Gujarat Textile Policy: Payroll Assistance

The Gujarat Textile Policy 2024 is a policy framed by the Government of Gujarat and launched in October 2024. It aims to promote investment, employment generation, modernisation and sustainability across textile value‐chains in Gujarat. One of its major incentives is Payroll Assistance offered to eligible textile units, to reduce labour cost burden, especially for female workforce. For you as an MSME in textile in Gujarat, this means a direct monthly subsidy per eligible worker, helping improve cost-competitiveness and encourage job creation.

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

Key Features

Monthly assistance per worker: Depending on activity and taluka category, the unit receives a subsidy of a fixed monthly amount per eligible worker for a specified number of years. This helps lower the effective labour cost, especially useful for labour-intensive textile units.
Higher rate for female workers: To promote gender inclusion, female employees attract a higher monthly subsidy compared to male employees. For example, one version says ₹5,000/month for female vs ₹4,000/month for male in high category.
Eligible activities: The policy covers key segments like garments, apparel & made-ups , technical textiles, weaving, knitting, processing etc. Thus a broad spectrum of textile ecosystem players can benefit.
Assistance duration: For many units, the assistance is available for up to five years, and in some categories up to ten years. Longer durations reward units that stay invested and provide employment.
Condition of Gujarat domicile & EPF registration: Many policy documents specify the worker must be domiciled in Gujarat and registered under EPF scheme, for the payroll assistance to be applicable. This ensures local employment and formal workforce.
SHG & job-work assistance: For Self-Help Groups and job-work units there is a related payroll assistance for example payroll assistance up to 25% of job work turnover limited to a monthly cap per member for 5 years.

Financial Assistance

Component	Assistance Provided	Detailed Explanation
Monthly payroll subsidy per female worker	Up to ₹ 5,000 per month under some activity or locations.	Example: If your garment unit hires a female worker who is eligible under “Activity-I” in a Category-1 taluka, you may get ₹5,000/month subsidy for that worker for the defined period .
Monthly payroll subsidy per male worker	Up to ₹ 4,000 per month for male workers.	Example: For a male worker in same conditions you might receive ₹4,000/month subsidy for that worker for the period.
Alternate slab for other category or activity	E.g., ₹ 3,000/month for female and ₹ 2,000/month for male for other activity or locations.	Example: In a taluka of Category-3 or for “Activity-II” you may be eligible for ₹3,000/month for female or ₹2,000/month for male for the period of e.g., 10 years.

Eligibility Criteria

Who Can Apply:

Units engaged in specified textile activities under the policy: garments/apparel & made‐ups, technical textiles, weaving/knitting/dyeing/processing are covered.
Workers must be domiciled in Gujarat and registered under the EPF scheme (i.e., the worker is PF‐registered).
For units to avail the assistance, they must comply with policy registration, commence commercial production or expansion within the policy timelines, and apply for incentives as per guidelines.

Who Cannot Apply:

Units not operating in the eligible textile sub‐sectors defined under the policy.
Workers not registered under EPF – such workers would not qualify for the payroll assistance component.
Units failing to fulfil the employment or registration obligations may lose eligibility.
Units which claim the same cost subsidy for the same workers from another state scheme where overlapping is not permitted.

Documents Required

Policy registration certificate or application acknowledgement under Gujarat Textile Policy 2024.
EPF registration records for the workers whose payroll assistance is claimed.
Worker list employed by the unit.
Payroll records/pay slips showing wages paid to each worker.
Evidence of unit’s commercial production commencement and compliance with policy registration.
Bank account details for reimbursement of assistance.
Any self-certification or undertaking as per the policy guidelines for payroll assistance.
Copy of the in‐principle/incentive approval letter from the State Government .

Application Process for the Scheme

Option 1: Apply with Bullit

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
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Option 2: Apply directly via Government Portal

Visit the official portal of the Industries & Mines Department, Government of Gujarat and navigate to the “Gujarat Textile Policy 2024” incentives section.
Register your textile unit under the policy, choose the appropriate activity , and check the Payroll Assistance component.
Once registration and approval are done, hire workers, ensure they are EPF‐registered and submit claims for monthly payroll assistance as per the schedule and guidelines.
Ensure compliance with employment numbers, maintain records of EPF registration, payroll payments, etc., and file reimbursement claims following the guidelines.

Option 3: Liaise with the State Nodal Agency / Investor Facilitation

Contact the Industries Commissionerate, Govt. of Gujarat for assistance or clarification on payroll assistance, unit registration, activity categories and claim process.
Use investor facilitation centres for help with registration under the policy, getting approvals, clarifying the policy timelines (especially the “Date of Commencement of Production – DoCP”) and claim submission deadlines.