Pay allowance to registered unemployed youth: Centre to states

Mar 27 2012, 22:03 IST
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SummaryThe allowance will be given to youths registered with employment exchanges.

The government has communicated to all states the recommendation of a parliamentary panel for payment of unemployment allowances to youths registered with employment exchanges.

"The desire of the standing committee of paying unemployment allowances to registered unemployed youth with employment exchanges have been communicated to all states," a standing committee on labour report tabled in Parliament today said.

The action taken by the Labour and Employment Ministry came in the wake of the suggestions of the panel that while some states such as Chhattisgarh, Harayana, Punjab and Kerala are paying unemployment allowances, others should follow suit.

The panel report said the Ministry has also proposed to set up a tripartite committee which will look into the issue relating to private placement agencies and "how to control and regulate their illegitimate activities".

While the panel has expressed concern over some private placement agencies mislead unemployed youths, the Ministry said the issue was being debated at various levels with much "severity".

The committee also drew the attention of the Labour Ministry that the expenditure as compared to the cess collected under the construction workers cess is almost nil in some states while nominal in other.

The Ministry, according to the report, has replied that the Centre was pursuing with the states for speedy implementation of the provisions of the Act governing benefits for construction workers.

While a special group has been constituted under the Labour Secretary to monitor and review implementation of the Act, the Ministry has also informed that the state governments have been asked to workout an action plan for giving adequate publicity about their rights and benefits.

On the issue of updation of the accounts of EPF subscribers, the Ministry has said the concern of the parliamentary panel that there is no regular updation has been taken in "true spirit".

It said that up to November 1, 2011, during the ongoing financial year, a total of 10.63 crore member accounts have been updated while all the field officers have been directed to update all the accounts by March 31.

Further, the Ministry said the in-operative accounts cannot be treated as "dead account" as was suggested by the panel as EPFO was only a trustee of the members fund.

The panel has expressed concern that 50 per cent accounts of the over 5.57 EPF subscribers were lying in-operative, suggesting the money be transferred to "dead account" if the subscribers fail to withdraw their money within six months.

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