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Budget 2023: Labour Unions Seek Social Security, Insurance Coverage For Informal Workers

Labour unions and employer organisations asked in the pre-Budget meet for the new labour laws to be made operational.

<div class="paragraphs"><p>(Source: Finance Ministry/Twitter)</p></div>
(Source: Finance Ministry/Twitter)

The Finance Ministry concluded its pre-Budget consultation for the upcoming Union Budget on Monday, with the last day's meetings being held with labour unions and economists.

Labour unions and employer organisations alike spoke for the better treatment of informal workers/contract workers, who are not covered under employer-contributed social security benefits, Pradeep Bhargava, co-chairman of the CII National Committee on Industrial Relations, told BQ Prime.

Bhargava mentioned that a common recommendation was for coverage of unorganised workers under the Employees' State Insurance Corp., to help them get access to healthcare benefits.

"The new labour laws are not operational. If these are made operational, all these—social security benefits for informal sector—would get covered," Bhargava said.

The Bharatiya Mazdoor Sangh which also participated asked for enhancement of the monthly honorarium for all types of scheme workers, including aanganwadis, ASHA workers, and midday meals workers.

The BMS also demanded the clearing of wage dues in loss-making public sector units such as NTC Mills, Heavy Engineering Corporation Ltd. etc, hinting at a rethink of policies in terms of reviving loss-making industries.

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Other suggestions included:

  • Increase the minimum pension from Rs 1,000 per month to Rs 5,000 per month and link it with variable dearness allowance.

  • Enhance deposit-linked insurance under General Provident Fund rules and Central Government Employees Group Insurance Scheme.

  • More fund allocation for hospitals to be set up under the ESIC.

  • Applicability of Ayushman Bharat facility to more people.

  • Get industry involved into skilling, so the workers have more scope for employability.

  • A platform for migrant workers, so they are aware of the facilities they are entitled to.

Representing the Federation of Indian Micro and Small & Medium Enterprises, its Secretary General Anil Bhardwaj told BQ Prime that he spoke on the cost and compliance problems faced by MSMEs in employing informal workers.

"The labour-intensive MSME sectors, include textile, garment, gems and jewellery, leather, etc., which are export-related and need greater flexibility in labour laws," Bhardwaj said.

MSMEs are bogged down by cost and compliance, in terms of providing social security, he said.

They proposed a 10% cap on social security benefits from employers, Bhardwaj said. It proposes that MSMEs pay 10% of the social security benefit against each employee to the government, which can then add and distribute the benefits accordingly, eliminating both cost and compliance issues.

"Right now, legislative social security requirements make up one third of the wages, which is substantial," Bhardwaj said.

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More than 110 invitees, representing seven stakeholder groups participated in eight meetings since last Nov. 21, when the pre-Budget meetings began.

The stakeholder groups included representatives and experts from agriculture and agro-processing industry; industry, infrastructure and climate change; financial sector and capital markets; services and trade; social sector; trade unions and labour organisations and economists, the Press Information Bureau said in a release issued earlier today.