PMVBRY Scheme 2025–27:
Complete Employer Guide to Registration,
Eligibility & Incentives
1. What Is PMVBRY?
PMVBRY stands for Pradhan Mantri Viksit Bharat Rozgar Yojana. It is the Employment Linked Incentive (ELI) scheme announced in the Union Budget 2024–25 and approved by the Union Cabinet on 1 July 2025, with a total outlay of ₹99,446 crore.
The scheme runs from 1 August 2025 to 31 July 2027. It is administered by the Ministry of Labour and Employment (MoLE) and implemented through the Employees’ Provident Fund Organisation (EPFO). The official portal is pmvbry.epfindia.gov.in.
Its three stated objectives are: generating sustained additional employment, formalising the workforce, and enhancing employability — with a special focus on the manufacturing sector.
2. Part A vs Part B — Key Differences
| Feature | Part A — Employee Incentive | Part B — Employer Incentive |
|---|---|---|
| Who benefits | First-time formal sector employees | EPFO-registered employers |
| Amount | Up to ₹15,000 (one-time, 2 instalments) | ₹1,000–₹3,000/month/employee |
| Duration | One-time incentive | 2 years (4 years for manufacturing) |
| DBT to | Employee’s Aadhaar-linked bank account | Employer’s PAN-linked bank account |
| Condition | FAT UAN + Financial Literacy Course for 2nd instalment | 6-month continuous employment + both criteria met |
| Salary cap | Joining gross wages ≤ ₹1,00,000/month | Employee wages ≤ ₹1,00,000/month |
3. Incentive Rates for Employers (Part B)
Incentives under Part B are calculated per eligible employee per month, based on their EPF wages. They are released every 6 months via DBT:
| Employee Monthly EPF Wages | Monthly Incentive | Total (2 Years) | Total — Manufacturing (4 Yrs) |
|---|---|---|---|
| Up to ₹10,000 | ₹1,000 / employee | ₹24,000 | ₹48,000 |
| ₹10,001 – ₹20,000 | ₹2,000 / employee | ₹48,000 | ₹96,000 |
| ₹20,001 – ₹1,00,000 | ₹3,000 / employee | ₹72,000 | ₹1,44,000 |
| ★ Manufacturing sector employers receive the incentive for 4 years, doubling the total benefit. Salary band is assessed at the time of each completed wage month. | |||
4. Eligibility Conditions
4a. Employer Eligibility
To claim Part B incentives, the establishment must:
- Be registered with EPFO (existing or new establishment)
- Hold a valid PAN, GSTIN, and have a PAN-linked bank account for DBT receipt
- File Electronic Challan-cum-Return (ECR) regularly with PF contributions — no gaps
- Generate net additional employment above the baseline, satisfying both Criteria 1 and Criteria 2 (see Section 6)
- Not be under investigation under Sections 7A / 7B / 7C of the EPF & MP Act, 1952
- Have no pending legal inquiries or compliance appeals under EPFO
- Not be implicated in fraud where an FIR has been filed by EPFO
4b. Employee Eligibility & FAT Authentication
Each employee counted under PMVBRY must satisfy all of the following:
- Monthly joining gross wages do not exceed ₹1,00,000
- Is a first-time EPFO member (no prior UAN) or a re-entrant who had prior EPFO membership and is rejoining a registered establishment during the scheme period
- Age between 18 and 54 years
- Indian resident with an Aadhaar-linked bank account
- UAN must be generated / authenticated via Face Authentication Technology (FAT) on the UMANG app
- Employer AND employee contributions must be received by EPFO for a minimum of 6 months (counted from the first complete month) before the incentive instalment is released
This applies to both first-time joiners and re-hired employees with existing UANs. An employee whose UAN is not FAT-authenticated does NOT count as an eligible employee under PMVBRY, regardless of all other conditions being met. Ensure every new hire completes FAT on the UMANG app before their first ECR is filed.
5. Baseline Calculation — The Critical Number
The baseline is the reference employee count against which new hires are measured. Incentives are paid only for employees hired above this number. Getting this calculation right is the single most important step in PMVBRY compliance.
🏢 Existing Establishment
- EPFO-registered > 12 months before 1 Aug 2025:
Baseline = Average employees across ECRs filed from August 2024 – July 2025 - EPFO-registered < 12 months before 1 Aug 2025:
Baseline = Average of employees for months actually filed up to 31 July 2025 - All ECRs for Aug 2024–Jul 2025 must be filed by 31 January 2026
🆕 New Establishment
- Registered with EPFO between 1 Aug 2025 and 31 Jul 2027
- Baseline is fixed at 20 employees (EPFO minimum registration threshold)
- Incentives apply only to hires above 20, once the threshold criterion is also met
- No ECR history required — baseline is statutory
Minimum Threshold (Often Missed)
Meeting the baseline alone is not enough. You must also cross the minimum hiring threshold to activate eligibility:
| Establishment Baseline | Minimum Additional Hires Required per Year |
|---|---|
| Baseline < 50 employees | At least 2 additional employees above baseline |
| Baseline ≥ 50 employees | At least 5 additional employees above baseline |
Hiring fewer than this minimum means zero incentive for that year, regardless of all other conditions being correct.
6. Criteria 1 & Criteria 2: The Two Eligibility Gates
Both criteria must be satisfied for the employer incentive to be released for a given 6-month period. Think of them as two separate gates — both must open:
≥ Baseline + Threshold
≥ Baseline + Threshold
7. How Incentives Are Paid (DBT Cycle)
Incentives are released in arrears every 6 completed wage months. EPFO calculates the incentive for the preceding 6 months and transfers via DBT directly to your PAN-linked bank account:
| Instalment | Covers | Credited After |
|---|---|---|
| 1st | Months 1–6 | End of Month 6 |
| 2nd | Months 7–12 | End of Month 12 |
| 3rd | Months 13–18 | End of Month 18 |
| 4th | Months 19–24 | End of Month 24 |
| Manufacturing sector: 4 additional instalments covering Months 25–48 | ||
A “Completed Wage Month” means a full calendar month for which the ECR has been duly filed and contributions received by EPFO. If an employee joins on or before the 5th of a month, that month counts as the first completed wage month.
8. DBT Errors & Remedies
Incentive payments are disbursed via the PFMS (Public Financial Management System) DBT infrastructure. If your payment is rejected or delayed, the cause is almost always a bank account validation failure. Common reasons include:
- Incorrect IFSC code or bank account number submitted on the portal
- Bank account not linked to the PAN submitted
- Account is inactive, frozen, or closed
- Name mismatch between PAN records and bank account holder name
- Account type not supported for DBT (certain types of current accounts)
pfms.nic.in — PFMS Validation & Payment Rejection Remedies (PDF)
To prevent DBT failures before they happen:
- Verify your PAN-to-bank-account linkage is active before registering
- Use a current account in the company’s exact legal name matching PAN records
- Keep the bank account active with at least one transaction every 12 months
- If a rejection occurs, correct the bank details on the PMVBRY portal and re-submit — EPFO will attempt re-transfer in the next DBT cycle
9. Step-by-Step Registration Guide
The process differs slightly based on whether you are an existing EPFO employer or a new establishment:
For Existing EPFO-Registered Employers
- Visit pmvbry.epfindia.gov.in One-time
Log in using your existing EPFO Unified Portal credentials (PF establishment code + password). You do not need a new account — existing EPFO login is used.
- Submit PAN, GSTIN & Bank Account Details Critical
Enter your Company PAN, valid GSTIN, and the PAN-linked bank account details where incentives should be credited. These three are mandatory. Incorrect or mismatched details will cause DBT failures.
- Verify Auto-Calculated Baseline
The system pulls your ECR history (Aug 2024–Jul 2025) and displays your calculated baseline. Verify this number. If ECRs for this period are pending, file them before 31 January 2026 to ensure accurate baseline calculation.
- Ensure FAT Authentication for ALL New Employees Critical
For every new hire since August 2025 — both first-timers and re-hired employees — ensure their UAN is FAT-authenticated via the UMANG app. Non-FAT employees are ineligible and will not count in any incentive calculation, including threshold checks.
- File Monthly ECR — No Gaps Allowed
File your ECR on time every month. Each gap breaks the 6-month continuity chain. A missed ECR month means that month is not a “Completed Wage Month” and resets the continuity clock for affected employees.
- Track Incentive Status on PMVBRY Dashboard
Log into the PMVBRY portal after every 6 months to check credit status. If a DBT payment fails, the portal will show the rejection reason — refer to the PFMS document for the corresponding remedy.
For New Establishments (Registered after 1 August 2025)
- Register with EPFO via the Shram Suvidha Portal (or MCA SPICe+ for companies)
- On receiving your PF code, visit the PMVBRY portal and complete registration with PAN, GSTIN, and bank account
- Your baseline is pre-set to 20. Start filing ECRs and begin hiring above 20 to qualify
- Ensure FAT authentication for every hire from Day 1
For Exempted Establishments (Own PF Trusts)
Exempted establishments are eligible but must file ECRs with employee details directly on the EPFO portal. Contact your regional EPFO office for the specific format required for tagging PMVBRY-eligible employees in your filings.
10. Employer Action Checklist
Immediate Actions (Register Today)
- Register on the PMVBRY portal at pmvbry.epfindia.gov.in using EPFO credentials
- Submit Company PAN, GSTIN, and PAN-linked bank account details on the portal
- File all pending ECRs for August 2024 – July 2025 before 31 January 2026
- Note and verify your auto-calculated baseline from the portal
- Confirm your hiring already exceeds the threshold (2 or 5 additional, depending on baseline)
For Every New Hire (Ongoing)
- Confirm the employee’s gross wages are ₹1,00,000/month or below at joining
- Confirm the employee is between 18 and 54 years of age
- Ensure UAN is generated/authenticated via FAT on the UMANG app before first ECR
- For re-hires: ensure existing UAN is FAT-authenticated (not just Aadhaar-seeded)
- Include the employee in the monthly ECR from the first month of joining
Monthly Compliance
- File ECR on or before due date every month — zero gaps
- Monitor total employee count in ECR — must stay ≥ Baseline + Threshold (Criteria 1)
- Track the rolling 6-month average — must stay ≥ Baseline + Threshold (Criteria 2)
- Check PMVBRY portal dashboard after each 6-month cycle for credit confirmation
- On any DBT rejection, correct bank details on portal immediately and check PFMS remedy guide
11. Key Dates & Deadlines
| Event | Date / Deadline | Notes |
|---|---|---|
| Scheme effective from | 1 August 2025 | Jobs created from this date count |
| ⚠ Baseline ECR filing deadline | 31 January 2026 | File Aug 2024–Jul 2025 ECRs or lose accurate baseline |
| Registration window closes | 31 July 2027 | Portal stays open for 2 years |
| First incentive credit (earliest) | Feb 2026 (for Aug 2025 hires) | After 6 completed wage months |
| Non-manufacturing incentive period | 2 years per eligible employee | 4 instalments of 6 months each |
| Manufacturing incentive period | 4 years per eligible employee | 8 instalments of 6 months each |
12. Frequently Asked Questions
About the Scheme
What is PMVBRY and is it different from the ELI Scheme?
PMVBRY (Pradhan Mantri Viksit Bharat Rozgar Yojana) is the official name of the scheme that was announced as the “Employment Linked Incentive (ELI) Scheme” in Union Budget 2024–25. Same scheme, renamed. The portal went live in August 2025 under the PMVBRY name.
Is PMVBRY different from ABRY (Aatmanirbhar Bharat Rozgar Yojana)?
Yes, completely separate. ABRY was a COVID-19 recovery scheme operational from October 2020 with a registration deadline of 31 March 2022. PMVBRY is a fresh scheme for 2025–27 with a different benefit structure, much larger outlay (₹99,446 crore vs ABRY’s ₹22,810 crore), and a broader focus on sustained employment generation.
Is PMVBRY applicable only to manufacturing or all sectors?
All sectors — IT, services, retail, logistics, hospitality, construction, healthcare, manufacturing — are covered. The difference is the incentive duration: manufacturing sector employers receive incentives for 4 years; all other sectors receive them for 2 years.
About Eligibility & FAT Authentication
Is FAT authentication mandatory for re-hired employees with existing UANs?
Yes. FAT authentication is mandatory for all new employees, regardless of whether they are first-time EPFO members or re-joiners with existing UANs. The rule is unambiguous: without FAT-authenticated UAN, the employee is not an “Eligible Employee” under PMVBRY scheme definitions. Re-hired employees who already have a UAN must complete FAT on the UMANG app to re-authenticate their existing UAN before their first ECR in your establishment.
What exactly is FAT and how does an employee complete it?
FAT (Face Authentication Technology) is the UAN activation/authentication process using the employee’s live face to verify their Aadhaar identity, performed through the UMANG mobile app.
Steps for the employee:
- Download the UMANG app (Android/iOS)
- Navigate to EPFO → For Employee → Member UAN Activation
- Enter UAN, Aadhaar number, and registered mobile number
- Complete face scan when prompted — this links the UAN to Aadhaar biometrically
For first-time employees who don’t have a UAN yet, the UAN is generated in this same FAT process.
Can an employee with monthly wages of ₹95,000 be counted under PMVBRY?
Yes. The salary cap is joining gross wages ≤ ₹1,00,000/month. An employee joining at ₹95,000 is eligible. If the salary subsequently increases past ₹1,00,000 during the scheme period, that employee ceases to count for future incentive instalments from the month the salary crosses the cap. Prior credited instalments are not reversed.
Are fixed-term contract employees eligible?
Yes, if they are on your payroll, their EPF contributions are filed through your ECR, their UAN is FAT-authenticated, and they meet all other conditions. The key practical consideration is the 6-month continuity requirement — ensure contract durations are structured to allow 6 completed wage months for the incentive instalment to release.
My company has multiple PF codes for different locations. How is eligibility assessed?
Each PF establishment code is treated independently. Baseline, threshold, and criteria checks are applied separately to each code. You must register each establishment code on the PMVBRY portal individually with its own PAN, GSTIN, and bank account details.
About Baseline & Criteria
What happens if I did not file ECRs for some months between August 2024 and July 2025?
Your baseline will be calculated only from the ECRs that were filed. Missing months reduce your average, which artificially lowers the baseline — that may seem advantageous, but it also means your actual employee count for those months is not on record. EPFO may flag the inconsistency during incentive processing. File all pending ECRs for this period before 31 January 2026 to ensure an accurate and defensible baseline. Late ECR filing also attracts penalties under the EPF Act, so regularise immediately.
What exactly does “Criteria 1: ECR count ≥ Baseline + Threshold” mean in practice?
In each individual month, the total number of employees reported in your ECR must be at least equal to your baseline plus the threshold number. Example:
- Baseline: 100 employees
- Threshold: 5 (since baseline ≥ 50)
- Criteria 1 requires ECR count ≥ 105 in that specific month
If in any month your ECR reports only 103 employees, Criteria 1 fails for that month.
What does “Criteria 2: Average employment ≥ Baseline + Threshold” mean?
Across the 6-month incentive calculation period, the average employee count (sum of monthly ECR counts ÷ 6) must be at or above baseline + threshold. Example:
- Baseline: 100 employees, Threshold: 5, so the target is 105
- Monthly counts: 108, 110, 109, 103, 100, 106 → Average = 106
- Criteria 2: 106 ≥ 105 → ✅ Passed
But if two months dip to 98: 108, 110, 98, 98, 110, 112 → Average = 106 technically, but individual months below may fail Criteria 1. Both checks run independently and both must pass.
About Payments & DBT
When will I receive the first incentive payment if I register today?
Your first payment will arrive after your eligible employees complete 6 continuous completed wage months from the month of your portal registration. If you register in June 2026 and have eligible hires from that month, the first incentive would process after December 2026. For hires already made since August 2025 but not yet registered — register immediately, as the incentive clock starts from registration, not from the employee’s joining date.
My DBT payment was rejected. What do I do?
Step 1: Check the rejection code on the PMVBRY portal under your payment history.
Step 2: Refer to the official PFMS Validation & Payment Rejection Remedies PDF — it lists every rejection code and the exact corrective action required.
Step 3: Correct the issue (typically update bank account details on the PMVBRY portal).
Step 4: EPFO will re-attempt the transfer in the next DBT cycle. The amount is not forfeited — it will be credited once the bank validation passes.
Is there a cap on the number of employees for which an employer can claim incentives?
No upper cap has been specified. You can claim for all eligible additional employees above your baseline, provided both Criteria 1 and Criteria 2 are satisfied for the period. The scheme is designed to reward scale — the more eligible workers you hire and sustain, the higher your total incentive.
Are PMVBRY incentives received by employers subject to income tax?
PMVBRY incentives are government subsidy receipts. The applicable income tax treatment depends on your entity type and how the subsidy is accounted for. We strongly recommend consulting your CA or tax advisor to determine the correct treatment under Sections 2(24)(xviii) or 28(iiia)/(iv) of the Income Tax Act depending on the nature of your business and how the subsidy relates to capital versus revenue expenditure.
Common Misconceptions
“We are a small business with 15 employees — PMVBRY is not for us.”
Incorrect. If your baseline is under 50, you only need to hire 2 additional employees above it to qualify. If you have 15 employees and hire 2 more, you can claim ₹2,000/month per eligible hire (assuming wages between ₹10,001–₹20,000) — that is ₹48,000 per employee over 2 years. For a small business, that is meaningful savings on payroll cost.
“Our sector is IT/services, so we don’t get the manufacturing benefit — it’s not worth registering.”
The 2-year incentive is available to ALL sectors. Manufacturing gets an additional 2 years on top. For an IT company hiring 20 engineers at ₹25,000/month, the Part B incentive is ₹3,000/month × 20 × 24 months = ₹14.4 lakh over 2 years. That is free government money for hires you were going to make anyway.
“We already pay EPF contributions regularly — we are automatically getting PMVBRY benefits.”
No. Regular EPF contribution does not automatically trigger PMVBRY incentives. You must complete the one-time portal registration (PAN + GSTIN + bank account update on pmvbry.epfindia.gov.in), ensure all new hires are FAT-authenticated, and meet both criteria. Without completing portal registration, zero incentives are disbursed regardless of how compliant your ECR filings are.
Hired New Employees Since August 2025?
Every Month You Wait Is Money You Lose.
PMVBRY registration is free, fully digital, and takes under 30 minutes for existing EPFO employers. Our team handles registration, baseline verification, FAT compliance checks, and claim tracking end-to-end.
Disclaimer: This article is based on official PMVBRY scheme guidelines published by EPFO and the Ministry of Labour and Employment as of June 2026. Scheme details, portal functionality, and operational guidelines are subject to updates. Always refer to the official PMVBRY portal (pmvbry.epfindia.gov.in) and the Ministry of Labour & Employment for the latest information before making compliance decisions. ComplianceAge Solutions is not responsible for decisions made solely on the basis of this article.