Tamil Nadu budget announces 10% payroll subsidy to woman for two years

The announcement was made by Finance Minister Thangam Thennarasu in his budget speech for 2024-25, as the new scheme will bring more women into the state’s labour ecosystem.

Chennai: With an aim to further increase the number of women in its labour ecosystem, the Tamil Nadu government on Monday announced a scheme to offer a payroll subsidy of 10 per cent of the salary of women, differently abled and transgender employees for two years in all the new industrial units that employs more than 500 such people.

The announcement was made by Finance Minister Thangam Thennarasu in his budget speech for 2024-25. The new scheme will bring more women into the state’s labour ecosystem as Tamil Nadu accounts for 42 per cent of women workforce in the country.

Thennarasu said that as a state with the highest contribution to the number of women working in industries in India and with significant gender parity in its labour ecosystem, Tamil Nadu is a favoured destination for progressive investors.

“This scheme will offer a payroll subsidy of 10 per cent of the salary of women, differently abled and transgender employees for two years in all new industrial units providing direct employment to over 500 such individuals from Tamil Nadu,” Thennarasu said.

He also announced establishment of creches for infant children in all major SIPCOT industrial estates under public-private partnership to support working women.

He also said that a new tailor-made skill training programme will be introduced to facilitate women willing to re-enter the job market after taking a sabbatical for reasons such as marriage and pregnancy.

The budget also focussed on several women-centric schemes by allotting Rs 13,720 crore for the Kalaignar Magalir Urimai Thittam under which 1.15 crore women receive Rs 1,000 as monthly assistance and Rs 370 crore to provide Rs 1,000 every month to over 3 lakh girl students in government and aided schools who are pursuing higher education after completing their plus-two.

Focusing on industry, the minister announced an establishment of a new Space Industrial and Propellant Park in Thoothukudi district where Indian Space Research Organisation (ISRO) is building its second launch pad.

As the state emerges as a major hub for Global Capability Centres (GCC), Thennarasu said that the state will incentivise the creation of high paying jobs in new GCCs by providing a payroll subsidy of 30 per cent in the first year, 20 per cent in the second year and 10 per cent in the third year for jobs with pay above Rs 1,00,000 per month.

“The government will also facilitate setting up of GCCs in Coimbatore and Madurai. In the Budget Estimates, a sum of Rs 2,295 crore has been allocated for the Industries, Investment Promotion and Commerce Department,” the minister said, and added that Chennai will host a Global Start-up Summit in January 2025.

Madurai will get a state-of-the-art Industrial Innovation Centre, covering an area of 26,500 sq ft at a cost of Rs 24 crore with the objective of fostering innovation and supporting the growth of technology-based start-ups.

Coimbatore will also house two I-T parks covering an area of 20 lakh sq ft, at an estimated cost of Rs 1,100 crore.

A grand library and science centre named after Muthamizh Arignar Kalaignar will be set up in Coimbatore, Thennarasu said, adding that the institution will house books, magazines, literary journals, along with exhibits on various engineering and scientific streams like astronomy, robotics, virtual reality, natural science, among others.