Lok Sabha Question No. 6 (STARRED), answered on 2017-07-17
Subject: Working Paper of NIPFP on Employment
Ministry: LABOUR AND EMPLOYMENT
Asked by: HARI BABU KAMBHAMPATI

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA STARRED QUESTION NO. *6 TO BE ANSWERED ON 17th JULY, 2017

WORKING PAPER OF NIPFP ON EMPLOYMENT

- *6.   DR. KAMBHAMPATI HARIBABU:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a) whether a Working Paper of the National Institute of Public Finance and Policy (NIPFP) has noted that laws relating to labour are at the centre of anti-employment bias;
- (b) if so, the details thereof and the reaction of the Government thereto;
- (c) whether the Government has taken any steps to ease the labour laws to generate more employment in the country; and
- (d) if so, the details thereof?

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT

ANSWER (SHRI BANDARU DATTATREYA)

(a) to (d):  A Statement is laid on the Table of the House. *

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (d)  OF  LOK  SABHA STARRED  QUESTION  NO.  *6 DUE FOR REPLY ON 17.07.2017 BY DR. KAMBHAMPATI HARIBABU, M.P. REGARDING 'WORKING PAPER ON NIPFP ON EMPLOYMENT' (a) to (d): According to the Working Paper on Employment, Education and the State, 2017 of the National Institute of Public Finance and Policy (NIPFP), there are several factors at work for the low growth of overall employment and the slow pace of transfer of workers from the unorganized to the organized sector resulting  in  a  whole  range  of  policies  which  collectively  adds  up  to  an  antiemployment bias. Government  has  taken  several  steps  for  employment  generation  including reforms in labour laws as an ongoing process to update legislative system to address the need  of the hour and to make  them  more  effective and contemporary to the emerging economic and industrial scenario. The  Ministry  has  implemented  the  Shram  Suvidha  Portal  that  facilitates inspection  of  establishments  in  a  scientific  and  transparent  manner.  It  also provides for a common registration under Employees' Provident Fund Organisation  (EPFO)  and  Employees'  State  Insurance  Corporation  (ESIC)  and facilitates  submission  of  monthly  Electronic-Cum-Challan  (ECR).  The  Ministry has also rationalized the 56 register/  forms maintained under 9 Central labour laws to 5 register/ forms. In addition for 3 labour laws applicable to both States and  Centre  the  forms  have  been  reduced  from  36  to  12.  These  reforms  will facilitate compliance to labour laws. In addition, a new Scheme 'Pradhan Mantri Rojgar Protsahan Yojana' has been initiated  by  the  Ministry  of  Labour  and  Employment  in  the  year  2016-17  for incentivising industry for promoting employment generation with the allocation of Rs. 1000 crore. Under this scheme employers would be provided an incentive to  enhance  employment  where  the  Government  will  pay  the  employer's contribution  of  8.33%  EPS  made  to  new  employees.  In  textiles  (apparel  and made-ups) sector, the Government will also pay the 3.67% EPF contribution of employers in addition to paying the 8.33% EPS contribution. Government has announced a booster package of Rs 6000 crores for the textile sector which is an employment intensive sector. Government is also implementing the National Career Service having a portal (www.ncs.gov.in) for online registration and posting of jobs for job-seekers and provide other employment related services.

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