KASSIA demands subsidy for MSME employers up to 25% of minimum wages paid during first year to unskilled and semi-skilled workers

New Delhi, Mar 8 (KNN) Increment that has been done for skilled and un-skilled laborers is proving to be injustice for Small and Medium Enterprises (SMEs) as it is affecting their growth said, Basavaraj .S. Javali, President, Karnataka Small Scale Industries Association (KASSIA).

In January, KASSIA in its memorandum demanded from the government to subsidize the MSME employers by up to 25% of the minimum wages paid for the first year to unskilled and semi-skilled workers from the deprived section of society.

Speaking with KNN he said, “Our demand has not been addressed at all. SMEs are facing problem as these unskilled people are uneducated also, they don’t have any background and are jobless. SMEs make them skilled by educating and organizing training programs for them which requires huge amount.”

SMEs pay high wages to them and make them skilled, and once they possess all the skills they leave SMEs and go to big corporate firms which is a huge loss for small firms, he added.

Javali said, “SMEs that help government in making unskilled laborers skilled are deprived with the benefits that they should get.” (KNN/JM)