Implementation of labour codes, lower GST rate can help in formalisation of India’s workforce
Removal of employment bottlenecks, urgency to implement the four Labour Codes, policy tweaks and a rejig in the goods and services tax rate for employment services are some of the measures suggested in a new report that could help in the formalisation of India’s workforce.
“With almost 85% informal labour, India needs a structural shift or overhaul to move towards formalisation. India requires a vital push for formal employment to raise sustainable livelihood through social security protection for over 40 crore informal workforce,” said a report titled India @ Work : Vision Next Decade by the Indian Staffing Federation.
As part of its recommendations, it has called for considering employment services as ‘merit services’, with lower GST slab tax rates at 5% with ICT benefits instead of the current 18% rate and has also suggested linking of skilling initiatives to employment.
