Govt framing new policy to boost jobs
The new job policy will be in conformity with the 12th Plan growth target, and might propose changes in various laws like the Minimum Wages Act, Contract Labour Act and EPF Act to bring a major chunk of workers in unorganised sectors under the ambit of the formal sector.
In recent years, the growth in direct employment in the organised sector has been almost flat as companies have relied heavily on contract workers. Rigid labour laws have kept 93% of the workforce in the informal sector — bulk of them in agriculture and the rest in small manufacturing units, construction and trade.
One of the major proposals for formalising the informal sector is to amend the Minimum Wages Act to make it mandatory for all workers across the country. “As it was difficult to maintain nationwide uniformity in wages under the present law that was not mandatory for states, sources said the government is considering a mandatory national floor level minimum wage,” a labour ministry official told FE.
Similarly, the government is planning to link the variable dearness allowance (VDA) to consumer price inflation to neutralise the effects of price rise on workers.
There is also a broad-based consensus on amending the EPF Act to raise the wage ceiling of
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