A redundancy scheme for Non-Volatile Memories (NVM) is described. This redundancy scheme provides means for using defective cells in non-volatile memories to increase yield. The algorithm is based on inverting the program data for data being programmed to a cell grouping when a defective cell is detected in the cell grouping. Defective cells are biased to either “1” or “0” logic states, which are effectively preset to store its biased logic state. A data bit to be stored in a defective cell having a logic state that is complementary to the biased logic state of the cell results in the program data being inverted and programmed. An inversion status bit is programmed to indicate the inverted status of the programmed data. During read out, the inversion status bit causes the stored data to be re-inverted into its original program data states.