What is the maximum incentive under PMVBRY Part A?

The maximum incentive is ₹15,000, equivalent to one completed month's EPF wage, paid in two equal instalments of up to ₹7,500 each. The first instalment is paid after 6 continuous months of EPF contributions. The second instalment is paid after 12 completed months (within 18 months of joining) and requires completing the mandatory Financial Literacy Course.

Is FAT authentication mandatory for Part A?

Yes. The employee must have an Aadhaar-authenticated UAN generated through Face Authentication Technology (FAT) on the UMANG app. Without FAT-authenticated UAN, the employee is not eligible for Part A incentives.

What is the Financial Literacy Course and is it compulsory?

Yes, it is compulsory for the second instalment. The Financial Literacy Course is facilitated by EPFO under the Ministry of Labour & Employment and covers personal finance basics, EPF/ESI benefits, savings, and investment. Completion of this course is a mandatory prerequisite.

How is the Part A incentive paid?

Payment is made via Direct Benefit Transfer (DBT) through the Aadhaar Bridge Payment System (ABPS) directly to the employee's Aadhaar-seeded bank account. Disbursement happens within 45 days of the ECR being filed with contributions. The second instalment is deposited into a savings/deposit account.

What happens if my bank account is not Aadhaar-seeded?

If the bank account is pending Aadhaar-seeding, the payment is suspended but the incentive continues to accrue. Once the bank account is Aadhaar-seeded, the full accumulated amount including arrears is released as per scheme guidelines.

If I change jobs after 4 months, do I still get the incentive?

No. Both instalments require 6 continuous months of ECR filings with the same employer for the first instalment. If you leave before completing 6 months, the first instalment does not release.

PMVBRY Part A: ₹15,000 Incentive for First-Time Employees

Q: Who qualifies as a 'First Timer' under PMVBRY Part A?

A First Timer is an employee who: (1) joins an EPFO-registered establishment between 1 August 2025 and 31 July 2027, (2) was not a contributing EPF member before 1 August 2025, and (3) whose EPF contribution is received for the first time for the wage month of August 2025 or later. Re-joiners with prior EPF history are NOT First Timers under Part A.

Q: Is there an extra benefit for low-wage workers under PMVBRY Part A?

Yes. First Timers whose monthly EPF wage is ₹10,000 or less receive an additional incentive of 10% of their EPF wage per month, over and above the standard ₹15,000 benefit.

Q: Are Part A incentives taxable?

Yes. Incentives received under PMVBRY Part A are subject to tax under the Income Tax Act, 1961. The tax treatment of the second instalment may vary depending on the nature of the instrument.

Q: Are seasonal industry workers eligible for PMVBRY Part A?

Yes. First Timers in seasonal industries have a relaxed continuity requirement — ECRs need to be filed for 6 months during any 12-month period (not necessarily consecutive). The employee must remain with the same establishment throughout that period.

Are you entering formal employment for the first time? You can claim up to ₹15,000 under the government's flagship PMVBRY Part A initiative.

1. What Is PMVBRY? Part A vs Part B

PMVBRY — Pradhan Mantri Viksit Bharat Rozgar Yojana, also known as the Employment Linked Incentive (ELI) Scheme — is a flagship Government of India initiative announced in the Union Budget 2024–25. Approved by the Union Cabinet on 1 July 2025 with an outlay of ₹99,446 crore, the scheme targets the creation of over 3.5 crore new jobs between 1 August 2025 and 31 July 2027.

The scheme has two distinct parts:

Part A: Direct DBT incentive of up to ₹15,000 to first-time formal sector employees.
Part B: Employer incentive of ₹1,000–₹3,000 per month for hiring eligible workers.

This article covers Part A exclusively.

2. Who Qualifies as a “First Timer”?

Under PMVBRY Part A, a “First Timer” is defined as an employee who satisfies all three of the following conditions simultaneously:

Date of joining an establishment is between 1 August 2025 and 31 July 2027 (both dates inclusive).
Was not a contributing member of Employees’ Provident Fund — either with EPFO or any Exempted Trust — prior to 1 August 2025.
Their EPF contribution is received for the first time for the wage month of August 2025 or thereafter.

In plain terms: if you have never held a formal EPFO-covered job before 1 August 2025, you are a First Timer. If you held one previously — even briefly — you are a re-joiner, not a First Timer.

3. Detailed Eligibility Conditions

3a. For the Employee

Must qualify as a First Timer.
Must join an establishment registered with EPFO.
Gross wages at the time of joining must be less than ₹1,00,000 per month.
Must have an Aadhaar-authenticated UAN generated through Face Authentication Technology (FAT) on the UMANG App.
The employee’s bank account must be Aadhaar-seeded to receive DBT payments.
Must complete a Financial Literacy Course (mandatory for the second instalment).
Must remain with the same employer for at least 6 continuous months for the first instalment.

3b. For the Establishment

Must file ECR (Electronic Challan-cum-Return) with contributions for 6 continuous months.
For exempted establishments: must provide employee details including First Timers.

3c. Seasonal Industry Special Provision

First Timers employed in seasonal industries benefit from relaxed continuity requirements: ECRs need to be filed for 6 months during any 12-month period (not necessarily consecutive).

4. Incentive Amount: Two-Instalment Structure

The Part A incentive equals one completed month’s EPF wage, subject to a maximum of ₹15,000. It is paid in two instalments:

1st Instalment (Up to ₹7,500): After 6 continuous months of EPF contributions. Paid via DBT to your Aadhaar-seeded bank account within 45 days.
2nd Instalment (Up to ₹7,500): After 12 completed months (within 18 months of joining). Mandatory prerequisite: completion of the Financial Literacy Course.

5. Low-Wage Worker Bonus (≤ ₹10,000/month)

First Timers whose monthly EPF wage is ₹10,000 or less receive an additional incentive of 10% of their EPF wage per month, over and above the standard ₹15,000 benefit. This provision specifically supports the most economically vulnerable new entrants to the formal workforce.

6. The Financial Literacy Course — Mandatory Milestone

To unlock the second instalment, you must complete the Financial Literacy Course facilitated by EPFO under the Ministry of Labour & Employment.

If you have recently completed your first 6 months, you may have received this exact SMS from EPFO:

“madam/sir,to become eligible to receive the 2nd installment of pmvbry incentive, you are required to compete the financial literacy course on your epfo unified portal login. you are requested to complete the same at the earliest. regards, epfo”

How to complete it: Do not ignore this message! To fulfill this requirement, you need to log in to the EPFO Unified Member Portal using your UAN and password. There will be a dedicated link to complete the Financial Literacy Course module. The course covers:

Personal finance basics
EPF and ESI benefits
Savings and investment habits

7. Payment Process & DBT Timeline

Payment is made via Direct Benefit Transfer (DBT) through the Aadhaar Bridge Payment System (ABPS).

First Instalment: Directly credited to your Aadhaar-seeded bank account within 45 days of the 6th month’s ECR filing.
Second Instalment: Deposited into a designated savings/deposit account for a lock-in period specified by the Ministry.

Ensure your bank account is Aadhaar-seeded! If pending, the payment is suspended until linked.

8. Step-by-Step: UAN Registration via FAT

To claim PMVBRY Part A, you must generate a FAT-authenticated UAN:

Download the UMANG App: Get the app from the Google Play Store or Apple App Store.
Generate UAN via Face Authentication (FAT): Navigate to EPFO → For Employee → Member UAN Activation. Enter your Aadhaar number and complete the live face scan.
Link Your Bank Account with Aadhaar: Ensure your bank account is seeded with Aadhaar.
Share UAN with Your Employer: Provide your FAT-authenticated UAN to your employer so they can file your ECRs.
Complete 6 Months of Continuous Service: Remain with the same employer.
Complete the Financial Literacy Course: Required for the second instalment.
Receive Second Instalment After 12 Months: The final amount is credited after 12 completed months of service.

9. Tax Implications

Incentives received under PMVBRY Part A are subject to tax under the Income Tax Act, 1961. The tax treatment of the second instalment (placed in a savings instrument) may vary depending on the nature of the instrument.