The labour ministry has begun consultations with trade unions regarding the framing of rules of the Employment Linked Incentive (ELI) scheme, as it aims to roll out the schemes by December-end. One key suggestion that came up at a meeting convened by the ministry on Wednesday was to roll-out Code on Wages immediately, so that ELI benefits can be availed by the workers for all the sectors, sources said. As many as 10 trade unions were asked to give their views regarding the provisions of the ELI schemes, and suggestions were sought for changes in case necessary, sources said. A significant recommendation to the ministry was to include micro, small and medium enterprises (MSMEs) under the ELI scheme, so that MSME employees also get incentivized to join the workforce, the sources added. “We told the ministry that all the beneficiaries, the individuals who get fresh employment via the schemes, their Aadhar data should be linked with the EPFO to avoid duplicity…so that one individual doesn’t get the benefit again, if he/she changes job,” a member who attending the meeting said. “We also asked for earmarking additional funds for rural based industries, so that migration from rural areas to urban areas is curbed,” another member said. “Also, those individuals who have been employed for three-four years, some extra incentives should be given to them, for keeping them in the workforce,” the person added. A presentation on the ELI scheme also was made during the meeting by the ministry. Labour Minister Mansukh Mandaviya told the unions that the ELI scheme has been designed to encourage businesses to generate more employment as well as to provide meaningful and sustainable jobs for the youth of our country, an official release said. Sources said that discussions on labour codes enforcement also took place during the meeting. Even though some trade unions have asked for complete overhaul of the labour codes, some suggest immediate implementation of the Code on Social Security 2020, and Code on Wages 2019. The other two codes are: Occupational Safety, Health and Working Conditions Code 2020; Industrial Relations Code 2020. Trade union members suggested that Code on Wages 2019 should be implemented alongside the ELI schemes, as only then benefit on minimum wages would be accessible to all the beneficiaries of the schemes. The Minimum Wages Act, 1948 currently applies to workers employed under a few sectors, such as mining, agriculture, construction, railways, etc. The Code on Wages, meanwhile, aims to enforce minimum wages for all workers across sectors. “ELI will be beneficial only when Code on Wages is enforced, else, only a few sectors will benefit,” said a union member. The Budget had unveiled five schemes in total to provide employment and skilling opportunities to 41 million youth over a five-year period. It entails an outlay of around Rs 2 trillion. Three of these five schemes will be implemented through the Employee Provident Fund Organisation. The ‘Scheme A’ targets first-time employees in the formal sector registered with EPFO. It offers a one-month wage (up to Rs. 15,000) in three instalments, paid to employees through direct-benefit-transfer (DBT). ‘Scheme B’ focuses on job creation in manufacturing, where it incentivizes both employees and employers for the additional employment of first-time employees, offering benefits based on their EPFO contributions during the first four years of employment. And ‘Scheme C’ provides support to employers by reimbursing Rs. 3,000 per month for two years towards their EPFO contribution for each additional employee with a salary of up to Rs. 1 lakh per month. ‘Scheme D’ is a new centrally sponsored scheme, announced for skilling 2 million youth over five years, along with upgrading 1,000 Industrial Training Institutes (ITIs) to align with industry skill needs. ‘Scheme E’ aims to offer internship opportunities to 10 million youth in 500 top companies over the next five years, with an internship allowance of Rs. 5,000 per month and a one-time assistance of Rs. 6,000.
