ISF’s suggestions, which will soon be submitted to the finance ministry for consideration, comes at a time when the government is working on ways to bring these workers under the social security net. ISF has already submitted its recommendations to NITI Aayog and the labour ministry for consideration.
“Bringing jobs to relocated labourers or workers into a parallel industry can be incentivized by giving a tax break for creating opportunities for migrant workers,” it said.
ISF has suggested the government provide the remitter the benefits of ICT against GST for all enterprises and corporates including the MSME sector, provide tax rebate of the said GST contribution and social security contribution from income tax returns of the individuals thereby driving the focus towards formalization.
Further, the staffing federation has suggested the government urgently implement the four labour codes and do not allow states to take the lead in labour reforms. Besides, it has urged the government to frame labour-centric policies with focus on enhanced wages in-hand and lowering the threshold for coverage so that more and more people come under the formal net.
“Instead of doing things in isolation, let us have a long term vision to bring the 39 crore unorgansied workers into the formal workforce over the next 10 years,”Lohit Bhatia, president of the Indian Staffing Federation said.
According to Bhatia, the staffing companies can co-contribute to skilling and can become mobilisers in rural India to help millions of workers get jobs in their districts or nearby areas.
ISF is of the view that the loss of employment leading to reverse migration of 12.20 crore daily wage workers, loss of jobs for five crore domestic workers, lack of social security for two crore gig workers and fear of job losses for 12.20 crore MSME workers is putting a lot of the financial pressure on government and industry. ISF has one million workers in its fold.
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