PM Garib KalyanYojana: Ludhiana industrialists urge govt to relax norms for all business establishments

Under the yojana, the govt’s decision to pay PF contribution, both of employer and the employees (12 per cent each), for the next three months is only applicable to business units with less than 100 employees

The city industrialists have urged the government to relax norms for all establishments and cover all categories of employees under Pradhan Mantri Garib Kalyan Yojana (PMGKY).

They say the provision announced by the government for availing the PF benefits by employers earning less than ₹15,000 per month will force many business establishments to go for salary cuts. (HT File)

Under the scheme, the government has decided to pay the employees’ provident fund (EPF) contribution both of employer and the employees (12 per cent each) for the next three months. However, the financial relief measures under PMGKY concerning PF as announced by finance minister Nirmala Sitaraman on March 26 is applicable to the establishments with less than 100 employees. Moreover, an establishment can avail the scheme only if 90% of its employees have an average salary of ₹15,000/ month or below.

Ludhiana Punjab Dyers Association that represents around 300 dyeing units in the city has recently written to the ministry of labour and employment urging the latter to relax the norms, so that every unit can avail the benefits at the time of financial crisis.

“If the government is keen on helping the establishments during the lockdown, it must extend PF benefits to all the categories of employees irrespective of their salary structure and number of employees in an organisation. Due to the conditions laid down by the ministry, we have not been able to avail the services even though we are in dire need of them,” told Bobby Jindal, president of Punjab Dyers Association.

Jindal, whose dyeing unit is on Tajpur Road, said his unit has around 100 employees, out of which 50 are paid above ₹15,000 per month.

“Many of our workers, including dyeing master and knitting master, earn above ₹15,000, which is why we will not be able to avail this scheme. We request the ministry to help us. Relaxing norms will help the government save millions of jobs,” told Jindal.

Similarly, Bahadur K Textile and Knitwear Association that comprises over 5,500 units in Ludhiana has also asked the ministry to ease the norms and include all establishments.

“The provision of employers earning less than ₹15,000 per month will force many business establishments to go for salary cuts. Why the government is laying down such conditions at the time of global health emergency? It is a defunct scheme and will help no one? Did I make a mistake if I employed more than 100 employees in my firm? Bigger units are facing more losses during this lockdown. Government is ignoring our plight” said Tarun Jain Bawa, president of Textile and Knitwear Association.

Bawa claimed that presently the employees’ state insurance (ESI) department has surplus of ₹84,000 crore, while there is unclaimed amount of ₹40,000 crore with the provident fund department.

“The government should use these surpluses to help both big and small establishments and not burden us with PF deposits right now,” he added.