Skilling initiatives: The Budget 2021 must focus on employment generation
January 18, 2021 4:45 AM
Union Budget 2021 India: Even in the midst of the Covid-19 pandemic and the lockdown, the government notified our sector as ‘essential services’.
Budget 2021-22 We undertake skill development and ensure employability of 8th/10th pass, landless non-agricultural labour hailing from the poorest states.
By Rituraj Sinha
Indian Union Budget 2021-22: The private security and facility management sector, broadly classified as outsourced business services, offers minimum wage level employment to almost 1 crore citizens of India, creating livelihood for the neediest sections of our society. We undertake skill development and ensure employability of 8th/10th pass, landless non-agricultural labour hailing from the poorest states.
Even in the midst of the Covid-19 pandemic and the lockdown, the government notified our sector as ‘essential services’. Private security guards, cleaning staff and cash van/ATM workers continued to work through the lockdown, risking their lives to support police/local administration, hospitals, grocery stores/marts, e-commerce warehouses, etc.
The upcoming Union Budget 2021 must focus on employment generation to revive the economy:
Request 1: Tax break/improvement in 80JJAA of the Income-tax Act, 1961: We suggest amendment to Section 80JJAA of the Income-tax Act, 1961, to compute the eligibility in respect of employees who have completed 90 days (in place of 240 days) in FY ended March 31, 2021, and where there has been a net increase in employees as compared to September 30, 2020 (instead of March 31, 2020).
Request 2: Inclusion of employers above 1,000 employees in the Atmanirbhar Bharat Rojgar Yojana: We humbly suggest considering amendment to the ABRY to subsidise both employers’ and employees’ contribution of PF in respect of new employees or in respect of employees who have lost their jobs during the lockdown period and gaining reemployment even in respect of those enterprises employing more than 1,000 people.
Request 3: Support from banks: Considering that we continue to pay wages of lakhs of private security guards, cleaners and other such minimum wage workers, the sector will need adequate working capital support from banks. Therefore, our sector should be classified as a priority sector and banks should be advised to extend at least six months equivalent working capital credit lines to eligible security, facility management, manpower supply and cash logistics companies.
Request 4: GST Relief: Allow manpower supply and private security sector to deposit GST only after collection is received from the end-user.
The author is group MD, Security and Intelligence Services