Mentors Comments:
- https://www.financialexpress.com/opinion/pm-modis-job-promotion-scheme-gains-momentum-lowers-costs-for-employers/1376605/
- Government schemes are important for mains. There can either be a direct question on schemes or information about schemes can help in preparing filler material for answers. The article highlights the role played by PMRPY in increasing formalization in economy, which is a major gain and hence needs to be prepared.
- Here, the first demand of the answer is to bring out the problem being faced currently – that of informalization of the workforce and the issues faced along with it. Thereafter, we need to explain PMRPY and how it helps in tackling the issue of informalization of the workforce. Next, we have to explain the impact of PMRPY and suggestions as to how to make it more effective.
- In the introduction, highlight the findings of the Arjun Sengupta committee which highlighted the level of informalization of workforce in Indian economy.
- In the start of the main body, discuss the problems faced as a result of informalization of workforce
- Explain about PMRPY and how it helps in tackling the problem of informalization of the economy – by dealing with the burden of EPFO and ESI for companies and the advantages that it has had including preventing tax evasion.
- Thereafter, discuss the positive impact of this scheme and suggest ways of improvement
- In conclusion, highlight that the creation of formal jobs is one of the biggest challenges and the scheme does well in addressing some of the issues.
Answer:
The National Commission for Enterprises in the Unorganised Sector (NCEUS) in its report on Social Security for Unorganised Workers had recommended legislation for the social security for unorganised workers. Countries across the world, including India, need to move towards formalisation of labour and generation of at least 600 million new quality jobs in the next 15 years to fulfil Sustainable Development Goals set by the United Nations by 2030.
Informalization of jobs in India:-
- Studies show that employees tend to be significantly more productive in formal employment when compared to informal employment. Also, the quantum of value added by a person in a formal job is almost double that of a person in an informal job.
- Informal workers also work under worse working conditions with little job security, no perks or protections and with low wages. The protections guaranteed to workers under different legislations are not complied with by the informal sector, and they also escape the purview of the authorities.
- A large informal sector also impacts the government in terms of revenue foregone because the units operating in the informal sector stay out of the government’s fiscal revenue net (This leads to low tax GDP ratio). Hence, the informal sector is detrimental to the interests of the working population, the government and in the long run, even to the employer.
Pradhan Mantri Rojgar Protsahan Yojana:
- In order to encourage formalisation of existing companies, as also to create new jobs in the formal sector, the government came up with the Pradhan Mantri Rojgar Protsahn Yojana (PMRPY).
- Under this Government of India will now be paying the complete employer share of 12%. Earlier, only 8.33% of the employer shares were borne by the Government of India.
- The Pradhan Mantri Rojgar Protsahan Yojana(PMRPY) Plan Scheme has been designed to incentivise employers for generation of new employment, where Government of India will be paying the full employer’s contribution towards EPF & EPS both w.e.f April 2018 (earlier benefit was applicable for employer’s contribution towards EPS only) for the new employment.
- All new employees enrolled on or after.2016 and under wage ceiling of Rs.15000 are eligible to avail the benefits of this scheme.
Benefits:
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- This scheme has a dual benefit where on the one hand the employer is incentivised for increasing the employment base of workers in the establishment, and on the other hand, a large number of workers will find jobs in such establishments.
- A direct benefit is that these workers will have access to social security benefits of the organized sector
- Also, the burden on the part of employers has further reduced as he need not remit even 3.67% of employer share as per earlier norms.
- Over one lakh units are covered by this scheme today and have around 85 lakh employees.
- The scheme helped create more formal employment by lowering the monthly imposts on employees
- While these jobs aren’t necessarily new ones since even existing firms may have used the PMRPY to shift workers to formal contracts, it is a very sensible and low-cost way to encourage formalisation.
MOJO0101D00A20979010
The benefits discussed under the heading of the scheme need more content.
Remember, the questions are of 15 marks and hence your treatment of the answers should entail the required depth.
All the points in a subheading should be not less than 6 ideally.
The 1st part of the answer could have been better if you would have discussed the present status of informal jobs in India.
Therefore, highlight the findings of the Arjun Sengupta committee which highlighted the level of informalization of workforce in Indian economy.
The overall answer lacks depth and needs more content.
Read the model answer for more talking points.
Your language is good but could be made more crisp with shorter statements.
Good and clear presentation
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Avoid subheadings in intro and conclusion.
Your structure needs to be better in order to present a better answer.
In the start of the main body, discuss the problems faced as a result of informalization of workforce
Explain about PMRPY in a separate subheading.
Thereafter, discuss the positive impact of this scheme in another separate subheading. Your content in the main body will remain the same but it will be divided into two subheadings: Provisions of the scheme and Positive impact.
In the last part of the main body, suggest ways of improvement.
Then write the conclusion.
This will be the ideal structure.
Your language is good but could be made more crisp with shorter statements.
Read the model answer for missing talking points in the 1st part of the answer
MOJO9c30X00D35455509
A very good intro.
The overall treatment of the topic is done in a good manner.
The only issue with the answer that it did not discuss a concrete way forward in the ended.
In the end, suggest ways of improvement and what more needs to be done in order to get more formal employments in the economy.
The rest of the answer is well-drafted and well discussed.
The content is decent.
The discussion in the flowchart in the 1st part is decent.
But do give a brief account of informalization of jobs in India in the same part.
MOJO9930Q00N64198657
Apart from a missing conclusion, the overall answer is quite decent.
The 1st part of the answer is dealt with nicely.
Good use of the diagram to explain the issues with the informalization of the jobs.
It is good that you discussed the details of the scheme in a holistic manner. This gives balance to your explanation and structure.
Very good discussion in the 2nd part of the answer.
Perfect way forward.
The language is apt and the content is well explained.
Very good presentation.
Always write a conclusion
MOJO9c26500A04493668
The 1st part of the answer could have been better if you would have discussed the present status of informal jobs in India.
Therefore, highlight the findings of the Arjun Sengupta committee which highlighted the level of informalization of workforce in Indian economy.
Your statements are too lengthy and hence they lose shine after a certain point. Write small statements.
Avoid paragraph styled discussion. Use bullet points under relevant subheadings.
Whatever you have discussed in the details of the scheme should be discussed in bullet points.
The discussion done in the main body is very good and detailed.
The overall content in the main point is informative and you have covered almost all the elements.
No need to discuss the positive impact separately if you have discussed the advantages. Write points of positive impact under advantage only.
The way forward is very good.
Read the model answer for the 1st part of the answer
MOJO0101500D20984167
Perfect discussion.
Your treatment of the question is very good.
The discussion entailing the various aspects of the informalization and thereafter the PMRPY is nice.
The structure is well placed.
It is good that you discussed the reasons for the informalization. It is giving the perfect balance to your content.
Good and detailed discussion on the scheme.
The coherency with each preceding discussion is decent in the answer.
It is because of the detailed structure and presentation
A very good language
MOJO0102A00A52642901
The discussion done in the main body is very good and detailed.
The overall content in the main point is informative and you have covered almost all the elements.
But do not start the answer or the topic right away.
The 1st part of the answer could have been better if you would have discussed the present status of informal jobs in India.
Therefore, highlight the findings of the Arjun Sengupta committee which highlighted the level of informalization of workforce in Indian economy.
Work on your presentation. Make it clear and underline important parts of the answer.
Highlight your subheadings more prominently. They should not disappear in the content.
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