Employment Subsidy Scheme 2017

The Employment Subsidy Scheme, 2017 is implemented by the Directorate of Industries, Trade and Commerce, Government of Goa under the Goa State Incentives to Encourage Investments (Umbrella Scheme), 2017. The scheme was notified in the Official Gazette on 26th July 2018 and came into force from 1st October 2017. It remained valid for units going into production up to 30th September 2022, subject to filing claims within the validity period.

The main purpose of this scheme is to encourage industries to generate employment for Goan residents by offering wage-based subsidies. As an MSME or Startup in Goa, your business can benefit by receiving reimbursement on salaries paid to eligible Goan employees, thereby reducing operational costs and promoting local employment.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Eligibility of Industry Categories: The scheme covers Micro, Small, Medium and Large manufacturing units classified under White, Green and Orange categories.
Employment-Linked Incentive: The subsidy is directly linked to the percentage of Goan employees in your workforce. A minimum of 60% Goan manpower on regular employment is mandatory to qualify.
Progressive Benefit Structure: Subsidy increases in proportion to Goan employment between 60% and 100%. Enterprises employing below 60% Goan manpower are not eligible.
Duration of Subsidy: The subsidy can be claimed for a maximum period of seven years, subject to general conditions of the Umbrella Scheme.
Salary Threshold: Only Goan employees earning gross salary above ₹8,000 per month are considered eligible for calculation of subsidy.
Annual Claim Filing: Claims must be filed yearly as per the timeline mentioned in the Umbrella Scheme guidelines.
Budget-Based Disbursement: Benefits are subject to availability of funds and no promissory estoppel applies if budget allocation is exceeded.

Financial Assistance

Component	Assistance Provided	Detailed Explanation (with Example)
Subsidy on Salary Paid to Goan Employees	Reimbursement based on % of Goan manpower employed	If your MSME employs 80% Goan manpower and pays ₹50 lakh annual eligible wages, subsidy will be calculated proportionately (between 60–100%) subject to caps.
Maximum Reimbursement – MSME	Up to ₹7,000 per employee per month	If you pay ₹12,000 per month to a Goan employee, reimbursement is capped at ₹7,000 per employee per month.
Maximum Reimbursement – Large Units	Up to ₹5,000 per employee per month	For large enterprises, even if salary is ₹15,000, reimbursement is limited to ₹5,000 per employee per month.
Annual Cap	₹25 lakh per annum	Total subsidy payable to an enterprise cannot exceed ₹25 lakh per year.
Subsidy Period	Maximum 7 years	Subsidy is calculated annually from date of production

Subsidy Slab (as per % of Goan Employees):

Below 60% – No benefit
60% – 60% benefit
60% to <80% – Proportionate increase
80% and above – 100% benefit

Eligibility Criteria

Eligible Units:

Micro, Small, Medium and Large manufacturing industries
Units listed under White, Green and Orange categories
Minimum 60% Goan manpower on regular employment
Goan employees must earn gross salary above ₹8,000 per month
Unit must be registered under the Umbrella Scheme

Eligible Employees:

Goan resident (as defined: born in Goa or holding 10-year residence certificate issued prior to 10 years)
Up to 60 years of age

Not Eligible:

Units availing Chief Minister’s Rojgar Yojana (CMRY) or similar employment schemes
Units claiming similar benefit under any other Goa Government scheme
Enterprises availing Department of Information Technology incentives
Delayed claims beyond allowed timeline for final year

Documents Required

Registration under Umbrella Scheme
Self-declaration affidavit
Payroll copy certified by Chartered Accountant
Statement of Goan employees
CA certificate of salary paid
Audited balance sheet
GST returns
Certificate confirming no benefit under other schemes
ESIC/PF returns (if applicable)

Application Process for the Scheme

Option 1: Apply with Bullit, Recommended

Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.

Option 2: Apply through Offline Submission

Obtain a prescribed application form from the Directorate of Industries.
Fill employee details, claim period, and subsidy amount.
Attach required CA certificates and payroll records.
Submit to the Directorate of Industries, Trade & Commerce (DITC).
Receive acknowledgement receipt.
Application is scrutinised by the Task Force Committee.
Approval and disbursement subject to verification and budget availability.

Frequently asked questions

What is the minimum Goan employment required?

A minimum of 60% Goan manpower on regular employment is mandatory to become eligible for subsidy under the scheme.

Is the scheme applicable to service industries?

No, the scheme is primarily applicable to manufacturing industries listed under eligible categories.

What salary level is considered eligible?

Only Goan employees earning more than ₹8,000 gross per month are considered for subsidy calculation.

What is the maximum subsidy period?

Subsidy can be claimed for a maximum period of seven years from the date of commencement of production.

Is there an annual cap?

Yes, the total subsidy payable to an enterprise is capped at ₹25 lakh per annum.

Can large enterprises apply?

Yes, large enterprises are eligible; however, the per-employee reimbursement cap is lower compared to MSMEs.