Context
- The Prime Minister recently initiated the disbursement of ₹2,400 crore in incentives to 15 lakh beneficiaries via Direct Benefit Transfer (DBT) under the newly approved Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY).
About Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY)
- Nature of Scheme: An Employment Linked Incentive (ELI) initiative designed to support the ‘Viksit Bharat’ vision through inclusive, formal job creation.
- Financial Outlay: ₹99,446 crore.
- Operational Timeline: August 1, 2025, to July 31, 2027.
- Employment Target: Generation of over 3.5 crore new formal jobs within a two-year window.
Structural Components of the Scheme
Part A: Incentives for First-Time Employees
- Target Beneficiary: First-time formal workforce entrants registered with the Employees’ Provident Fund Organisation (EPFO).
- Salary Cap: Applicable strictly to individuals earning up to ₹1 lakh per month.
- Financial Support: The government provides EPF wage support of up to ₹15,000, disbursed in two instalments.
- Transfer Mechanism: Executed via Direct Benefit Transfer (DBT) using the Aadhaar-Based Payment System (ABPS).
- Behavioral Nudge: A designated portion of the incentive is retained in a savings or deposit account to inculcate long-term saving habits among new earners.
Part B: Incentives for Employers
- Sectoral Applicability: Available across all sectors, but specifically heavily incentivizes the manufacturing sector.
- Eligibility Criteria: Employers must hire additional staff drawing a monthly salary of up to ₹1 lakh.
- Minimum Hiring Thresholds:
- Micro/Small Firms (< 50 employees): Must hire at least 2 new employees.
- Medium/Large Firms (≥ 50 employees): Must hire at least 5 new employees.
- Duration of Support: Standard incentive support lasts for 2 years. Crucially, for the manufacturing sector, this benefit is extended into the 3rd and 4th years.
- Transfer Mechanism: Employer incentives (up to ₹3,000 per month per new employee) are credited directly into PAN-linked corporate bank accounts.
With reference to the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), consider the following statements:
I. The scheme provides wage support strictly to first-time employees earning up to ₹1 lakh per month.
II. The incentive duration for employers is universally restricted to two years across all sectors.
III. Firms with a workforce of 50 or more employees must hire a minimum of two new personnel to qualify for the scheme.
Which of the statements given above is/are correct?
(a). I only
(b) I and II only
(c) II and III only
(d) I, II, and III
Answer: a
Explanation:
Statement I is correct: The scheme targets first-time formal workforce entrants registered with the Employees' Provident Fund Organisation (EPFO) and provides EPF wage support of up to ₹15,000, which is applicable exclusively to individuals earning up to ₹1 lakh per month.
Statement II is incorrect: The duration of employer support is not universally restricted to two years. While two years is the standard duration across most sectors, the incentive period is extended into the 3rd and 4th years specifically to boost formal employment in the manufacturing sector.
Statement III is incorrect: The minimum hiring threshold is tiered based on the existing size of the firm. Companies with 50 or more employees must hire at least 5 new employees to avail the benefits, whereas the requirement to hire at least 2 new employees applies strictly to micro and small firms with less than 50 employees.