The newly approved Employment Linked Incentive (ELI) Scheme, cleared by the Union Cabinet, will officially come into effect from August 1, 2025, under the name "PM Viksit Bharat Rozgar Yojana" (PM-VBRY). The scheme aligns with the broader "Viksit Bharat" initiative, reflecting the government’s focus on fostering inclusive and sustainable job creation across the country.

Under the leadership of Prime Minister Narendra Modi, the Union Cabinet has sanctioned the scheme with a substantial financial outlay of ?99,446 crore. The primary objective is to facilitate the creation of over 3.5 crore jobs across India over a two-year period. Of these, approximately 1.92 crore beneficiaries are expected to be first-time entrants into the workforce. The scheme’s benefits will apply to jobs generated between August 1, 2025, and July 31, 2027.

Designed to support employment generation, the PM-VBRY will primarily target the manufacturing sector while also encompassing other industries. It encourages employers to expand their workforce and incentivizes new employees as well. The scheme is divided into two parts: support for first-time employees and incentives for employers.

For first-time employees registered with the Employees' Provident Fund Organisation (EPFO), the scheme will provide an incentive equivalent to one month's EPF wage (up to ?15,000), disbursed in two instalments. The first instalment will be paid after six months of continuous service, while the second will be released after 12 months, contingent upon the employee completing a financial literacy programme. To promote a savings habit, part of this incentive will be deposited into a fixed account, accessible at a later date.

Employers will also receive support under the scheme for creating additional sustained employment, especially in the manufacturing sector. Incentives of up to ?3,000 per month will be provided for two years for every new employee earning up to ?1 lakh per month. In the manufacturing sector, these incentives will extend into the third and fourth years as well.

To qualify, EPFO-registered establishments must hire at least two additional employees if they currently employ fewer than 50 people, or five if they have 50 or more employees. These additional employees must remain employed for a minimum of six months to meet the scheme’s eligibility criteria.

The benefit amount for employers will vary based on the employee's EPF wage. Employers will receive up to ?1,000 per month for each new hire earning up to ?10,000, ?2,000 for those earning between ?10,001 and ?20,000, and ?3,000 for employees earning more than ?20,000 and up to ?1 lakh per month. For those in the lowest wage bracket, the incentive will be proportional to their income.

All payments under Part A of the scheme, meant for first-time employees, will be made via Direct Benefit Transfer (DBT) using the Aadhaar Bridge Payment System. For employers, the government will transfer the incentives directly into PAN-linked bank accounts.