In a progressive move aimed at promoting inclusivity and fostering economic growth, the Tamil Nadu Government has launched a special scheme to incentivize the employment of women, differently-abled, and transgender persons within the state’s industrial sector on March 20, 2025 . The scheme, announced aligns with the state’s longstanding commitment to gender parity and social inclusion in its labor market.
Key Features of the Scheme
The scheme, which aims to create more job opportunities for underrepresented groups, will provide a payroll subsidy of 10% of the salary paid to eligible employees for a period of two years. The subsidy applies to women, differently-abled, and transgender individuals employed in new industrial units within Tamil Nadu. This initiative is part of the Tamil Nadu Government’s continued efforts to enhance employment opportunities for marginalized groups in the workforce.
Eligibility Criteria
To qualify for the scheme, industrial units must meet the following conditions:
Industry Type: The unit must be engaged in manufacturing activities within Tamil Nadu.
Employment Requirement: The unit must create a minimum of 500 direct jobs for eligible individuals during the scheme period.
Domicile Requirement: All eligible employees must be domiciles of Tamil Nadu.
Special Focus on Differently Abled Employees: Only individuals with benchmarked disabilities, as defined by relevant authorities, will be eligible for the subsidy.
New Industrial Units: The industrial unit must be new and must commence operations within the scheme’s defined period.
No Prior Subsidy: The eligible unit should not have availed any structured assistance under the Tamil Nadu Policy, 2021.
Payroll Definition: Payroll subsidy will apply to the “basic wages” received by the employees, as outlined in Section 2(b) of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.
Exclusions: The subsidy will not cover payments made to key managerial personnel or members of the Board of Directors.
Duration of the Scheme
The scheme will be operational from April 1, 2024 to March 31, 2027. During this period, eligible units can avail of the payroll subsidy for the wages paid to eligible employees in the previous year.
Administrative Process
The Commissioner of Industries and Commerce will serve as the sanctioning and disbursing authority for MSME units under this scheme. For large industries, the Commissioner of Investment Promotion and Facilitation will oversee sanctioning, and the disbursement will be made through SIPCOT after the eligibility criteria have been fulfilled.
A Step Towards Inclusive Growth
Tamil Nadu has long been recognized as one of India’s top states for industrial growth, with a significant representation of women in its workforce. The introduction of this special scheme underscores the state’s commitment to inclusive growth by providing financial incentives to companies that prioritize diversity and inclusion.
By encouraging industrial units to hire more women, differently-abled, and transgender individuals, Tamil Nadu aims to further strengthen its position as a progressive and inclusive destination for investors while ensuring that the benefits of industrial growth reach all sections of society.
This initiative is expected to create thousands of new employment opportunities, uplift marginalized communities, and contribute to the state’s overall economic development, making it a significant step forward for Tamil Nadu’s future.
