Cabinet approves Special
Package for Job Creation & Export
Promotion in Textile & Apparel Sector
Special
Package to create 1 Crore Jobs in 3 Years in Textile and Apparel Sector
The Union Cabinet chaired by Hon’ble Prime Minister
Shri Narendra Modi has announced a set of measures that would bring in more
flexibility in labour laws in the textile and apparel sector. These measures
form a part of the special package announced by the Government today, for job
creation & export promotion in the sector.
Following
are the labour reform measures, announced by the Government today:
Increasing
overtime capsOvertime
hours for workers will not be allowed to exceed 8 hours per week in line with
ILO norms. This shall lead to increased earnings for the workers.
Introduction
of fixed term employmentConsidering
the seasonal nature of the industry, fixed term employment will be introduced
for the garment sector. A fixed term workman will be considered at par with
permanent workman in terms of working hours, wages, allowanced and other
statutory dues.
Employee
Provident Fund Scheme ReformsEPF
will be made optional for employees earning less than Rs. 15,000 per month. This
will leave more money in the hands of the workers and also promote employment
in the formal sector.
Impact
in Three YearsThis
is expected to yield the following impact in three years:
Increase in exports by 1.4 billion US$
increase in employment by 1.75 lakhs
increase in investment by 4.2 billion US$
***
DJM
(Release ID :146420)