As India strides towards its goal of “Viksit Bharat@2047,” the government is introducing strategic initiatives to bolster the economy. Announced in the 2024-25 Union Budget, the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMBVRY) is a significant employment-linked incentive scheme designed to stimulate job creation and formalize the workforce .

As your trusted advisors, Tirumalesh & Co. has prepared this guide to help you understand the scheme’s structure, benefits, and how your business can leverage this opportunity.

What is the Objective of PMBVRY?

The scheme, implemented by the Ministry of Labour and Employment through the Employees’ Provident Fund Organisation (EPFO), has a clear set of goals:

• To stimulate the generation of sustained, additional employment .
• To incentivize the formalization of India’s workforce .
• To support “first-time” employees and enhance their productivity and employability .
• To give a special impetus to employment in the manufacturing sector .

A Two-Part Incentive Structure

The PMBVRY is uniquely designed with a dual-benefit approach, supporting both new employees and the establishments that hire them .

Part A: For First-Time Employees
This part provides a one-time incentive of up to ₹15,000 to an employee who is new to the formal workforce. The financial assistance is intended to help them through their initial learning curve and offset costs related to upskilling, making them more productive members of your team from the outset .

Part B: For Employers
This is an employer-centric incentive rewarding the creation of new jobs.

• Incentive Duration: Employers in all sectors are eligible for incentives for two years for creating net additional employment.
• Focus on Manufacturing: To boost this critical sector, establishments engaged in manufacturing will receive the incentive for an extended period of four years .

Eligibility and Calculating Your Baseline: The Critical Details

The scheme is applicable to establishments registered with the EPFO. The key to unlocking the benefits under Part B lies in understanding and exceeding your “employment baseline” .

The baseline is the benchmark against which your company’s job creation will be measured. It is determined as follows:

• For Establishments Registered Before August 1, 2024: The baseline is the average number of employees from your ECR filings for the 12-month period from August 2024 to July 2025 .
• For Establishments Registered Between August 1, 2024, and July 31, 2025: The baseline is the average number of employees for all months of operation until July 31, 2025 .
• For New Establishments (Registering on or after August 1, 2025): The baseline is fixed at 20 employees, in line with the mandatory EPFO registration threshold. Your business will start earning benefits for new hires over and above this number .

Key Financial and Compliance Points

• Taxation of Incentives: It is crucial to note that any incentives received under this scheme are subject to the provisions of the Income Tax Act, 1961, unless a specific exemption is ordered. These benefits are in addition to incentives from any other scheme .
• Administration & Monitoring: EPFO will develop a dedicated IT portal for the smooth implementation and monitoring of the scheme. It will also establish a grievance redressal mechanism, including a call center, to assist all stakeholders .
• Data Validation: For verification purposes, EPFO may cross-reference information with other government portals like Income Tax, GSTN, and MCA to ensure authenticity .

How Tirumalesh & Co. Can Help

The Pradhan Mantri Viksit Bharat Rozgar Yojana offers a valuable opportunity to reduce payroll-related costs and contribute to national growth. However, navigating the guidelines, calculating the baseline correctly, and ensuring full compliance is essential to maximizing the benefits.

Our team at Tirumalesh & Co. is ready to assist you with:

• Assessing your establishment’s eligibility for the scheme.
• Accurately calculating your employment baseline.
• Guiding you through the registration and claim process on the EPFO portal.
• Ensuring ongoing compliance and documentation.

Contact us today to schedule a consultation and position your business to take full advantage of the PMBVRY scheme.