FAQs

Online monthly submission of contributions by employers.

Gross wage means all emoluments received by the employee as per the terms of the employment contract.

Any employee,

• with date of joining in an establishment between 01.08.2025 and 31.07.2027 (both dates inclusive) and
• who was not a contributing member of Employees Provident Fund either with EPFO or Exempted Trust prior to 01.08.2025 and
• their Contribution is received in EPFO or exempted trust for the first time for the wage month August 2025 or thereafter.

Any employee,

• with a previous contributory membership of Employees Provident Fund either with EPFO or Exempted Trust andwith a previous contributory membership of Employees Provident Fund either with EPFO or Exempted Trust and
• joins an establishment covered under EPF and MP Act between 01.08.2025 to 31.07.2027.

“EPF Wage” means the wage on which contribution is paid in terms of Section 6 of the EPF and MP Act,1952

• As Defined in Scheme guidelines

Completed Wage Month refers to a full calendar month for which an employer has filed the Electronic Challan-cum-Return (ECR) in respect of the employees.

For the purposes of calculating benefits under the scheme:

If the employee joins on or before the 5th day of a month, then that month shall be treated as the first Completed Wage Month. If the employee joins after the 5th day of a month, then the following month be treated as the first Completed Wage Month.

The Pradhan Mantri Viksit Bharat Rozgar Yojana has been designed to stimulate sustained additional employment creation and leverage EPFO enrollment to promote formalization of the workforce, a critical step toward ensuring social security and structured employment within the organized sector by providing incentives to employees and establishments.

It supports first-time employees in their skilling journey and incentivizes establishments to create new jobs, with a special focus on labor-intensive manufacturing sectors to complement the National Manufacturing Mission.

The scheme consists of two parts:

Part A – First Timer - Provides an incentive to assist first-timer employees in navigating their learning curve before they become fully productive with completing their financial literacy course over EPO portal.

Part B – Support to Establishments with Focus on manufacturing - Aims to support sustained additional employment across all sectors and specifically provides longer incentives to establishments in the manufacturing sector.

It will incentivize establishments for 02 years for the creation of additional employment. For the establishments engaged in the manufacturing sector, the incentives will be provided for 04 years

The start date of the Pradhan Mantri Viksit Bharat Rozgar Yojana 01.08.2025.

The registration period under the scheme is for two years from 01.08.2025 for the establishments engaged in all sectors.

Under Part B the incentive period is for 02 years for all sectors and 04 Years for the establishments engaged in Manufacturing Sector.

Any Establishment can register with EPFO through SPICe+ portal of Ministry of Corporate Affairs or Sharm Suvidha Portal of Ministry of Labour & Employment.

The establishment is required to provide details of PAN/TIN, GSTN, PAN linked Bank Account Number.

“Manufacturing” means and includes activities as defined in Section 2(72) of Central Goods and Service Tax Act, 2017 as well as mentioned in GSTN certificate of the Establishment.

The "Electronic Challan cum Return (ECR) along with contributions" submitted online by the establishment each month will be used to verify contributions of both employers and employees.

Incentives will be disbursed only through Direct Benefit Transfer (DBT) using Adhar Bridge Payment System directly into the Aadhar-seeded bank account of the First Timers and directly in to the PAN-linked bank account of the employers.

Eligibility for Part B requires establishments to sustain new employees for at least six months above the baseline.

Yes, Exempted establishments under the EPF & MP Act, 1952, must file returns and open UANs through EPFO for all their employees, ensuring compliance and transparency in availing benefits.

Filing ECR: They must file the Employee Contribution Report (ECR) without contributions in the Employees' Provident Fund Organisation (EPFO), providing details of all their employees, including First Timers.

Aadhaar Authentication: For smooth implementation and transparency, exempted establishments are required to open Aadhaar authenticated Universal Account Numbers (UAN) through EPFO for all existing and new employees.

No. Establishments already registered with the Employees' Provident Fund Organisation (EPFO) are not required to undergo fresh registration under the Pradhan Mantri Viksit Bharat Rozgar Yojana.

However, these establishments are required to furnish the following details:

• PAN of the establishment
• GSTN (Goods and Services Tax Number)
• PAN-linked bank account number of the employer

No separate process is required. New establishments registering through the Shram Suvidha Portal of the Ministry of Labour & Employment or the Ministry of Corporate Affairs (MCA) Portal are automatically allotted an PF Code/EPF number at the time of incorporation or registration.

The baseline is the average number of employees considered for an establishment to measure net additional employment for incentive eligibility

For establishments registered with EPFO prior to 31.07.2024 and regularly filing ECRs with contributions:

• The baseline = Average number of employees as per ECRs over the 12 months from 01.08.2024 to 31.07.2025.

The baseline will be the average number of employees based on filed Electronic Challan-cum-Returns (ECRs) for the 12 months preceding the scheme start date 01.08.2025. ECRs with contributions must have been filed for all 12 preceding months.

Baseline will be the average number of employees for the months from the date of registration till 31.07.2025, based on ECRs filed with contributions.

The baseline will be the average number of employees from the date of EPFO registration till 01.08.2025. ECRs with contributions must be filed for all completed months during this period.

The baseline is fixed at 20 employees.

Yes. Only employees for whom contributions are paid through ECR in EPFO or Exempted Trust are counted for additionality, and eligibility calculations.

No, the baseline remains unchanged once calculated. However, if revised ECRs show a higher number of employees, that higher number will be considered for all scheme purposes.

The establishment must hire and sustain new employees (First Timers and Re-joinees) for at least six months beyond the baseline number of employees and meet the meet the threshold criteria based on baseline numbers.

• For establishments with a baseline less than 50 employees: Must add at least 2 employees over baseline.
• For establishments with a baseline 50 or more employees: Must add at least 5 employees over baseline.

There is no upper limit.

Yes. Employees with gross wages above ₹1 lakh at the time of joining will be counted for calculating threshold/additionality, but no incentive will be paid in respect of them under the scheme.

Yes. Benefits will be provided in respect of only those First Timers and Re-joinees whose gross wages are up to ₹1 lakh at the time of joining and who complete six months of employment.

• Existing establishments: Benefit period counts for 2 years across all sectors.
• Manufacturing sector: Benefit period counts for 4 years across all sectors.

→ New establishments: Benefit period counts from the date of EPFO registration for 2 years across all sectors starts and 4 years for manufacturing sector.

Incentive will be paid to the establishment in lumpsum on six monthly basis as per eligibilty.

Benefits stop for those months when the criteria are not met but restart once eligibility is regained. However, the overall scheme benefit period remains fixed.

If the net employee strength falls below the baseline, the establishment will not be eligible for incentive for that period. Once net strength rises above baseline and the threshold condition is met again, benefits resume — but the scheme period remains fixed and no extension is granted for the lost period.

No, all establishments with the same PAN will be considered as a single entity for scheme purposes.

Yes. Establishments registered with EPFO before 01.08.2025 even with employees less than 20 are eligible to avail benefits provided they meet the other criteria of scheme guidelines.

If an employer is declared bankrupt or enters into insolvency proceedings, the establishment may become ineligible for further incentives under the Pradhan Mantri Viksit Bharat Rozgar Yojana.

However, if the establishment continues to make regular EPF contributions for eligible employees despite insolvency proceedings, the incentive will continue.

If an establishment registered under the Pradhan Mantri Viksit Bharat Rozgar Yojana changes its bank account it has to update its account details, and any other details required.

Upon successful verification, future incentive payments are redirected to the updated account.

Failure to update may lead to delay or non-payment of incentive installments.

Establishments must file ECRs in time.

No. The scheme does not provide benefit to the establishment if the 6-month requirement is met across multiple units having different PAN of the establishments.

The FAT facility provided on UMANG App will be utilized UAN authentication.

It is paid in two instalments directly into the Aadhar seeded bank account of the employees.

It is a one time incentive to all the eligible First Timers.

The First Timer must:

• Complete the Financial Literacy Course, and
• Have worked for 12 completed months in the same establishment and all 12 months of ECR with contributions is filed by the establishment.

The second instalment is held in a designated savings or deposit account for a period as specified in future guidelines issued by the Ministry of Labour & Employment.

A mandatory online course covering personal finance, savings, investments, etc. available on EPFO website.

The incentive is equal to one completed month’s EPF wage, subject to a maximum of ₹15,000.

No.

Yes. Only those with FAT authenticated UAN are eligible for benefits.

If a First Timer leaves the establishment voluntarily or due to unforeseen circumstances before 06 months then they are not eligible for first installment.

If a First Timer leaves the establishment voluntarily or due to unforeseen circumstances after 06 months but before 12 months then they are not eligible for second installment.

If the employee has a UAN but has never had contributions credited to EPFO or an Exempted Trust before the scheme's start date, and the first contribution is received during the scheme registration period, they are considered a First Timer under the scheme.

They will becomes eligible for the incentives under Part A, provided all other conditions (biometric Aadhaar authentication, continuous ECRs, completion of Financial Literacy course, etc.) are fulfilled.

If an employee was previously a contributing member in an Exempted Trust and now joins EPFO or vice versa, they cannot qualify as a First Timer.

They must complete 6 months of employment in the same establishment for first installment and 12 months of employment also in the same establishment for second installment

Completed Wage Month refers to a full calendar month** for which an employer has filed the Electronic Challan-cum-Return (ECR) with the Employees’ Provident Fund Organisation (EPFO) in respect of the employee.

For the purposes of calculating benefits under the scheme:

If the employee joins on or before the 5th day of a month, then that month shall be treated as the first Completed Wage Month. If the employee joins after the 5th day of a month, then the following month be treated as the first Completed Wage Month.

Incentives for employees are paid via Direct Benefit Transfer (DBT) through the Aadhaar Bridge Payment System to their Aadhaar-seeded bank accounts.

Incentives to establishments are paid via Direct Benefit Transfer (DBT) to the PAN/TAN-linked bank account of the establishment.

Payment of incentives to the employee will be suspended until the bank account is Aadhaar-seeded. However, incentives will continue to accrue. Once Aadhaar seeding is done, all pending payments, including arrears, will be released as per the scheme guidelines.

Incentives, to the employee or employer as the case may, be will stop if:

• A First Timer leaves the employment voluntarily or otherwise.
• The beneficiary (employee) passes away or in case of similar eventualities.
• The establishment closes down or is wound up.
• There is any misrepresentation or fraud detected

The payment of incentive will be done only on the basis of Net employment generated above the baseline as calculated and meeting of threshold criteria.

yes

Employees who join the establishment after the end of the Scheme registration period are not eligible for incentive benefits under the Scheme. However, for incentive to the establishment such employees will be counted while calculating the Net Additional Employment over and above the baseline and determining threshold fulfillment.

No. The scheme specifies that an establishment will be eligible to receive benefit under the scheme only once its meets the baseline and threshold criteria and has net addition of employment.

In cases where the employee and employer contributions differ, the EPF wage shall be considered based on the lesser of the two. This is to ensure uniformity in wage calculation and avoid inflation of reported wages through higher voluntary contributions by employees.

The establishment who files the ECR with contribution will only be eligible to claim incentives under the Pradhan Mantri Viksit Bharat Rozgar Yojana.

Yes

Exempted establishments must file returns as prescribed by EPFO for each month to avail benefits. For baseline calculation, they need to submit ECRs with employee details for the 12 months preceding August 2025 (from August 2024 to July 2025).

Yes, exempted establishments are required to open Aadhaar-authenticated Universal Account Numbers (UANs) for all existing and new employees through EPFO. The FAT facility on the UMANG portal can be used to register these employees.

There is no separate requirement for registration under the scheme. All the establishments including the exempted establishments are deemed to be registered under the scheme. They are required to take following actions:

• Filing ECR: They must file the Employee Contribution Report (ECR) without contributions in the Employees' Provident Fund Organisation (EPFO), providing details like joining date, amount of gross salary, amount of contribution etc of all their employees, including First Timers.
• Timely Submission: For calculation of baseline, the exempted establishments are required to file ECRs for 12 months from wage month of August, 2024 to July, 2025 and for availing incentives under the Scheme, they have to file ECRs providing all the details of their employees (existing & new) regularly with EPFO.
  For incentives under Part A of the scheme, exempted establishments are required to file 12 months’ ECRs within 18 months from the date of joining of each First Timer in the establishment. Out of these 12 months' ECRs, first installment under Part A will be provided to the First timers only after receipt of six continuous months' ECRs. However, second instalment will become eligible after filing of total 12 months' ECRs filed during period of 18 months. This relaxation is only for providing incentives under Part A.
• Aadhaar Authentication: For smooth implementation and transparency, exempted establishments are required to open Aadhaar authenticated Universal Account Numbers (UAN) through EPFO for all existing and new employees.
  Further, all exempted establishments are required to provide details like GSTN Certificate, PAN number, PAN linked Bank Account Number etc.

EPFO provides online grievance redressal facility.

The IT system being developed for effective implementation of the scheme will decide all the main criterion of the scheme like Baseline, eligibility of the employees under Part A, eligibility of the employer for incentive during each month under Part B, calculation of amount of incentive during each month, net additionality during each month, compliance with threshold criteria for each month etc.