Launch of PM Viksit Bharat Rozgar Yojana
Why focus: Flagship job scheme with specific DBTs. GS3 Economy, expected How-Many-Correct on eligibility caps and quantitative targets.
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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Scheme Nomenclature and Scope: BEFORE it was known in the Budget as the Employment Linked Incentive Scheme; NOW it is operationalised as the PM Viksit Bharat Rozgar Yojana (PM-VBRY) with a targeted Rs 99,446 crore outlay.
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Dual Incentive Structure: BEFORE schemes generally targeted either the employer or the employee; NOW PM-VBRY Part A gives up to Rs 15,000 to first-time employees, while Part B gives up to Rs 3,000 per month to employers for each new hire.
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Mandatory Financial Literacy: BEFORE wage subsidies were unconditional cash transfers; NOW the second installment of the Part A subsidy requires the employee to complete a compulsory online financial literacy course.
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Savings Mandate: BEFORE cash benefits were fully liquid; NOW a portion of the employee incentive is held in a savings-linked instrument with delayed withdrawal to promote saving habits.
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Tenure based on Sector: BEFORE employer subsidies had uniform tenures; NOW standard sectors receive Part B incentives for 2 years, while the manufacturing sector receives them for 4 years.
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Minimum Hiring Thresholds: BEFORE subsidies often applied to any new hire; NOW firms with less than 50 employees must hire at least 2, and firms with 50 or more must hire at least 5 new employees to unlock Part B benefits.
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Disbursement Channels: BEFORE payment mechanisms varied; NOW Part A uses the Aadhaar Bridge Payment System (ABPS) for Direct Benefit Transfer, and Part B credits directly to the employer's PAN-linked bank account.
What Did NOT Change
Despite the structural overhaul, the scheme continues to strictly use registration with the Employees' Provident Fund Organisation (EPFO) as the sole metric for 'formal' employment, leaving unorganised gig workers outside its ambit. The salary cap also remains restricted, applying only to individuals earning up to Rs 1 lakh per month to ensure the benefits target entry-level and mid-level workers rather than high-income earners.
Prelims Angle
NCERT Connection
Common Misconceptions
✗ The PM-VBRY only supports the manufacturing sector.
✓ The scheme supports job creation across all sectors for a 2-year period. However, the manufacturing sector receives an extended benefit period of 4 years under Part B.
The scheme was heavily advertised with a 'special focus on manufacturing' to boost the Make in India initiative, leading to the assumption that services and agriculture-allied sectors were excluded.
✗ First-time employees receive the Rs 15,000 benefit as an immediate sign-on bonus.
✓ The Rs 15,000 is paid in two installments: the first after 6 months of continuous service, and the second after 12 months, contingent upon completing a financial literacy course.
Headline announcements simply stated 'Rs 15,000 wage support for first-timers', obscuring the strict retention and literacy conditionalities attached to the payout.
Practice Questions
Q1
How Many CorrectConsider the following statements regarding the PM Viksit Bharat Rozgar Yojana (PM-VBRY): 1. The scheme is applicable only to first-time employees who are entering the formal workforce with a monthly salary of up to Rs 1 lakh. 2. Under Part B of the scheme, employer incentives for the manufacturing sector are provided for a duration of 4 years. 3. The scheme strictly requires employers to credit the wage subsidy into the employee's bank account along with their monthly salary. How many of the above statements are correct?
Q2
Match the FollowingMatch the features of the PM Viksit Bharat Rozgar Yojana (List I) with their corresponding criteria (List II). List I (Feature) A. Part A Disbursement mechanism B. Part B Disbursement mechanism C. Minimum new hires for a firm with more than 50 employees D. Condition for the second installment of employee subsidy List II (Criteria) 1. Completion of a financial literacy programme 2. Minimum 5 additional employees 3. PAN-linked bank account 4. Aadhaar Bridge Payment System (ABPS) Select the correct answer using the code given below:
Q3
Assertion & ReasonAssertion (A): Under the PM Viksit Bharat Rozgar Yojana, a portion of the first-time employee's incentive is mandatorily held in a savings-linked instrument with delayed withdrawal. Reason (R): The government intends to lower its immediate fiscal deficit by deferring cash outflows for the current financial year. Select the correct answer from the codes given below: