Only 5.4% of startups aware of govt’s employment-boosting scheme despite Rs 3,000 monthly hiring incentive: TeamLease

The Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), a government scheme aimed at boosting employment generation, enhancing employability and formalising the workforce, has seen limited awareness among Indian startups and micro businesses, according to a report by staffing firm TeamLease.

Despite offering hiring incentives of up to Rs 3,000 per employee per month, awareness of the scheme among startups and micro enterprises stands at just 5.4%, the report said. In contrast, large organisations show significantly higher awareness levels at 83%, highlighting a sharp information gap among the employers that could potentially benefit the most from the initiative.

The survey, which captured responses from more than 1,200 employers across 23 industries, found that while familiarity with the scheme exists across parts of corporate India, alignment with actual hiring plans remains uneven. Although 56% of surveyed employers said they plan to expand their workforce in the second half of FY26, awareness among this growth-oriented group was limited to 60.4%.

Among employers who are aware of PM-VBRY, participation appears to be driven more by long-term workforce considerations than short-term financial incentives. Support for skill development emerged as the strongest motivator, cited by 51.8% of respondents, compared with just 18.6% who pointed to direct hiring subsidies. Job retention incentives were valued by 39.7% of employers, reflecting a focus on workforce stability and consistent performance.

Workforce formalisation was identified as a key factor by 29.9% of respondents, particularly among organisations seeking stronger compliance, structured employment practices and improved access to formal credit channels.

The report also highlighted significant variation in awareness across organisational roles and sectors. Compensation and benefits teams reported the highest awareness levels at 71.7%, followed by talent acquisition professionals at 68.4%. Awareness was lower among HR generalists at 44.4%. Sectorally, awareness was higher in FMCG (72.2%) and EV infrastructure (64.3%), while service-oriented segments such as educational services lagged at 33.3%.

Commenting on the findings, Balasubramanian A, Senior Vice President at TeamLease Services, said India’s workforce was at a critical juncture where progress depends on both awareness and action. “Our survey highlights that while many employers know of PM-VBRY, 19% remain entirely unaware, leading to uneven engagement across sectors. Addressing these gaps can unlock disproportionate value, enabling organisations to strengthen capability, improve retention, and build a resilient, future-ready workforce,” he said.