Budget 2017: 3 interventions each for improving education and skills, and increasing formal employment.

Non-fiscal interventions for education and skills

Restructure education regulation: Innovation, quality improvement and quantity expansion in education is held back by the lack of separation of the regulator, service provider and policy-maker. Fixing government education delivery needs to be separated from education policy-making, which needs to be separate from a regulator that is agnostic to private or public delivery;

Amend the Right to Education Act. The Right to Education is overly centralised and overly focused on inputs. We must amend it to become the Right to Learning Act by giving power back to state governments and shifting focus from inputs to learning outcomes (curriculum, teacher training, assessments, etc). The Right to Education Act has led to massive corruption by block education officers and specific concerns need to addressed;

Remove ban on universities for online higher education: The regime cannot prevent foreign universities from operating in India online, but prevents Indian universities from developing capabilities in online education. All varsities should be allowed to launch online campuses.

Non-fiscal interventions for formal employment

Allow low-wage employees (people with less than Rs 20,000 per month salary) to choose mandatory salary confiscation: Today, low-wage employees only receive 55% of their salary because 45% goes to statutory deductions like EPFO, EPS, ESI, LWF, EDLI, etc. Low-wage employees do not have a 45% savings rate and prefer informal employment, where haath waali (in-hand) salary equals chitthi waali (on-paper) salary;

Aadhaar for employers: The proposal to adopt PAN as the universal enterprise number across all central government agencies has been stuck because of a ministry of labour demand for an establishment number. This is irrational;

Adopt paperless, presence-less and cashless labour law compliance.

This article was published in Financial Express: https://goo.gl/h3Jdgv

Author

Rituparna Chakraborty

Co-Founder & EVP
TeamLease Services

Latest Blogs

Employee Retention Strategies in Consumer Healthcare Sector

On-the-Job Training: One effective learning solution for combating attrition is on-the-job training provided at TeamLease Skills University. This can involve mentoring, job shadowing, or cross-training...

Read More

Why are Women Employed in Low Paid Work?

Let's explore the root causes behind why are women employed in low paid work: Gender discrimination: Whether deliberate or unintentional, gender discrimination is one of...

Read More

Employment Outlook: Hiring Sentiment for April-June Q1 FY24

Hiring intent by job level: The intent to hire at mid- and senior-level positions increased in Q1 Apr-Jun FY 2023-24 for both services (4% increase)...

Read More

Celebrating the CEOs of Every Home Enterprise

Women Working after Marriage A recent National Family Health Survey (NFHS-5) report suggested that only 32% of married women aged 18 and 49 are employed....

Read More

13 Reasons Why Staffing Solutions Can Ease Your HR Woes

Here are 13 reasons why companies should seek staffing solutions: Finding the Right Talent: In India, the country’s working-age population is expected to increase by...

Read More