Employment Subsidy Scheme, 2017

DBT (direct benefit transfer): No

Categories: Business & Entrepreneurship, Skills & Employment

Sub-categories: Setting up / start-up / entrepreneurship, Employee management, Employment services and jobs, Entrepreneurship development

Target beneficiaries: Business Entity

Tags: Industry, Tourism, Enterprise, Employee, Subsidy, Employment, Investment

• - Reimbursement shall be restricted to ₹7,000/- per Goan employee per month
• The total subsidy for Micro, Small, Medium enterprises and eco-tourism projects shall not exceed ₹25,00,000/- per annum, on a pro rata basis depending on the date of production
• The total subsidy for Large enterprises shall not exceed ₹50,00,000/- per annum, on a pro rata basis depending on the date of production
• Subsidy is calculated based on the ratio of percentage of Goan employment, which provides a proportional increase from 60% benefit for 60% Goan employees, up to 100% benefit for 80% and above Goan employees. Benefit Disbursal
• For Micro, Small, Medium enterprises and eco-tourism projects, the total wages paid to Goan employees shall be restricted to 50% before applying the reimbursement ratio
• For Large enterprises, the total wages paid to Goan employees shall be restricted to 25% before applying the reimbursement ratio
• The benefits under this scheme are subject to budgetary allocation
• The period of grant of subsidy shall not exceed seven years. Conditions
• The enterprise must allow and/or grant free access to any official authorized by the Directorate of Industries, Trade and Commerce for conducting inspection/supervision of the unit or the registers or holding discussions with the employed employees for ensuring proper utilisation of the financial incentives/subsidies granted by the State Government
• The enterprise must submit all necessary reports, information, and documents specified under the scheme or as required or directed by the Directorate of Industries, Trade and Commerce (DITC) from time to time or as and when required

What is the maximum duration for which an enterprise may continue to receive the subsidy benefits once they have been deemed eligible under the terms of this policy?

The maximum period for which the grant of subsidy shall be permitted to all eligible enterprises is restricted to seven years, subject to the general conditions outlined in the Umbrella Scheme. <br>

If my business unit has already received funding or assistance from the Chief Minister's Rojgar Yojana Scheme, can I still receive financial aid under this policy?

No, units that have availed of the Chief Minister’s Rojgar Yojana Scheme or any other employment generation scheme provided by the Government of India or the Government of Goa are not eligible for benefits under this scheme. <br>

What specific types of manufacturing units are qualified to apply for incentives, especially regarding their environmental risk classification?

Micro, Small, Medium, and Large manufacturing industries are eligible, provided they are officially listed under the white category, Green category, or Orange category. <br>

Since the program provides financial reimbursement, is the ultimate payment of the funds guaranteed upon meeting all eligibility and compliance requirements?

No, all benefits provided under this scheme are explicitly stated to be subject to the availability of budgetary allocation. No Promissory Estoppel shall be applicable if benefits are discontinued because the allocation is exceeded. <br>

If I have Goan employees earning below the minimum salary threshold, do they count towards meeting the mandatory percentage of local manpower required?

Yes, those Goan employees paid a gross salary of less than ₹8,000/- per month are eligible for counting towards the percentage of Goan manpower, but they are excluded from the actual subsidy calculation. <br>

Is there a specific deadline by which my company must initiate the application process if we wish to avail of benefits that extend beyond the scheme's formal validity date?

Yes, to be eligible for benefit disbursement beyond the scheme&#39;s validity (September 30, 2022), the applicant must submit an application for at least one claim to the Directorate of Industries, Trade and Commerce during the scheme’s validity period. <br>

How is an employee defined as a "Goan" for the strict purpose of calculating the percentage of local manpower required for eligibility?

A &quot;Goan&quot; is defined as a person born in Goa, or a person having a ten years Residence Certificate issued by the Mamlatdar, or a person possessing other suitable documentation proving residence in Goa issued prior to ten years, such as a Driving license, Ration card, Election Photo Identity Card (EPIC), or Passport. <br>

Is there any maximum age limit specified for Goan employees whose salaries are included when determining the amount of the employment subsidy?

Yes, for Goan employees to be considered eligible for inclusion in the subsidy calculation, they must be up to sixty years of age. <br>

If my company claims financial support for employment benefits under this program, am I barred from claiming assistance for similar expenses elsewhere?

Yes, this scheme specifically states that it shall not be applicable to cases where a similar benefit has already been claimed under any other scheme or program operated by the Government of Goa. <br>

Are projects specifically related to tourism also allowed to apply, and if so, what special criteria must these projects meet?

Yes, projects categorized as Hinterland Eco tourism in lesser developed talukas are eligible, provided they are registered with or recognized by the Department of Tourism, Goa-Investment Promotion Board, Town &amp; Country Planning, Planning and Development Authority, or Eco Sensitive Zone Authority. <br>

Will an enterprise be eligible for this employment subsidy if they are currently receiving or have previously received incentives from the Department of Information Technology?

No, enterprises that are currently taking or have previously taken any benefit under any policy offered by the Department of Information Technology, Government of Goa, shall not be eligible. <br>

For the purpose of meeting the required 60% Goan employment threshold, how must the employees be maintained on the enterprise’s records?

The employees counted for the percentage calculation must be employed on the enterprise’s payroll continuously throughout the duration of the claim year to be considered for both the benefit calculation and the percentage requirement. <br>

What is the minimum percentage of local manpower that must be engaged by the enterprise to qualify for receiving benefits under this program?

Enterprises must engage a minimum of 60% of Goan manpower on regular employment to be eligible for benefits under this scheme. <br>

Should I include family members or individuals related to me when calculating the total number of eligible employees for this employment program?

No, relations defined under section 56 of the Income Tax Act, 1961, cannot be counted as employees for the purpose of calculating eligibility or subsidy under this scheme. <br>

• https://www.myscheme.gov.in/schemes/ess-2017
• https://www.goa.gov.in/wp-content/uploads/2019/10/employment_new.pdf

• Guidelines & Application Form