Bring law against retrenchments, demands Congress

Our Bureau New Delhi | Updated on March 30, 2020 Published on March 30, 2020

The Opposition Congress has demanded the Centre to come out with a law against retrenchments in any companies for the next six months. The party has also asked the Centre to bear 70 per cent of the salaries and wages bills of MSMEs for three months.

“There shall be no retrenchment in any sector or company whatsoever for the next six months this shall be a Government Law and shall be applicable to every company/enterprise. We assume India Inc contributes around 40 per cent to GDP. Which is approximately ₹84 lakh crore. 10 per cent of the same is employee benefits ie around ₹8.4 lakh crore, out of which 15 per cent is at the lower end of the corporate salary structure,” said Congress spokesman Gourav Vallabh.

He said the are approximately 4.25 crore MSMEs in India and contribution of MSME sector to GDP is 29 per cent, which is approximately ₹61 Lakh crore. “Assuming wage bill of MSME to be 10 per cent of turnover, we can consider ₹6.1 lakh crore as the wage bill. One month of the same is around ₹50,000 crore and for three months it is around ₹1.50 lakh crore. 70 per cent of the same works out to about ₹1 lakh crore and assuming that about 45 crore are employed this works out to only ₹2,200 per person employed,” he said.

Published on March 30, 2020

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