What is PM-VBRY Scheme B (Employer-Side Incentive)?
The Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) incorporates an aggressive employer-linked job creation package designated as Part B (Scheme B). Designed to incentivize organized formal hiring across India's industrial sector, the Central Government reimburses employers up to ₹3,000 per month per additional employee to offset mandatory employer provident fund contributions.
Net Headcount Addition Thresholds
To prevent artificial churning of existing payrolls, the scheme mandates strict net headcount additions over the baseline Electronic Challan cum Return (ECR) headcount:
- Establishments with fewer than 50 employees: Must add and maintain at least 2 new formal employees.
- Establishments with 50 or more employees: Must add and maintain at least 5 new formal employees.
Tenure: 2 Years vs 4 Years for Manufacturing
| Parameter | Non-Manufacturing / Services | Manufacturing Industry |
|---|---|---|
| Maximum Subsidy Rate | Up to ₹3,000 / employee / month | Up to ₹3,000 / employee / month |
| Incentive Duration | 24 Months (2 Years) | 48 Months (4 Years Extended) |
| Eligible Monthly Wage Cap | Gross Salary up to ₹1,00,000 | Gross Salary up to ₹1,00,000 |
Frequently Asked Questions (FAQs)
1. How is Part B different from Part A of PM-VBRY?
Part A is a direct employee benefit transfer (up to ₹15,000 in 3 installments) paid directly to the newly hired worker's account. Part B is an employer subsidy reimbursing the company's EPFO contribution share.
2. What happens if an additional employee leaves the organization?
The establishment must maintain the net additional headcount. If an employee resigns, the employer has a grace window to replace them to maintain the required baseline addition and continue receiving the subsidy.
Statutory Authority: Ministry of Labour and Employment Guidelines for PM Viksit Bharat Rozgar Yojana Part B (Scheme B) & Union Budget Framework 2024–2026.
PM Viksit Bharat Rozgar Yojana: Employment-Linked Incentive Structure
The Employment-Linked Incentive (ELI) Scheme unveiled under Budget 2024–25 provides structured government support to incentivize formal employment growth:
- Scheme A (First-Time Employees): One-month wage subsidy up to ₹15,000 disbursed directly to the bank account (DBT) of first-time formal employees registered with EPFO, split across three instalments.
- Scheme B (Manufacturing Sector Job Creation): Direct employer incentive covering up to 24% of EPFO contribution (12% employer + 12% employee) for the first two years of employment for additional jobs created.
- Scheme C (Support to Employers in All Sectors): Government reimbursement of up to ₹3,000 per month towards employer EPFO contributions for each additional employee for two consecutive years.