Nowadays, many business owners and HR managers are constantly looking for ways to cut down on operational costs without compromising on talent. This is exactly where the PMVBRY scheme becomes relevant. Hiring new staff usually means higher payroll expenses, PF contributions, and compliance headaches, making even a simple expansion plan financially complex. As a result, a small miscalculation can easily turn into major cash flow issues for growing businesses.
This is why, to avoid such conditions, smart employers are largely turning towards government incentives like the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY). Having said that, in this blog, we will discuss everything you need to know about this scheme, along with some other key factors that can make your hiring process smoother and more profitable. So, scroll down and read on for more information.
What Is PMVBRY scheme and Why It Matters for the “Job Bharat” Mission
PMVBRY scheme is basically a simple initiative by the central government to boost employment and support the job bharat mission—a vision to create more opportunities across India. Moreover, this scheme is not just about helping people get jobs; it also supports employers who are creating those jobs.
Effective from August 1, 2025, the scheme is run by the EPFO and targets two main groups: freshers joining the workforce for the first time and the companies that hire them. A typical benefit structure under this scheme involves:
- Wage support for new employees
- PF subsidy for employers
- Formalization of the workforce
Benefits for First-Time Employees (Part A)
For young professionals entering the job market, this scheme acts as a financial cushion. If a new employee joins an EPFO-registered company and earns less than ₹1 Lakh per month, they are in for some direct benefits. Basically, the government provides a one-time incentive of up to ₹15,000.
But wait, it’s not handed out all at once. To encourage long-term employment, it is split into two installments:
- First payout: After 6 months of work.
- Second payout: After 12 months (and finishing a quick online financial literacy course).
Why Employers Should Care: The Subsidy (Part B)
Indian labor laws and payroll costs can be heavy on a company’s pocket. Thus, keeping track of expenses while trying to expand the team becomes tough and difficult. This is why, as a result, more companies and organizations are registering for PMVBRY.
Truly, by utilizing this scheme, businesses gain a direct subsidy on their contribution to the EPF.
For every additional employee you hire over your “baseline” count (your staff strength as of March 31, 2025), the government reimburses a portion of the employer’s share of the PF contribution for 2 years.
- For salaries up to ₹10k: You get up to ₹1,000/month.
- For salaries between ₹10k–₹20k: You get ₹2,000/month.
- For salaries above ₹20k: You get ₹3,000/month.
Understanding the “Baseline” and Compliance
Compliance with PMVBRY is basically following all rules related to your employee count and ECR filings. Further, messing up the “baseline” calculation can lead to rejection of your subsidy claim.
On the other hand, professional payroll providers help in ensuring that your employee count is calculated correctly so nothing is missed. The following are the areas you must watch out for:
- Correct Baseline calculation (reference employee count)
- Aadhaar seeding with UAN for all new joiners
- Timely filing of the monthly ECR
- Marking new hires specifically as “PMVBRY Eligible” in the system
How to Apply: A Step-by-Step Approach
Applying for Pradhan Mantri Yojanae (government schemes) like this one often feels overwhelming because of the paperwork. However, the process is fully digital now.
- Log in to the EPFO Unified Portal with your employer credentials.
- Register your establishment for PMVBRY.
- Declare your baseline employee count.
- File your monthly return (ECR) and tag the new employees.
Once the system validates your data, the subsidy is credited directly to your bank account.
Why You Might Need Professional Help
Navigating these government portals can be tough, difficult, and complex. This is especially true for businesses or companies that are hiring rapidly. Well, this is where payroll experts come in to help.
They help organizations or businesses to stay updated with the minute changes in the notification. Moreover, with expert and professional support/help, any business can avoid the hassle of rejected claims. These services typically include:
- Eligibility checks for new hires
- Error-free ECR filing
- Subsidy tracking and reconciliation
- Handling EPFO notices
Conclusion
Selecting the right strategy for PMVBRY can help streamline your recruitment costs. From calculating baselines to ensuring timely subsidy credits, it may be an astute business choice to let experts handle the technicalities.
If you find yourself overwhelmed by managing these compliance requirements, maybe you need someone else to take care of it for you, so you can better attend to your business’s growth.
Ready to claim your PMVBRY scheme subsidies without the headache?
At Futurex Management Solutions Limited, we take all the responsibilities of payroll services and scheme compliance so that you can focus on growing your business. From handling the “job bharat” incentives to secure processing, our services ensure reliability and peace of mind.
Hiring new employees and don’t want to miss PMVBRY subsidies?
Our payroll experts ensure accurate compliance and error-free claims.