Department of Electronics, IT and BT / KITS

Reimbursement of PF/ESI

GRANTKARNATAKASTATE SCHEME

What it is for

Lowers the cost of formal hiring for young Karnataka startups by reimbursing part of their Provident Fund and Employees' State Insurance contributions for new employees.

Who can apply

KITS-registered startups that have not been operating for more than 3 years at the date of application; employer's PF/ESI contribution must be less than INR 21,000 per employee per month; employee must be on the company's payroll.

What you get

INR 3,000 per employee per month reimbursed for the first two years of employment, for new jobs created, capped at INR 12 lakh per company during the policy period.

How to apply

Apply online at the fiscal incentive application portal with employment records, PF/ESI contribution receipts/challans, bank statements, and a notarized affidavit.

Best suited for

Young Karnataka startups (under 3 years old) formally hiring employees who want to offset statutory PF/ESI costs.

Official links

Fiscal incentive application portal https://registration.eitbt.karnataka.gov.in/ktechregistration/dist/#/auth/login

Karnataka state scheme, summarised from the Karnataka Startup Policy 2025-2030 and its operational manual, last reviewed 2026-09-08. Amounts and eligibility are indicative — always confirm against the live scheme guideline before acting.