59 percent of employers in the country want to ‘formalize’ the workforce

Findings from TeamLease’s Latest Survey

Mumbai : After the impact of the Corona crisis, employers feel the need to formalize their workforce more than ever, and according to the findings of a recent survey, more than half i.e. 59 percent of employers have called their ‘unorganized’ ‘organised’ ‘ has expressed its intention to do so. By involving employees in regular service. In fact, 80 percent of the big industries have started efforts for such a change.

More than 90 percent of India’s labor force is employed in the informal or unorganized sector. These workers, who work without any service conditions or job security, do not even get the benefit of social security schemes. However, following the implementation of labor reforms with consolidation of 44 different labor laws into four labor codes, there is interest among employers to look after the health and safety of workers, Balasubramaniam A. Told. He briefed reporters on Wednesday about the findings of a recent survey of 230 employers in industries with the highest unorganized workforce, such as consumer products, consumer electronics, and healthcare and pharmaceutical manufacturing.

When it comes to formalizing the workforce, 65 percent of employers across all three sectors surveyed cite the increased cost of employee payroll as the most challenging aspect. According to Balasubramaniam, after changes in the formalities i.e. minimum wage, provident provident fund (EPF), membership of state health insurance boards, the total cost to employers increases by an average of 20 per cent. For this reason, though 81 employers in the micro and small scale sector are inclined towards formalization of the workforce, most of them feel that the process should be done through third party mediation and assistance. Balasubramaniam said that if the workforce is formalised, even these small enterprises benefit from a significant reduction in manpower of up to 10 per cent per month.

For more Business updates, Click here.

Leave a Comment