Aatmanirbhar Gujarat Scheme for assistance to MSMEs: EPF Reimbursement to MSMEs
100% EPF reimbursement for new employees · up to ₹1,800/employee/month · Gujarat MSMEs
Aatmanirbhar Gujarat Scheme reimburses 100% of the employer's EPF contribution for new employees hired by MSMEs — capped at 12% of basic salary or ₹1,800/employee/month — reducing the cost of hiring and helping MSMEs grow their workforce.
About This Scheme
Aatmanirbhar Gujarat Scheme reimburses 100% of the employer's EPF contribution for new employees hired by MSMEs — capped at 12% of basic salary or ₹1,800/employee/month — reducing the cost of hiring and helping MSMEs grow their workforce.
Full official description
The "Aatmanirbhar Gujarat Scheme for MSMEs" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state's dynamic MSME sector, which significantly contributes to employment, GDP, and exports. Effective from October 5, 2022, to October 4, 2027, this initiative supports growth, investments, and the vision of "Aatmanirbhar Gujarat" and "Aatmanirbhar Bharat."
The component "Financial Support to MSMEs in ZED Certification" provides reimbursement of the employer's statutory contribution under the Employees' Provident Fund (EPF) to eligible MSMEs for their new employees in Gujarat.
Benefits
- Reimbursement: 100% of employer's statutory EPF contribution for new hires
- Cap per employee: 12% of basic + DA, or ₹1,800/month — whichever is lower
- Duration: For a defined period per new employee
- Goal: Reduce hiring costs and encourage MSME workforce expansion
💡 Why Startups Should Care
EPF compliance adds roughly 12% to your payroll cost per employee. This scheme reimbursing 100% of that contribution for up to 3 years per new hire makes hiring in Gujarat meaningfully cheaper. For a startup hiring 20 people at ₹15,000/month average salary, that's up to ₹4.3 lakh/year back.
Who Can Apply (Eligibility)
Micro, Small, or Medium enterprise registered with MSME/Udyam in Gujarat, hiring new employees after the scheme's commencement date.
Exclusions
- Available only to registered MSMEs in Gujarat
- Reimbursement covers only new employees (not existing staff)
- Capped at ₹1,800 per employee per month or 12% of basic+DA, whichever is lower
- Assistance available for a limited period as per scheme terms
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and register as a new investor.
- Log in and select the Aatmanirbhar Gujarat MSME scheme — EPF Reimbursement.
- Fill in enterprise details and new employee hiring details.
- Upload the application form (signed and stamped), Udyam/IEM/LOI certificate, EPF payment challans, and employment records.
- Submit and note your Reference Number.
- Annual reimbursement is processed after EPF payment verification.
Frequently Asked Questions
What is the "Aatmanirbhar Gujarat Scheme for Assistance to MSMEs"?
The "Aatmanirbhar Gujarat Scheme for Assistance to MSMEs" is a state initiative designed to support and strengthen the MSME sector in Gujarat. It aims to enhance growth, encourage investments, and contribute to the vision of self-reliant Gujarat and India.
When is the scheme operative?
The scheme is operative from October 5, 2022, to October 4, 2027, covering a period of five years.
What are the objectives of the scheme?
The scheme aims to boost MSME growth, enhance the industrial ecosystem, encourage investments, and contribute to Gujarat's and India's self-reliance vision.
What are some initiatives included in the scheme?
The scheme includes the establishment of new industrial estates, sector-specific parks, and infrastructure projects, along with amendments to the Gujarat Industrial Policy 2020 to further support MSME growth.
What is the purpose of this component?
The component aims to reimburse EPF contributions for new employees to promote job creation and support MSMEs.
Who is eligible for the scheme?
New enterprises and existing enterprises undertaking expansion/diversification that commence commercial production during the scheme's operative period are eligible.
What does "new employee" mean under this scheme?
A new employee is someone who did not have a Universal Account Number (UAN) prior to joining the eligible enterprise.
What is the reimbursement period under the scheme?
The reimbursement is available for a maximum of 10 years from the date of commencement of commercial production.
How much EPF reimbursement can an enterprise claim per employee?
The maximum reimbursement is 12% of basic salary plus Dearness Allowance (DA) and retaining allowance or [?]1800 per month, whichever is lower.
Is the scheme applicable to employees working outside Gujarat?
No, the scheme applies only to employees working in Gujarat.
Can an enterprise claim EPF reimbursement under multiple schemes?
No, enterprises availing EPF reimbursement under other schemes for the same period are not eligible under this scheme.
What are the key conditions for reimbursement?
Reimbursement is provided for incremental employee count and based on verified EPF payment receipts.
How is the reimbursement processed?
Reimbursement is processed quarterly after submission of payment receipts and verification by authorities.
Can MSMEs with existing employees benefit from this scheme?
Yes, but only for incremental employees who join after expansion/diversification during the scheme's operative period.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Printed application form with declaration (signed by authorised person with stamp)
- Udyam registration / IEM / LOI certificate
- EPF payment challans (showing employer contribution)
- Employee attendance and salary records
- Bank account details of enterprise