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April 16, 2020: Subject: Recommendations On Support To Organizations For Commencement of Business Activity

1. The letter requests the Minister of Labour and Employment to consider extending the deadline for PF and ESIC contributions from 30 to 60 days for March, April, and May due to the extended lockdown. 2. It also asks the government to pay both employer and employee PF contributions (12% each) for the next three months for establishments with up to 100 employees earning less than Rs. 50,000 to provide more relief during the pandemic. 3. Additionally, the letter suggests exploring extending medical insurance to all workers through existing schemes like ESIC or Ayushman Bharat to help employees and employers during this time.

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27 views

April 16, 2020: Subject: Recommendations On Support To Organizations For Commencement of Business Activity

1. The letter requests the Minister of Labour and Employment to consider extending the deadline for PF and ESIC contributions from 30 to 60 days for March, April, and May due to the extended lockdown. 2. It also asks the government to pay both employer and employee PF contributions (12% each) for the next three months for establishments with up to 100 employees earning less than Rs. 50,000 to provide more relief during the pandemic. 3. Additionally, the letter suggests exploring extending medical insurance to all workers through existing schemes like ESIC or Ayushman Bharat to help employees and employers during this time.

Uploaded by

AryanSahni
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Confederation of Indian Industry

249 F, Sector 18, Udyog Vihar Phase IV


M S Unnikrishnan Gurgaon 122 015 (Haryana) India
Chairman, CII National Committee on T : +91-124-401 4060-67
Industrial Relations F : +91-124-401 4080
E : [email protected]
W : www.cii.in

April 16, 2020

Subject: Recommendations on support to organizations for commencement of business


activity

Dear Shri Gangwar ji,

At the outset, I would like to thank you and the Ministry of Labour & Employment, Government of India
for taking several initiatives to help the Workers and Industry overcome the current challenging
situation. Industry welcomes the steps taken by Ministry of Labour & Employment with respect to ESIC
& EPFO.

I would like to suggest some further support for the Government of India and your kind consideration to
further ease the operations for Industry:

1. Extending the date of PF & ESIC contribution.


I would like to thank you for considering CII recommendations on extending PF contribution date
and having done so till 15 May 2020.

Since Hon’ble Prime Minister has now announced the extension of lockdown till 3rd May 2020,
we would request you to kindly consider the extension of PF contribution from current 30 days
to 60 days for each month March, April and May. This will enable Industry to maintain the cash
flow and provide much required relief.

2. Payment of EPF by Government of India, for both Employers and Employees (12% each)
contribution, for the next three months and applicable for establishments with up to 100
employees and where 90% employees drawing wages less than 15K under PMGKY.

The recent announcement of PF contribution by government under PMGKY will only benefit
very limited establishments due to the parameters set. Given the current economic and social
conditions, I would request you to consider extending the benefit of the scheme to more
establishments by removing the eligibility cap of 90% drawing salary below 15K.
It is suggested that the benefit be applicable for establishments with up to 100 employees for
employees drawing wages less than Rs.50,000
This will ensure the benefit of the scheme to more beneficiaries particularly the MSMEs.

3. The MHA guidelines issued for the commencing business operations mandates the Medical
Insurance of the workers.

Kindly explore the provision of extending medical insurance to each worker through ESIC or
Ayushman Bharat. This will help both employees and the employers and will help to locate and
create a database of even daily wage earner.

Page 1 of 2
Confederation of Indian Industry
249 F, Sector 18, Udyog Vihar Phase IV
M S Unnikrishnan Gurgaon 122 015 (Haryana) India
Chairman, CII National Committee on T : +91-124-401 4060-67
Industrial Relations F : +91-124-401 4080
E : [email protected]
W : www.cii.in

4. Kindly request State Governments to ensure Minimum Wages to the daily wage earners through
funds under social security and welfare schemes. There is also a need for States to put the
revision of Minimum wages on hold for at least one year.

5. Address the shortage of workforce faced by industry for commencement of business:

Migrant workers residing in shelter homes or available locally near the Industrial belts should be
mapped, and after clearing the COVID test, they can be deployed to the nearest factories. This
will help them get livelihood and ensure the wages in the coming time. Since inter-state
movement is difficult at this point of time, CII along with the State Governments and District
Administration can work together in mapping and deploying the workers in the industry
becoming operational while ensuring medical facilities and transport is provided.

6. To encourage Organizations to retain the Job Offers and promote fresh employment Government
can consider restarting Pradhan Mantri Rojgar Protsahan Yojana.

7. Adjustment of leaves. Apart from the current challenge of deploying workforce, maintaining
productivity in the coming months will be a challenge, as the Employees who have reached the
threshold tend to avail their leaves at the end of the year. As the lockdown has been extended
beyond 30 days, we request 15 days Paid Leaves be allowed to be adjusted by the employer.
The workers will get full salary for the adjusted 15 days but contribute their 15 days leave and
this will help the organisation in retaining the workforce. We request you to issue advisory to
address this issue specific for this year as it will be a fair and reasonable.

I sincerely hope you will consider the request favorably and look forward to your kind consideration.

Regards,

M S Unnikrishnan

Copy to:

1. Shri Heeralal Samariya, Secretary, Ministry of Labour & Employment

To,
Shri Santosh Kumar Gangwar
Minister of State (Independent Charge)
Ministry of Labour and Employment (MoLE)
Government of India
Shram Shakti Bhawan, Rafi Marg
New Delhi – 110001 Page 2 of 2

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