Hiring Before July 2027? Earn up to ₹3,000 a Month per New Hire

8 November 2026 · 4 min read · By Dd J Prrakash, HR Advisor & Mentor

If you plan to grow your team in the next few months, the government will pay part of the cost. Under the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), employers registered with EPFO get a monthly incentive for every additional person they hire. Here is how it works, who qualifies, and what to do before 31 July 2027.

1. What the scheme pays employers

Part B of the scheme pays employers a monthly incentive for each additional employee, based on that employee's EPF wage. It covers jobs created between 1 August 2025 and 31 July 2027.

2. Who qualifies

The incentive is paid for additional employees, so it rewards growth in headcount. You qualify if:

• Your establishment is registered with EPFO.
• You hire at least 2 additional employees (if you have fewer than 50) or 5 additional employees (if you have 50 or more).
• You keep those additional employees for at least six months.
• Each employee earns up to ₹1 lakh a month.

3. How long it runs, and the manufacturing advantage

Incentives are paid for two years. Manufacturing employers get them for a third and fourth year too, which makes the scheme especially useful for factory units planning to expand.

A worked example: a 30-person unit adds 4 people at an EPF wage of ₹18,000 each. That is ₹2,000 × 4 = ₹8,000 a month, or about ₹1.92 lakh over two years, provided all four stay employed and eligible. The money is paid into the employer's PAN-linked bank account.

4. What your new hires can get

Part A of the scheme rewards first-time employees registered with EPFO: one month's EPF wage, up to ₹15,000, paid in two instalments. The first comes after six months of service; the second after twelve months and a financial literacy programme.

Mention this in offer conversations with freshers. It gives them a reason to stay past six months, which is exactly what your own incentive depends on.

5. Where the scheme stands

By March 2026, ₹214 crore had been paid to 17,551 establishments for about 6.46 lakh additional workers. In June 2026, about ₹2,400 crore more was disbursed. The scheme is live and paying, so the opportunity is real.

6. Mistakes that can cost you the incentive

Most of the risk sits in your own records and processes, not in the scheme rules. Watch for these:

• Late EPF enrolment. A hire who is not on EPF from the joining date may not count as an additional employee for that month.
• Counting replacements as growth. If two people leave and two join, your headcount has not grown. Track net headcount month by month.
• Early exits. Each additional hire must stay at least six months. Weak onboarding is the most common reason new people leave early.
• Out-of-date bank details. The incentive goes to your PAN-linked account, so check those details before the first claim.
• No paper trail. Keep offer letters, joining dates and monthly EPF returns together, so you can answer any query quickly.

Your hiring action list

1. List the roles you plan to fill before 31 July 2027, with the expected monthly wage for each.
2. Check your size band: under 50 employees, plan for at least 2 additional hires; 50 or more, at least 5.
3. Enrol every new hire with EPFO from the joining date, and confirm your PAN-linked bank account details are current.
4. Plan the first 90 days for each hire, with 30-, 60- and 90-day check-ins, so they stay past six months.
5. Check the EPFO employer portal for the current steps to claim the incentive, and keep your headcount records month by month.

This article is general information, not legal advice. Labour laws, notifications and State rules change — check the current position and take professional advice before acting.