SOP for calculating incentive under the Pradhan Mantri Viksit Bharat Rojgar Yojana (Employment Linked Incentive Scheme)

We are pleased to share our latest EY PAS Alert summarizing the Standard Operating Procedure (SOP) issued on 18 November 2025 for calculation of incentive under the Pradhan Mantri Viksit Bharat Rojgar Yojana – PMVBRY (Employment Linked Incentive Scheme).

The Government had announced the implementation of the PMVBRY with effect from 1 August 2025. The Scheme guidelines were issued on 15 August 2025 providing details of the incentives payable under two parts of the Scheme, i.e., Part A – Incentive to employees for first time employment and Part B – Incentive for employers for generation of additional employment. However, the detailed mechanism for calculation of incentive under Part B was not issued as part of the initial guidelines. 

The Government has now issued an SOP, covering the mechanism for calculation of incentive payable to employers under Part B of the Scheme. The SOP provides a four-step approach for calculation of incentive under Part B of the PMVBRY, along with a detailed process followed at each step: 

• Step 1: Check eligibility of establishment to receive incentive for the month
• Step 2: Identify eligible employees engaged in the month
• Step 3: Calculate net additional employment for the month
• Step 4: Calculate monthly incentive

The SOP also clarifies various other procedural aspects such as online registration, payment cycles/timelines, incentive period, provisions for exempted establishment etc. 

We recommend reviewing the attached alert and the SOP, to assess the impact on the estimated incentive and setup processes for regular monitoring of additional/replacement hires, employment tenure, eligible employees etc.

For further details, please contact:

Sonu Iyer
People Advisory Services
Partner & Leader - India Region
Email: Sonu.Iyer@in.ey.com

Puneet Gupta
People Advisory Services
Partner
Email: Puneet1.Gupta@in.ey.com