Payroll Subsidy | India Gov Schemes

Key facts

Benefit	₹24,000 yearly
Who	Entrepreneurs in Tamil Nadu
How paid	Reimbursement for EPF contributions
Implemented by	Micro Small and Medium Enterprises Department, Tamil Nadu
Official portal	msme.tn.gov.in
Application window	Open all year for eligible MSMEs in Tamil Nadu.

Benefits

Beneficiaries receive a reimbursement of up to ₹24,000 per employee per year for EPF contributions for the first three years of commercial production.

Who can apply

For: entrepreneur
Resident of Tamil Nadu
owns cultivable land
not income tax payer
no government employee in family
poor household

This scheme is available to entrepreneurs operating micro, small, and medium enterprises in Tamil Nadu. Key exclusions include those with family members employed in government, income tax payers, and enterprises engaged in specific manufacturing activities such as sugar and cement.

Who is not eligible

Income tax payers
Government employees in family
Service MSMEs
Manufacturing enterprises listed by the government

How to apply

Applications can be submitted online through the official portal of the Micro, Small, and Medium Enterprises Department of Tamil Nadu.

Visit the official website of the Micro, Small, and Medium Enterprises Department of Tamil Nadu.
Click on 'Login / Registration' and fill in the required details to register.
Log in using the credentials sent to your registered email and mobile number.
Select the Payroll Subsidy scheme under 'Schemes' and click on 'Apply Online'.
Complete the application form and review the information provided before proceeding.
Upload the necessary documents in the specified format and size.
Submit the application and note the reference number for tracking.

Apply on the official website ↗

Documents required

Copy of UDYAM Registration Certificate
Attested Copy of TANGEDCO Meter Card
Copy of the Land Purchase Deed or Lease Agreement Deed
Copy of Machinery Invoice
Copy of First Sale Invoice
Copy of Returns filed under the Employees Provident Fund 1952
Copy of NOC [No Objection Certificate]
Copy of Tax Receipt

Common problems and how to fix them

Problem	What to do
Application not processed	Ensure all mandatory documents are uploaded correctly and the application is submitted within the specified time limit.
Claim amount lower than expected	Verify that the employee count meets the minimum requirement of 20 regular workers for the claim period.

Frequently asked questions

What is the maximum subsidy amount per employee?

The maximum subsidy amount is ₹24,000 per employee per year for EPF contributions.

Are service MSMEs eligible for this scheme?

No, service MSMEs are not eligible for the Payroll Subsidy scheme.

What documents are required for the application?

Required documents include the UDYAM Registration Certificate, TANGEDCO Meter Card, land deed or lease agreement, machinery invoice, and EPF returns, among others.

When should an application for the previous year's claim be filed?

Applications must be submitted within three months after the end of the financial year for the previous year's claim.

Can additional exclusions be added to the scheme?

Yes, the government may notify additional enterprises or activities that are excluded from the scheme.

Always confirm the latest details on the official portal before applying.