Maximize Profit with Haryana’s 10-Year Employment Subsidy

Haryana’s Employment Generation Subsidy (EGS) under HEEP 2020 offers one of the most lucrative incentives for industries—₹48,000 per employee per year for up to 10 years. This long-term financial support significantly reduces staffing costs, boosts profitability, and encourages industries to hire skilled, semi-skilled, and unskilled workers from Haryana.

Eligible units located in B, C, and D category blocks can claim the subsidy by hiring Haryana-resident employees earning below ₹40,000 per month and enrolled under PF/ESI.

Designed to strengthen industrial growth, the scheme benefits MSMEs, large enterprises, mega projects, thrust sectors, and import substitution units, making it a powerful tool for improving operational efficiency and long-term sustainability.

Introduction to the Haryana Employment Generation Subsidy

The Employment Generation Subsidy (EGS), introduced under the Haryana Enterprises and Employment Policy (HEEP) 2020, is a flagship initiative aimed at fostering industrial growth and creating sustainable employment opportunities in Haryana. Officially notified under Chapter 14, Gazette Notification No. 25/05/2020-4IB-I dated December 29, 2020, the scheme focuses on incentivizing industries that generate direct employment for Haryana residents.

With rising unemployment and increasing demand for skilled manpower, the EGS provides strong financial support to industries hiring skilled, semi-skilled, and unskilled workers from Haryana. The scheme came into operation on January 1, 2021, and will continue for five years, benefiting enterprises across the state.

Essential Eligibility Criteria for Enterprises & Employees

Enterprise Eligibility

To qualify, units must ensure:

Commercial production began on or after Jan 1, 2021.
Mandatory registrations: IEM/Udyam and HUM.
Necessary approvals such as NOC/CLU, wherever applicable.
Unit must be actively in production—no subsidy for closed units.
Must not fall under the restrictive industry list (includes brick kilns, stone crushers, highly polluting units, tobacco-related units, etc.).

Employee Eligibility

Employees claimed under the subsidy must meet:

Must be Haryana residents with valid HRC.
Monthly salary must be < ₹40,000.
Should be on the payroll or under a valid contract.
Must possess ESI/PF registration for verification.

Regional Focus & Target Beneficiaries

Region-Based Subsidy Support

To promote balanced industrial development, Haryana categorizes its blocks into four groups:

A – Developed
B – Intermediate
C – Backward
D – Most Backward

The ₹48,000/year subsidy is available for units situated in B, C, and D blocks—driving investment toward underdeveloped regions.

Enterprises Eligible for Incentives

Enterprise Type	Eligibility Criteria	Incentive Available
Mega Projects	High Fixed Capital Investment (FCI): ₹200 Cr in B Blocks, ₹100 Cr in C Blocks, ₹75 Cr in D Blocks	₹48,000 per employee per year for 10 years
Large Enterprises	Plant & machinery investment > ₹50 Cr and turnover > ₹250 Cr	Eligible in B, C, and D blocks
MSMEs	Must employ minimum 50% Haryana residents	₹48,000/year subsidy in B, C, D blocks
Thrust Sector Industries	Auto, Textiles, Defence, Pharma, Chemicals, Energy, etc.; must employ 50% Haryana residents	Eligible in B, C, D blocks
Import Substitution Units	Includes Lithium Batteries, Semiconductors, APIs, Aerospace parts, etc.	Eligible for uniform subsidy in B, C, D blocks

How KIP Can Help You

KIP specializes in simplifying government incentives and ensuring businesses receive maximum benefits under schemes like Haryana’s EGS. Our team provides end-to-end support—from project assessment to documentation, compliance, and final subsidy disbursement.

OUR Services :

Eligibility Assessment: Identify applicable subsidies and calculate your maximum benefits.
Subsidy Viability Reports (SVR): Detailed projections showing how much subsidy you can secure over 10 years.
Financial Feasibility Reports (FFR): Realistic financial modeling for new or expanding units.
End-to-End Coordination: Liaison with government departments for approvals and disbursement follow-ups.
Strategic Advisory: Guidance to structure your workforce and operations to maximize subsidy benefits.

Frequently Asked Questions (FAQs)

Q1: What is Haryana’s Employment Generation Subsidy?

A subsidy offering ₹48,000 per Haryana employee per year for 10 years.

Q2: Who can apply?

MSMEs, Large Units, Mega Projects, Thrust & Import Substitution sectors in B, C, D blocks.

Q3: What employees qualify?

Haryana residents with HRC, earning < ₹40,000/month, and registered under PF/ESI.

Q4: What unit registrations are needed?

IEM/Udyam, HUM, and NOC/CLU.

Q5: What is the application deadline?

Apply within 3 months of FY closing or scheme notification.

Q6: Are special sectors eligible?

Yes. Thrust and Import Substitution sectors get full eligibility in B, C, D blocks.

Maximize Profit with Haryana’s 10-Year Employment Subsidy

Introduction to the Haryana Employment Generation Subsidy