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Business & Entrepreneurship

"Employment Incentive" under "Motivation of Entrepreneurs to Start Industries and Fiscal Assistance to Industries"

A Wage/Employment subsidy of 20% of wage/ salary up to a maximum of ₹5,00,000/- per annum is provided in the case of workers who are covered under the Provident Fund (PF). The new units which commence production on or after 2-8-2004 would alone be eligible for this incentive for 5 years.

Authority

State/ UT

Region

Puducherry

Status

Verified 2026

Updated

March 2026

What you get

- Wage/Employment Subsidy of 20% wage/salary up to a maximum of ₹5,00,000/- per annum for the workers who are covered under the Provident Fund (PF) (if applicable). | - "Employment Incentives", granted only if the unit has provided at least 60% of the employment to the people of UT of Puducherry. | *Wage/Salary would be limited by the minimum wages prescribed by the Government from time to time.

Who can apply

The new units which commence production on or after 2-8-2004 would alone be eligible for this incentive for 5 years from the date of commencement of production.; The unit should provide direct employment to at least 10 persons.; The "employment incentive" will be granted if the unit has provided at least 60% of the employment to the people of UT of Puducherry.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

Which categories of workers are excluded from availing the Employment Incentive due to the absence of prescribed minimum wages?

Categories of workers for whom minimum wages are not prescribed by the government are excluded from availing the Employment Incentive.

What is the specific requirement regarding employment of residents of the Union Territory of Puducherry to be eligible for the Employment Incentive?

At least 60% of the employment provided by the unit must be to people of the Union Territory of Puducherry to be eligible for the Employment Incentive.

How many persons must a unit provide direct employment to qualify for the Employment Incentive?

A unit must provide direct employment to at least 10 persons to qualify for the Employment Incentive.

From which date onwards are new units eligible for the Employment Incentive, and for how long?

New units commencing production on or after 2-8-2004 are eligible for the Employment Incentive for a period of 5 years from the date of commencement of production.

Are there any restrictions on the type of employment covered under the Wage/Employment subsidy?

The subsidy is provided for wage/salary paid to workers covered under Provident Fund (PF), ensuring formal employment benefits.

How is the wage/salary subsidy amount calculated under the Employment Incentive scheme?

The wage/salary subsidy amount is calculated as 20% of the wage/salary, subject to a maximum of [?]5,00,000/- per annum.

Is the Employment Incentive conditional upon any specific requirement regarding the employment of local residents?

Yes, the Employment Incentive requires that at least 60% of the employment provided by the unit be to people of the Union Territory of Puducherry.

What is the maximum wage/salary subsidy provided under the Employment Incentive scheme?

The maximum wage/salary subsidy provided under the Employment Incentive scheme is [?]5,00,000/- per annum.

Where can applicants find the prescribed form for applying for the Employment Incentive?

Applicants can find the prescribed form for applying for the Employment Incentive on the Official Website of the Directorate of Industries and Commerce, Puducherry.

What is the duration for which new units are eligible for the Employment Incentive?

New units are eligible for the Employment Incentive for a period of 5 years from the date of commencement of production.

How can an entrepreneur escalate a grievance if not satisfied with the services rendered under the Rent Subsidy scheme?

If an entrepreneur is not satisfied with the services, they can escalate the grievance to the Director, Directorate of Industries and Commerce, Industrial Estate, Thattanchavady, Puducherry-605009. Contact details: +91-413-2248476, Email: ind.pon@nic.in.

Which Department of the UT of Pudcherry administers this scheme?

The scheme is administered by the Department of Industrial Development (Industries and Commerce), Union Territory of Puducherry, Union Territory of Puducherry.