Tax rebate to employees: New suggestions put forward by Indian Staffing Federations

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Recently the Indian Staffing Federations suggested the government allow income tax rebates to the individuals and the enterprises who had declared the domestic workers and other unorganized workers they hire as a result it would help them in quick formalization of 39 crores for the unorganized workforce in the country. 

The suggestions by the ISF were to submit the details for the consideration of finance ministry as soon as possible, comes at the time when the government is working to bring these workers under the social security net. The recommendations were already submitted to NITI Aayog and the labor ministry for consideration by ISF. It also said that to give jobs to the relocated laborers for workers into a parallel industry can be incentivized by providing a tax break for creating new opportunities for the migrant workers.

It was suggested by the ISF to the government that to provide the benefits of ICT against GST  for all the enterprises and the corporates that include the MSME sector, and also provide tax rebates of the said GST  contribution and the social security contribution from income tax returns. It was restricted by the staffing federation, that not to allow the states to take the lead in labor reforms and the staffing federation has also suggested the government to implement the four labor codes urgently. It also encouraged the government to create labor centric policies that focused on enhanced wages in hand and also lowering the threshold for coverage.

As per this, it will help more people to come under a formal net. The president of the Indian Staffing Federation Lohit Bhatia said that instead of during this in isolation, over the next 10 years we need to have a long term vision to bring the unorganized workers of 39 crores into the formal workforce. According to him for helping to get jobs for the millions of workers in rural India’s districts or nearby areas the staffing companies can mobilize and contribute their skills.

According to the view of ISF, the loss of employment which leads to reverse migration of around 12.20 crore daily wage workers, the loss of jobs for around 5 crore domestic workers and the lack of social security for the 2 crore gig workers and fear of job losses for over 12.20 crore MSME workers is a huge challenge for the government and is also is putting a lot of financial pressure on the government and the industry, the ISF workers have over one million workers in its fold.

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