A state-run fund should collect small sums from those in well-paid jobs, which can be utilized for creating employment opportunities. Explain (200 Words)
Refer - Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 4 years
Employment opportunities in the organised sector and in public sector establishments are limited. Further, those who secured employment by reason of communal reservation are actually privileged. They owe an obligation to the millions of unemployed youth in the country.
A plan for employment
· Rationale: Epidemics and technological revolutions are transformative not only in how societies function but in how they disrupt the job market: some jobs are rendered redundant while others are created anew.
· Job security is not assured for anyone any more. It is now common for entire industries to disappear, compelling people to re-train and adapt themselves to the changing workforce needs.
· Fund: A Government of India Corporation should be formed to collect contributions and to disburse subsidies (Disbursement of Subsidy for Employment, DOSE). Initial funds for DOSE BHARAT will be through an en masse transfer of the Annual Budget for MGNREGA.
· All salaried employees, who are income tax assesses, will be mandated to contribute 5 per cent of their taxable income to DOSE BHARAT. Likewise, government pensioners, but at 10 per cent of their pension.
· Subsidy: This proposal’s mainstay is to design a stimulus package that is partly self-sustaining. Briefly, employers should get a subsidy for the wages they pay their employees, albeit using a scale that is based on their number of employees (see chart).
· The benefit of the subsidy will not be applicable to government undertakings. The subsidy should be made available to the unorganised service sector, including individuals who employ domestic help or geriatric-care personnel.
· Beneficiaries and guidelines: The employers who enrol themselves upon payment of a modest amount of subscription to become member of DOSE BHARAT can make a claim for incentive on employment of persons. This enrolment cost will be used to offset administrative expenses.
· As reimbursement strategy, each employer must first file with DOSE the details of the new hires including the intended salary. The employer is then expected to pay the entire wage, and retroactively claim the subsidy from DOSE as an annual refund. The employee should be spared all paperwork other than his/her own tax filing.
