IT and ITeS Policy of Uttar Pradesh 2022 Grant on EPF for Employment Generation

The Uttar Pradesh IT & ITeS Policy 2022 is implemented by the Government of Uttar Pradesh, via its nodal agency Uttar Pradesh Electronics Corporation Limited (UP ELC) and the InvestUP platform.The purpose of the policy is to build a strong IT and ITeS ecosystem in the state by attracting investment, creating employment (especially for youth and skilled labour), encouraging innovation and exports, and promoting balanced regional development. Under this policy, your business (as an MSME/start-up in IT/ITeS) can benefit from incentives such as reimbursements on EPF contributions, stamp duty exemptions, land subsidies, recruitment assistance, and more. The specific incentive of Grant on EPF for Employment Generation is designed to reduce your employee-cost burden when you hire eligible persons and thereby boost formal employment.

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

Key Features

100% reimbursement of EPF contributions for eligible employees up to a cap of ₹1 crore per annum per unit, for up to 5 years.
The reimbursement applies only to women, SC/ST, transgender or Divyangjan employees (with UP domicile) who are employed continuously for at least 1 year after commencement of commercial operations.
The unit must pay EPF for the employee, and the employee should be domiciled in Uttar Pradesh.
The incentive is aligned with the start of commercial operations of the unit; only after operations begin can the unit claim the benefit.
This is part of a broader suite of incentives under the policy which also include: recruitment assistance (₹20,000 per employee), stamp duty exemption, interest subsidy, land cost reimbursement, certifications reimbursement, etc.

Financial Assistance

Component	Assistance Provided	Explanation & Example
Grant on EPF for Employment Generation	100% reimbursement of EPF contributions paid for eligible employees (women or SC or ST or Transgender or Divyangjan) up to ₹1 crore per annum per unit, for 5 years.	Example: If your unit employs 50 eligible employees who each have EPF contributions of ₹1,500/month, total annual EPF = 50 × ₹1,500 × 12 = ₹9 lakh. This amount can be reimbursed (since it’s below the ₹1 crore cap).
Additional assistance (related)	Recruitment assistance ₹20,000 per eligible employee; reimbursed for up to 5 years.	Example: If you hire 100 UP-domicile fresh graduates in IT/ITeS and keep them continuously for 1 year, you may get 100 × ₹20,000 = ₹20 lakh recruitment assistance.

Eligibility Criteria

Who Can Apply:

New or expansion units in the IT/ITeS sector set up in Uttar Pradesh under the policy’s definition.
Units that commence commercial operations and employ Uttar Pradesh domicile professionals. For the EPF grant specifically: employees must be women/SC/ST/transgender/Divyangjan and must have been in continuous employment for at least one year.

Who Cannot Apply:

Units not registered/approved under the policy or not commencing operations within stipulated timeframe.
Units failing to employ the required categories or not meeting the domicile/continuous employment conditions for EPF reimbursement.
Entities outside the IT/ITeS scope or outside Uttar Pradesh.

Documents Required

Udyam / Company registration certificate and GST/PAN details.
Project plan or business plan detailing investment, operations, location.
Proof of domicile of employees (women/SC/ST/transgender/Divyangjan) as per policy scope.
Employment roster showing continuous one-year service for eligible category employees.
EPF contribution records for eligible employees.
Certificate of commercial operations commencement.

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

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.

Recommended for: Lean teams. Designed to save you time and effort. Access expert help from start to finish.

Option 2: Government Portal Route

Register your company and project details via the state nodal agency portal (e.g., Invest UP/UPLC) for the IT/ITeS Policy 2022.
Submit the application for benefits including EPF reimbursement through the online form for fiscal incentives.
After commencement of commercial operations and compliance verification (employee roster, domicile proof, EPF contributions, etc.), claim the reimbursement.
Monitor status and receive disbursement upon verification.

Option 3: Offline Submission

Collect application form from the implementing agency (UP Electronics Corporation/Department of IT & Electronics).
Submit physical documents (company registration, employee list, EPF contribution proof) at the specified office.
Post verification and commencement, reimbursement is released subject to conditions.

Power Combos with The Scheme