Why in News?
Prime Minister disbursed incentives amounting to approximately ₹2,400 crore under the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), an Employment-Linked Incentive (ELI) scheme. This disbursement aims to accelerate formal job creation and workforce integration into social security systems.
Key Facts for Prelims: PM-VBRY
- Full Form: Pradhan Mantri Viksit Bharat Rozgar Yojana
- Type: Employment-Linked Incentive (ELI) Scheme
- Nodal Ministry: Ministry of Labour and Employment
- Operational Period: August 1, 2025 – July 31, 2027
- Target: Generate over 3.5 crore new formal jobs
- Core Objective: Promote workforce formalization (bringing workers into the EPFO ecosystem)
- The scheme operates via two components targeting first-time EPFO enrollees and their employers
Static Exam Link: Employment Formalization in India
The scheme is implemented through the Employees’ Provident Fund Organisation (EPFO). A key challenge for India is the large informal workforce (~90% of total employment). ELI schemes bridge this by making formal hiring financially attractive for employers.
- EPFO functions under the Ministry of Labour and Employment
- Governed by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
- Disbursements are made via Direct Benefit Transfer (DBT)
Quick Revision Table: PM-VBRY at a Glance
| Parameter | Detail |
|---|---|
| Scheme Type | Employment-Linked Incentive (ELI) |
| Ministry | Labour and Employment |
| Duration | Aug 2025 – Jul 2027 |
| Job Target | 3.5 crore new formal jobs |
| Disbursed Amount | ₹2,400 crore |
| Delivery Mechanism | DBT via EPFO |
Trap / Confusing Points
| Confusion | Correct Fact |
|---|---|
| PM-VBRY vs PMEGP | PM-VBRY is an ELI scheme for formal employment; PMEGP is for self-employment/micro-enterprises |
| Ministry of Finance vs Labour | PM-VBRY is under Labour and Employment, not Finance |
| All employees eligible? | Primarily targets first-time formal employees entering EPFO ecosystem |
| Scheme duration | Two years: Aug 2025–Jul 2027 (not a permanent scheme) |
Practice MCQs
1. PM-VBRY is administered by which Ministry?
a. Ministry of Finance
b. Ministry of Labour and Employment
c. Ministry of Skill Development
d. Ministry of Commerce
Ans: B
PM-VBRY is an Employment-Linked Incentive (ELI) scheme under the Ministry of Labour and Employment.
2. What is the primary objective of PM-VBRY?
a. Support MSME exports
b. Generate 3.5 crore new formal jobs and promote formalization
c. Provide housing for industrial workers
d. Subsidize skill training institutes
Ans: B
PM-VBRY targets 3.5 crore new formal jobs via Employment-Linked Incentives through EPFO.
3. PM-VBRY is operationally linked to which body for disbursement?
a. SEBI
b. NaBFID
c. EPFO
d. SIDBI
Ans: C
Disbursements are routed through EPFO under the DBT mechanism.
4. What is the operational period of PM-VBRY?
a. April 2025 – March 2027
b. August 2025 – July 2027
c. January 2025 – December 2026
d. October 2024 – September 2026
Ans: B
PM-VBRY operates from August 1, 2025 to July 31, 2027.
5. ELI schemes primarily address which employment challenge in India?
a. Brain drain
b. Agricultural unemployment
c. Informalization of workforce
d. Public sector job freeze
Ans: C
ELI schemes aim to shift workers from informal to formal employment by incentivizing EPFO enrollment.
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