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Textile: Cabinet approves special package for employment generation

Textile: Cabinet approves special package for employment generation

India Blooms News Service | | 22 Jun 2016, 10:15 pm
New Delhi, June 22 (IBNS) The Union Cabinet under the Chairmanship of Prime Minister Narendra Modi on Wednesday given approval for a special package for employment generation and promotion of exports in Textile and Apparel sector.

The move comes in the backdrop of the package of reforms announced by the Government for generation of one crore jobs in the textile and apparel industry over next 3 years.

The package includes a slew of measures which are labour friendly and would promote employment generation, economies of scale and boost exports. The steps will lead to a cumulative increase of US$ 30 bn. in exports and investment of Rs. 74,000 crores over next 3 years, read a government statement.

The majority of new jobs are likely to go to women since the garment industry employs nearly 70% women workforce. Thus, the package would help in social transformation through women empowerment.

Salient features of the package announced are:

A.    Employee Provident Fund Scheme Reforms

·         Govt. of India shall bear the entire 12% of the employers’ contribution of the Employers Provident Fund Scheme for new employees of garment industry for first 3 years who are earning less than Rs. 15,000 per month.

·         At present, 8.33% of employer’s contribution is already being provided by Government under Pradhan Mantri Rozgar Protsahan Yojana (PMRPY). Ministry of Textiles shall provide additional 3.67% of the employer’s contribution amounting to Rs. 1,170 crores over next 3 years.

·         EPF shall be made optional for employees earning less than Rs. 15,000 per month

·         This shall leave more money in the hands of the workers and also promote employment in the formal sector.