Updated
Updated · ddindia.co.in · Aug 3
India's PM-VBRY Adds 72 Lakh First-Time Formal Workers in 1 Year
Updated
Updated · ddindia.co.in · Aug 3

India's PM-VBRY Adds 72 Lakh First-Time Formal Workers in 1 Year

3 articles · Updated · ddindia.co.in · Aug 3

Summary

  • More than 72 lakh first-time employees joined India’s formal workforce in PM-VBRY’s first year since its August 1, 2025 launch, marking the latest milestone for the employment-linked incentive scheme.
  • ₹99,446 crore has been earmarked for the programme, which runs through July 31, 2027 and aims to generate over 3.5 crore jobs, including 1.92 crore first-time workers, through an EPFO-linked framework.
  • First-time employees earning up to ₹1 lakh a month can receive a one-time incentive capped at ₹15,000, while employers get up to ₹3,000 a month for two years per eligible additional hire—longer in manufacturing.
  • More than 15 lakh beneficiaries have already received incentives, with women accounting for nearly 30% of beneficiaries, as the government pushes formalisation and social-security coverage through EPFO registration and DBT-based payments.

Insights

Will the 72 lakh newly formalized workers keep their jobs once the government's cash incentives run out?
Can a Rs 15,000 bonus truly fix India's massive informal labor crisis, or is it just a temporary patch?
Are businesses actually creating new jobs, or merely shifting informal workers onto the books to grab government subsidies?