India Explores Ways to Extend Covid-19 Support to Lower-Wage Workers
The Indian government is exploring ways to extend benefits of the Pradhan Mantri Garib Kalyan Yojana (PMGKY) to establishments with a larger portion of their workforce earning lower wages, as part of efforts to support businesses and workers during the Covid-19 pandemic. The country has been under lockdown since March 25, 2020, leading to widespread job losses and falling incomes.
To tackle these issues, the government is considering various measures. One proposal is to increase normal working hours by four hours a day, with overtime pay proportional to regular wages, with workers' consent. This could boost productivity and help businesses stay afloat. Additionally, the ministry of labour and employment may extend provident fund contribution dates to ease the financial burden on organisations.
The government is also looking into ways to facilitate the movement and accommodation of migrant workers, who have been heavily impacted by the lockdown. One suggestion is to map and deploy migrant workers to nearby factories to restore their incomes and reduce travel. Furthermore, businesses are facing labour shortages across all sectors as operations resume, highlighting the need for these measures.
The government's priority is to protect the workforce and their livelihoods as the lockdown is gradually lifted. To achieve this, coordinated action from central and state governments, along with trade unions, is crucial. The government could also contribute to employers' and employees' share of monthly ESIC contributions for the next three months to sustain business activities. Meanwhile, discussions are ongoing to improve legal and social protections for workers, particularly in sectors like delivery services, to support the workforce pool and reduce unemployment.
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