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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 establishments, the baseline is fixed at 20 employees. - Completed Wage Month
It means a full calendar month for which ECR is duly filed with EPFO. It is used to determine the eligibility and calculation of incentive under the scheme.- If joining is on or before the 5th of the month, then same month is treated as the first wage month.
- If after the 5th of the month, then next month is treated as the first wage month.
- Electronic Challan-cum-Return (ECR)
It means filing monthly return online with EPFO along with the specified amount of contributions. The employees for whom contributions are not received will not be considered for benefits under parts A & B, however, for the purpose of calculating the baseline, all employees shall be counted. - Employee
A person covered under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 ('EPF & MP Act, 1952'), and for whom the employer contributes to EPFO or an exempted trust.
New Employee: Joined between August 1, 2025, and July 31, 2027.
First Timer: Never contributed to EPFO before, joins during the scheme, and has UAN verified via Face Authentication on UMANG App.
Re-joinee: Previously contributed, rejoins during the scheme period, with Aadhaarauthenticated UAN.
Eligible Employee: Any new employee in respect of whom contribution is received in EPFO or Exempted Trust for at least 6 months for both the employee and the employer and whose gross wages at the time of joining the establishment is less than INR 1,00,000 per month, will be considered for incentive to Establishments under Part B of the scheme.
Old Employee: Joined before August 1, 2025, and continues, no incentive is provided under the scheme to employer. - EPF Wage
Wage on which EPF contributions are made under Section 6 of the EPF & MP Act. It is calculated as:
(Total Contribution × 100) / 24, or (Total Contribution × 100) / 20, Note: The divisors 24 and 20 represent the combined percentage of employee and employer contributions, which may be 12% + 12% = 24% or 10% + 10% = 20%, respectively, depending on the category of establishment.
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