Employers are being offered £5000 to take on disabled staff who have lost their jobs with the closure of Remploy factories.
Twenty-eight workers were made redundant at the Edinburgh unit when it closed.
The Scottish Government incentive was made in response to redundancies caused by the UK Government’s decision to withdraw funds from the so-called sheltered business.
Enterprise minister Fergus Ewing, who announced the new fund to MSPs at Holyrood, said: “I have been extremely concerned about the closure of Remploy factories across Scotland since the Department for Work and Pensions announced the beginning of the process this summer. The Scottish Government’s first objective is to try to secure the jobs of those Remploy workers still employed by the company.”