MySubsidy

Employment Linked Subsidy (EPF) Maharashtra

Directorate of Industries, Government of Maharashtra · Central government

Maharashtra reimburses 50% of employer EPF contributions for 5 years, up to ₹5 crore, to industrial units creating significant direct jobs.

Open, rolling. Applications are accepted continuously — there is no deadline.

Key facts

Subsidy amount
Up to ₹5,00,00,000
Instrument
Subsidy
Deadline
Rolling
Disbursement
Reimbursed after spend
Scheme duration
5 years

About this scheme

The Employment Linked Subsidy forms part of the Maharashtra Industries Investment and Services Policy 2025. It offers financial incentives to businesses that create direct jobs in the state, with the aim of supporting industrial growth alongside employment generation.

Under the scheme, the Government of Maharashtra reimburses a sizeable share of the employer's provident fund contributions. This lowers operating costs for companies and makes it easier for them to set up operations and grow their workforce within Maharashtra.

The subsidy applies to units in Group D, D+ and below, with a focus on regions that need extra support for industrial development and job creation.

Benefits are tied to the number of jobs generated, so the incentive structure rewards performance and is intended to support sustainable industrial development.

Who can apply

Eligible business forms
Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
Udyam registration
Not specified
MSME registration
Not specified
DPIIT startup recognition
Not specified
GST registration
Not specified
Where the business may be based
Maharashtra

- The unit must be situated in a Group D, D+ or lower-category region of Maharashtra. - The unit must record an Employment Factor exceeding 20 jobs for every ₹1 crore of investment.

How to apply

- **Check eligibility**: Verify that your industrial unit is classified under Group D, D+ and below, and that it satisfies the Employment Factor requirement of more than 20 jobs for every ₹1 crore of investment. - **Assemble documents**: Collect every document the application requires — evidence of where the unit is located, particulars of investment, EPF contribution records, and proof of the direct jobs generated. - **File the application**: Submit through the portal or department designated by the Maharashtra State Industries Department, making sure each form is completed correctly and all supporting papers are enclosed. - **Verification**: The relevant authorities will examine the application and the documents filed with it. - **Disbursement of subsidy**: Once verification and approval are complete, the reimbursement amount for which the unit qualifies is released to it, in line with the policy guidelines.

Apply on the issuer's site

How applications are assessed

Under the Maharashtra Industries Investment and Services Policy 2025, applications for the Employment Linked Subsidy are assessed against the policy's criteria. The 'Employment Factor' — direct jobs created for every ₹1 crore of investment — is the key measure determining both eligibility and the subsidy rate, and a unit must show an Employment Factor above 20.

Documentation submitted, such as investment proofs, EPF records and employment figures, is reviewed in detail to verify compliance with the policy's location requirements (Group D, D+ and below) and job creation performance. This assessment is carried out by the Maharashtra State Industries Department or its appointed agencies, which confirm whether the unit is eligible for the reimbursement claimed.

Frequently asked questions

What is the Employment Linked Subsidy?

Maharashtra's Employment Linked Subsidy reimburses employers for part of their EPF contributions, with the amount tied to the number of jobs they create.

Who is eligible to claim this subsidy?

Units in Maharashtra falling under Group D, D+ or lower categories qualify, provided they generate an Employment Factor exceeding 20 direct jobs for every ₹1 crore invested.

What is the 'Employment Factor'?

A unit's Employment Factor is the count of direct jobs it generates for every ₹1 crore invested. To qualify for this subsidy, that figure must exceed 20 jobs per ₹1 crore of investment.

How much subsidy can a unit claim?

Employers who qualify may recover half of their EPF contribution as an employer for up to 5 years, subject to a ceiling of ₹5 crore per unit across that period.

How long is the reimbursement provided?

The employer's EPF contribution is reimbursed for up to 5 years from the date of eligibility, capped at the overall maximum subsidy limit.

What is the application process for this subsidy?

A formal claim goes to the Maharashtra State Industries Department with documentation establishing eligibility on investment, location and job creation metrics, including EPF contribution details and employee records. These submissions are then checked against the policy guidelines.

Sectors

  • Epf
  • Job Creation
  • Subsidy
  • Maharashtra
  • Industrial Policy

Details last verified on 15 September 2026. Source: the issuer's published information.