Karnataka industry body calls for social security to promote growth of small industries
Updated: Mar 14, 2014 04:35:29pm
Bengaluru, Mar 14 (KNN) Karnataka Small Scale Industries Association (KASSIA) has called for an integrated scheme for social security and changes in the present labour laws on matters pertaining to wages, welfare etc for the MSME sector.
President, KASSIA, B P Shashidhar stressed upon the need for evolving a comprehensive and integrated scheme of social security and also amendment of the present labour laws on matters relating to wages, labour, welfare etc., for MSME sector, said a release.
Shashidhar was speaking at a special presentation of PF (Provident Fund) and ESIC (Employees State Insurance Corporation) followed by an interaction meeting held here yesterday by Karnataka industry bodies.
Among those present at the event were Additional Central Commissioner, Provident Fund, Government of India (GOI) M Narayanappa and Regional Director, ESIC, GOI, R S Rao.
Emphasizing the need for coverage on issues such as health, safety and social security, KASSIA President called for simplification of procedures to avail the same, so that industries can concentrate on their core activities.
He expressed the need for a Committee to be formed by the Department to simplify the provisions of the age old Acts in order to save effort, time and money for positive and productive improvement.
While acknowledging the existence of a focused legislation in the form of the MSMED Act of 2006, he said there were changes taking place in the characteristics of the functioning of small industries.
“Social security is one area in which specialised attention is necessary for healthy growth of small industries,” he said.
The small industry, he reiterated is a builder of modern India and so has to be nourished and patronized to do its job and contribute to the nation and the society to the maximum possible extent.
Panel Chairman, KASSIA B T Ugranad, presented a brief memorandum highlighting a few aspects that would make the implementation of ESI entrepreneur friendly.
He suggested that ESIC should include SSI entrepreneurs in the larger chain of insured persons for which a proposal could be worked out. He also recommended that employees should have the option of continuing to be in the ESI coverage of his own accord; and that applicability of ESI should be made after six months of the employee joining.
Even as he stressed the need to make implementation of ESI in the industry hassle free, he said that employers’ contribution should be reduced to 3 per cent; and that there should be an exit policy for sick units.
Ugranad also felt the need for opening one local office in the industrial belt on Whitefield Road which has been a long pending issue and also requested for providing a good hospital in the KIADB industrial area at Malur.
Responding to the suggestions, Additional Central Commissioner, Provident Fund N Narayanappa, said the interaction was an exercise in the learning process for all stakeholders.
He briefed the members about the effective functioning of the Provident Fund Department wherein within 30 days’ time, the settlement of claims has been cleared, and status of the information of the member can be viewed through website.
The Department, he said has been receiving grievances that the employer is accumulating the claims in their office and then submitting to the Department which is causing delay. He said that employers should send their claims on time to enable disposal of the same within 10 days. While earlier claims were settled by crediting to the member account through cheques, which would take 20 days to clear, there is now a provision whereby status will be sent through SMS if a client provided a mobile number.
He suggested that 3rd party audit by a Chartered Accountant may be thought over in an establishment where 300 employees were working for which he sought the reaction of KASSIA.
He informed that transfer claims can be applied online and that on the 10th of every month PF Adalat would be conducted in 16 Regional Offices.
Meanwhile Regional Director, ESIC R S Rao, commended the handbook brought out KASSIA regarding statutory rules of ESIC for the benefit of MSME sector. He gave a brief presentation on legislations on comprehensive social security of working in Independence India.
He requested all the stake holders particularly the employers to understand the schemes which were put together by a High Power Committee.
While stating that contribution they received was at a very low rate of 1.75 per cent, he said it was mandatory for the workers to contribute.
He briefed the gathering about ESI Schemes and latest developments, medical funds for spouse of insured persons, Medical Benefits, late registration and its consequences, extension of schemes to new sectors, functioning of Suvida Samagama scheme etc.
He assured industry bodies of looking into their representation and resolving their issues. Several industrials took the opportunity to interact with the government officials and received clarification on various issues. (KNN/ES)
President, KASSIA, B P Shashidhar stressed upon the need for evolving a comprehensive and integrated scheme of social security and also amendment of the present labour laws on matters relating to wages, labour, welfare etc., for MSME sector, said a release.
Shashidhar was speaking at a special presentation of PF (Provident Fund) and ESIC (Employees State Insurance Corporation) followed by an interaction meeting held here yesterday by Karnataka industry bodies.
Among those present at the event were Additional Central Commissioner, Provident Fund, Government of India (GOI) M Narayanappa and Regional Director, ESIC, GOI, R S Rao.
Emphasizing the need for coverage on issues such as health, safety and social security, KASSIA President called for simplification of procedures to avail the same, so that industries can concentrate on their core activities.
He expressed the need for a Committee to be formed by the Department to simplify the provisions of the age old Acts in order to save effort, time and money for positive and productive improvement.
While acknowledging the existence of a focused legislation in the form of the MSMED Act of 2006, he said there were changes taking place in the characteristics of the functioning of small industries.
“Social security is one area in which specialised attention is necessary for healthy growth of small industries,” he said.
The small industry, he reiterated is a builder of modern India and so has to be nourished and patronized to do its job and contribute to the nation and the society to the maximum possible extent.
Panel Chairman, KASSIA B T Ugranad, presented a brief memorandum highlighting a few aspects that would make the implementation of ESI entrepreneur friendly.
He suggested that ESIC should include SSI entrepreneurs in the larger chain of insured persons for which a proposal could be worked out. He also recommended that employees should have the option of continuing to be in the ESI coverage of his own accord; and that applicability of ESI should be made after six months of the employee joining.
Even as he stressed the need to make implementation of ESI in the industry hassle free, he said that employers’ contribution should be reduced to 3 per cent; and that there should be an exit policy for sick units.
Ugranad also felt the need for opening one local office in the industrial belt on Whitefield Road which has been a long pending issue and also requested for providing a good hospital in the KIADB industrial area at Malur.
Responding to the suggestions, Additional Central Commissioner, Provident Fund N Narayanappa, said the interaction was an exercise in the learning process for all stakeholders.
He briefed the members about the effective functioning of the Provident Fund Department wherein within 30 days’ time, the settlement of claims has been cleared, and status of the information of the member can be viewed through website.
The Department, he said has been receiving grievances that the employer is accumulating the claims in their office and then submitting to the Department which is causing delay. He said that employers should send their claims on time to enable disposal of the same within 10 days. While earlier claims were settled by crediting to the member account through cheques, which would take 20 days to clear, there is now a provision whereby status will be sent through SMS if a client provided a mobile number.
He suggested that 3rd party audit by a Chartered Accountant may be thought over in an establishment where 300 employees were working for which he sought the reaction of KASSIA.
He informed that transfer claims can be applied online and that on the 10th of every month PF Adalat would be conducted in 16 Regional Offices.
Meanwhile Regional Director, ESIC R S Rao, commended the handbook brought out KASSIA regarding statutory rules of ESIC for the benefit of MSME sector. He gave a brief presentation on legislations on comprehensive social security of working in Independence India.
He requested all the stake holders particularly the employers to understand the schemes which were put together by a High Power Committee.
While stating that contribution they received was at a very low rate of 1.75 per cent, he said it was mandatory for the workers to contribute.
He briefed the gathering about ESI Schemes and latest developments, medical funds for spouse of insured persons, Medical Benefits, late registration and its consequences, extension of schemes to new sectors, functioning of Suvida Samagama scheme etc.
He assured industry bodies of looking into their representation and resolving their issues. Several industrials took the opportunity to interact with the government officials and received clarification on various issues. (KNN/ES)
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