary slab:
| Employee’s EPF Wage (₹) | Employer Incentive per Month (₹) |
|---|---|
| Up to 10,000 | Up to 1,000 |
| 10,001 – 20,000 | 2,000 |
| 20,001 – 1,00,000 | 3,000 |
Key Points:
Incentives are given for 2 years for all sectors.
For manufacturing sector establishments, incentives continue for 4 years.
Incentives are paid in lump sum every six months.
The government transfers the amount directly to the PAN-linked bank account of the establishment.
👉 Example:
If a factory with 100 employees hires 20 new eligible workers at an average EPF wage of ₹18,000, the employer receives:
20 × ₹2,000 = ₹40,000 per month incentive
= ₹4,80,000 per year for 2 years (₹9,60,000 total).
For manufacturing units, this benefit extends to 4 years, doubling the incentive.
4. Special Advantage for Manufacturing Sector under PM Viksit Bharat Rozgar Yojana
Recognizing the importance of manufacturing in job creation, the government provides extended incentives:
Duration: 4 years (instead of 2).
Coverage: Includes all labor-intensive industries such as textiles, food processing, electronics, auto-components, etc.
This is a huge relief for manufacturers who often face fluctuating demand cycles but need to maintain stable employment levels.
5. Conditions and Compliance for Employers
To ensure fairness, the scheme has strict compliance rules:
PF Contributions: Employers must regularly file ECRs with contributions for all eligible employees.
No Fraud or Misuse: Incentives are not available if:
The establishment has pending inquiries under EPF laws.
Fraudulent practices or fake employee data is detected.
An FIR has been filed for irregularities under PMVBRY or earlier schemes.
Sustained Employment: Incentives apply only if employees stay in the job for at least 6 months.
Salary Limit: Only employees with gross wage less than ₹1,00,000 at the time of joining are eligible.
6. How to Apply Online for PM Viksit Bharat Rozgar Yojana – Employer Registration
Employers don’t need to go through a separate manual process. The system is integrated with EPFO.
Step 1: Employer ensures PF registration and regular filing of ECR.
Step 2: New employees are added to the EPFO system with Aadhaar-authenticated UAN.
Step 3: EPFO automatically tracks additional employment and calculates eligibility.
Step 4: Incentives are released every six months directly to the employer’s PAN-linked bank account.
👉 Employers can track claims via the EPFO Portal and upcoming PMVBRY dashboard for transparency.
7. Taxation of Incentives received under PM Viksit Bharat Rozgar Yojana
Incentives received by employers under PMVBRY are treated as income and are taxable under the Income Tax Act, 1961, unless the government issues a specific exemption.
This means businesses must account for the incentive as part of their taxable income, though it still reduces the effective cost of employment.
8. Key Benefits for Employers
Here’s why the scheme is a win-win for businesses:
💰 Lower Cost of Hiring: Direct incentives reduce the financial burden of adding new employees.
🏭 Manufacturing Boost: Extended 4-year benefits make hiring in factories and industries more sustainable.
📊 Workforce Formalization: More employees join the formal sector, giving employers a more stable, compliant workforce.
⚖️ Government Partnership: The scheme signals long-term government support for job creation, reducing employer risk.
🚀 Business Expansion: Companies can scale faster with reduced hiring costs.
9. Challenges Employers Should Note
While attractive, employers should be aware of:
Strict compliance and verification requirements.
Incentives apply only for net additional jobs, not replacements.
Benefits stop if fraud or misreporting is found.
Cash flow impact since incentives are released every six months, not monthly.
FAQs
Q1. How can employers avail benefits under PM Viksit Bharat Rozgar Yojna 2025?
Employers do not need to apply separately. Once they are registered with EPFO and file PF contributions (ECRs) regularly, the incentive is automatically calculated based on new jobs created. Payments are made directly into the employer’s PAN-linked bank account.
Q2. What is the new employment scheme?
The new employment scheme is the PM Viksit Bharat Rozgar Yojna 2025, under which employers get incentives up to ₹3,000 per employee per month for creating net additional jobs. For the manufacturing sector, incentives are extended for 4 years.
Q3. What are the eligibility conditions for employers under PM Rozgar Yojna?
Employers must:
Be registered with EPFO.
Have a valid PAN, GST, and PAN-linked bank account.
File PF contributions regularly.
Create at least 2 additional jobs (if workforce < 50) or 5 additional jobs (if workforce ≥ 50).
Q4. When did PM Rozgar Yojna start?
The PM Viksit Bharat Rozgar Yojna is effective from 1st August 2025 and will remain open for registrations until 31st July 2027.
Q5. Is this scheme applicable to all sectors or only manufacturing?
The scheme applies to all sectors. However, manufacturing sector employers receive extended benefits for 4 years instead of 2, due to the sector’s importance in generating large-scale employment.
Q6. What is the minimum number of employees required for a new establishment to qualify?
New establishments must have at least 20 employees (EPFO registration threshold) and create net additional jobs above this baseline.
Q7. Can startups or newly incorporated companies avail benefits under PMVBRY?
Yes. Startups registered with EPFO and meeting baseline and threshold criteria are eligible.
Q8. How often will employers receive the incentive?
Employers will receive incentives in a lump sum every six months, based on sustained employment.
Q9. Are employers required to submit any separate claim forms?
No. The process is automated through EPFO’s Electronic Challan-cum-Return (ECR) filings. Employers only need to ensure timely PF contributions.
Q10. Can an employer get incentives for rehiring old employees?
No. Only net additional employment above the baseline is eligible. Replacements of existing employees are not counted.
Q11. What happens if an employer fails to file EPFO returns on time?
If ECRs are not filed on time, the employer may lose eligibility for that period and will not receive incentives.
Q12. Is there any penalty for fraudulent claims under PMVBRY?
Yes. Fraudulent claims or misuse will lead to cancellation of incentives and legal action under EPF laws.