PMVBRY Explained: How Employers Can Earn Up to ₹3,000 per New Hire
October 5, 2026
611
Every additional employee you bring into EPF can now earn your organisation up to ₹3,000 a month. That is the core promise of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY), the Government of India’s Employment Linked Incentive scheme.
The scheme rewards both sides of a new hire: first-time employees get a one-time incentive, and employers get a monthly incentive for every additional employee they add. With the EPF wage ceiling moving to ₹25,000, it also gives employers a practical way to offset higher PF costs.
The scheme at a glance
PMVBRY covers jobs created between 1 August 2025 and 31 July 2027. It aims to promote job creation, formalise the workforce and widen social security coverage.
| Feature | Detail |
|---|---|
| Hiring window | 1 Aug 2025 to 31 Jul 2027 |
| Scheme outlay | ₹99,446 crore |
| Jobs targeted | 3.5 crore+ |
| Payment mode | Direct Benefit Transfer (DBT), within 45 days of eligibility |
Part A: up to ₹15,000 for first-time employees
Part A is a one-time incentive for employees joining EPF for the first time. It equals one month’s EPF wage, capped at ₹15,000.
- Who qualifies: first-time EPF members with a gross wage of up to ₹1 lakh at joining.
- How it is paid: ₹7,500 after 6 months of service; the balance after 12 months and completion of the EPFO financial literacy course.
- What the employee needs: a UAN activated through face authentication on UMANG, and an Aadhaar-seeded bank account.
- Earlier EPF members: not covered under Part A, but the employer can still claim Part B for them.
Part B: up to ₹3,000 a month for employers
Part B pays employers a monthly incentive for each additional employee they bring into EPF. Unlike Part A, it covers both first-time employees and earlier EPF members.
- Who qualifies: additional employees with a gross wage of up to ₹1 lakh, retained for at least 6 months.
- Minimum hiring: at least 2 additional employees if your EPF baseline is under 50, or at least 5 if it is 50 or more.
- Duration: 2 years; extended to 4 years for the manufacturing sector.
- How it is paid: every six months, to the employer’s PAN-linked bank account.
The monthly incentive depends on the additional employee’s EPF wage:
| EPF wage of the additional employee | Incentive per employee, per month |
|---|---|
| Up to ₹10,000 | Up to ₹1,000 |
| ₹10,001 to ₹20,000 | ₹2,000 |
| ₹20,001 to ₹1,00,000 | ₹3,000 |
For example, a manufacturing unit that adds 10 employees earning over ₹20,000 each could claim ₹30,000 a month, or about ₹14.4 lakh over four years.
Why it matters now: the ₹25,000 wage ceiling
The EPF wage ceiling rises to ₹25,000 from 17 September 2026. For employees whose PF was earlier capped at ₹15,000, employer PF cost goes up by about ₹1,200 a month per employee.
Part B can offset much of this increase on new hires. An additional employee earning above ₹20,000 brings a ₹3,000 monthly incentive, comfortably more than the extra PF cost.
One caution: do not reduce statutory wages to contain PF costs. The better route is to bring every eligible employee into EPF and claim the incentive.
What employers should do now
- Identify employees still outside social security and enrol them in EPF.
- Confirm your EPF baseline headcount, so you know whether you need 2 or 5 additional employees to qualify.
- Make sure new joiners have face-authenticated UANs and Aadhaar-seeded bank accounts.
- Check that your organisation’s bank account is linked to its PAN for Part B payouts.
- Track the retention of each additional employee, since incentives apply only after 6 months of service.
- Keep statutory wages intact while restructuring for the new wage ceiling.