New Job Schemes May Fast-Track Code on Wages Implementation
New Job Schemes May Fast-Track Code on Wages Implementation
UV INDIA NEWS: The Labour Ministry has initiated consultations with trade unions regarding framing rules for employment-linked incentive (ELI) schemes, aiming to roll them out by December-end. During a meeting on Wednesday, one essential suggestion was to expedite the implementation of the Code on Wages, ensuring that ELI benefits are accessible across all sectors.
Representatives from 10 trade unions were asked to provide their views on the ELI schemes, including recommendations for potential adjustments. A significant recommendation was to extend these schemes to micro, small, and medium enterprises (MSMEs) to encourage their employees to join the workforce.
Union members emphasised the importance of linking the Aadhar data of scheme beneficiaries with EPFO to prevent duplication. They also called for measures to address rural labour migration to urban areas by earmarking additional funds for industries in those regions.
The meeting also discussed the possibility of overhauling labour codes and implementing the Code on Social Security 2020 and the Code on Wages 2019, alongside the Occupational Safety, Health and Working Conditions Code 2020 and the Industrial Relations Code 2020.
The five proposed ELI schemes, which require an outlay of approximately ₹2 lakh crore, aim to provide job and skill development opportunities to over 41 million youth over five years:
Scheme A: This scheme targets first-time formal sector employees, offering up to ₹15,000 as one-time wages in three instalments through direct benefit transfers (DBT).
Scheme B: Focuses on job creation in manufacturing, providing incentives for the employment of first-time employees based on their EPFO contributions during their first four years.
Scheme C: Supports small and micro enterprises with subsidies of ₹3,000 per month for two years towards hiring apprentices with salaries of up to ₹10,000 per month.
Scheme D: A centrally sponsored scheme announced in 2022 to skill 41 million youth, including a ₹1,500 stipend for internships and apprenticeship allowances.
Scheme E: Offers internships to 50,000 young graduates with allowances and one-time stipends.
Labour Minister Mansukh Mandaviya emphasised the government’s focus on making the schemes more accessible and sustainable to provide meaningful employment opportunities for youth nationwide. The ministry also considers ways to enforce the Minimum Wages Act of 1948 and extend ELI benefits to all sectors, ensuring broader applicability and impact.
