Budget 2026 allocates Rs 20,082 crore for the Employment Linked Incentive Scheme

PM-Viksit Bharat Rozgaar Yojana

• Union Budget 2026 allocates Rs 20,082 crore for PM-Viksit Bharat Rozgar Yojana
• Scheme aims to create over 3.5 crore jobs from Aug 2025 to July 2027
• Employers and first-time employees to receive incentives under two scheme parts

Did our AI summary help?

The Union Budget 2026 has allocated Rs 20,082 crore for the PM-Viksit Bharat Rozgar Yojana (PM-VBRY), aimed at pushing employment generation in the country.

For FY26, The Budget has revised its estimate for the scheme at Rs 828 crore on the scheme, which is also known as the Employment Linked Incentive Scheme. However, the Budget estimate was Rs 20,000 crore.

The PM-VBRY was unveiled on July 1, 2025. With an outlay of Rs 99,446 Crore, the scheme aims to incentivize the creation of more than 3.5 Crore jobs in the country, over a period of 2 years.

Out of these, 1.92 Crore beneficiaries will be first timers, entering the workforce. The benefits of the Scheme would be applicable to jobs created between 01st August 2025 and 31st July 2027.

The scheme, which incentivizes employers to create new employment, provides benefits for the generation of new jobs across various sectors with special focus on the manufacturing sector. It forms a crucial part of India’s strategy to accelerate economic growth through employment-led development.

According to labour ministry, the scheme has two parts.

Under Part A of the scheme, the first-time employees of both existing and new establishments shall be eligible for an incentive equivalent to one month’s Employees' Provident Fund (EPF) wage, subject to a maximum of ₹15,000.

This incentive will be payable in two instalments during the first year of employment. The first instalment, up to ₹7,500, shall be disbursed after completion of six months of continuous employment. Eligibility for the second instalment shall arise after completion of twelve months of employment and successful completion of the prescribed Financial Literacy Programme.

Part B incentivizes employers by providing up to ₹3,000 per month for each additional employment sustained for at least 6 months.