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Labour Policy

Labour codes
1.

Needs for consolidation

 As labour is in the concurrent list, there was an entire gamut of 200+ state and 40+ central
laws with often colluding jurisdictions.
 The multiplicity, rigidity, and overlapping nature of laws also makes compliance difficult
which leads to inspector raj like conditions even now. This leads to corruption, exploitation
of workers, etc
 The above situation also hampers the ease of doing business in India.
 India has a huge informal sector, with almost 90% workforce engaged in it. The labour laws
largely ignore the sector.
 The companies have an incentive in keeping their firm small as larger firms attract stricter
regulations.
 The contract employment always generates aversion from labours. There is a need to
introduce fixed-term employment.
 The female labour force participation is very low and it is mainly engaged in the informal
sector and low-paid jobs.
 The collective bargaining of the employees is weak. It needs to be strengthened.
 The codification of labour laws was recommended by the 2nd National commission on
labour (2002).
The Labour Code is the Central Government's initiative to tackle following existing
lacunae:
 Almost 90% of the current workers are not covered under any social security.
 Unorganized sector workers are largely excluded.
 Prevailing schemes have very limited outreach.
 Multiplicity of applicable laws, policies, schemes and governmental instrumentalities;
 Current thresholds for wage and number of workers employed for a labour law to become
applicable creates tenacious incentives for the employers to avoid joining the system which
results in exclusions and distortions in the labour market.
The Code finds its genesis in the Report of the Second National Commission on Labour
(2002) and many other subsequent studies and reports on social security policies
including UN SDGs of the 2030 Sustainable Development Goals Agenda along with expert
technical assistance from the International Labour Organization on the policy
framework.

Four new codes basic

As per the recommendations of the 2nd National Commission on Labour, Ministry has taken
steps for codification of existing Central labour laws into 4 Codes by simplifying, amalgamating
and rationalizing the relevant provisions of the Central Labour laws. At present, the Ministry has
been working on to simplify, amalgamate & rationalize the provisions of the existing Central
labour laws into 4 Labour Codes.

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 The Code on Wages 2019
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The laws that are codified under the code on wages are
1. Payment of Wages Act, 1936;
2. Minimum Wages Act, 1948;
3. Payment of Bonus Act, 1965;
4. Equal Remuneration Act, 1976

 Coverage: The Code will apply to all employees. The central government will make
wage-related decisions for employments such as railways, mines, and oil fields,
among others. State governments will make decisions for all other employments.
Wages include salary, allowance, or any other component expressed in monetary
terms. This does not include bonus payable to employees or any travelling
allowance, among others.
 Floor wage: The central government will fix a floor wage, taking into account living
standards of workers. Further, it may set different floor wages for different
geographical areas. Before fixing the floor wage, the central government may
obtain the advice of the Central Advisory Board and may consult with state
governments.

The minimum wages decided by the central or state governments must be

higher than the floor wage. In case the existing minimum wages fixed by the
central or state governments are higher than the floor wage, they cannot
reduce the minimum wages.

 Fixing the minimum wage: The Code prohibits employers from paying wages less
than the minimum wages. Minimum wages will be notified by the central or state
governments. This will be based on time, or number of pieces produced. The
minimum wages will be revised and reviewed by the central or state governments
at an interval of not more than five years. While fixing minimum wages, the
central or state governments may take into account factors such as:

o Skill of workers,
o Difficulty of work.

 Overtime: The central or state government may fix the number of hours that
constitute a normal working day. In case employees work in excess of a normal
working day, they will be entitled to overtime wage, which must be at least twice
the normal rate of wages.
 Payment of wages: Wages will be paid in (i) coins, (ii) currency notes, (iii) by
cheque, (iv) by crediting to the bank account, or (v) through electronic mode. The
wage period will be fixed by the employer as either: (i) daily, (ii) weekly, (iii)
fortnightly, or (iv) monthly.
 Deductions: an employee’s wages may be deducted on certain grounds including:
(i) fines, (ii) absence from duty, (iii) accommodation given by the employer, or (iv)
recovery of advances given to the employee, among others. These deductions
should not exceed 50% of the employee’s total wage.
 Determination of bonus: All employees whose wages do not exceed a specific
monthly amount, notified by the central or state government, will be entitled to an
annual bonus. The bonus will be at least: (i) 8.33% of his wages, or (ii) Rs 100,
whichever is higher. In addition, the employer will distribute a part of the gross
profits amongst the employees. This will be distributed in proportion to the
annual wages of an employee. An employee can receive a maximum bonus of 20%
of his annual wages.
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 Gender discrimination: The Code prohibits gender discrimination in matters
related to wages and recruitment of employees for the same work or work of
similar nature. Work of similar nature is defined as work for which the skill,
effort, experience, and responsibility required are the same.
 Advisory boards: The central and state governments will constitute advisory
boards. The Central Advisory Board will consist of: (i) employers, (ii) employees (in
equal number as employers), (iii) independent persons, and (iv) five representatives
of state governments. State Advisory Boards will consist of employers, employees,
and independent persons. Further, one-third of the total members on both the
central and state Boards will be women. The Boards will advise the respective
governments on various issues including: (i) fixation of minimum wages, and (ii)
increasing employment opportunities for women.
 Offences: The Code specifies penalties for offences committed by an employer,
such as (i) paying less than the due wages, or (ii) for contravening any provision of
the Code. Penalties vary depending on the nature of offence, with the maximum
penalty being imprisonment for three months along with a fine of up to one lakh
rupees.

Occupational Safety, Health and Working Conditions Code Bill, 2020

This is the first single legislation prescribing standards for working conditions, health,
and safety of the workers.

It will subsume the following Act

1. The Factories Act, 1948;

2. The Mines Act, 1952;
3. The Dock Workers (Safety, Health and Welfare) Act, 1986 ;
4. The Building and Other Construction Workers (Regulation of Employment and
Conditions of Service) Act, 1996 -,
5. The Plantations Labour Act, 1951;
6. The Contract Labour (Regulation and Abolition) Act, 1970;
7. The Inter-State Migrant workmen (Regulation of Employment and Conditions of
Service) Act, 1979;
8. The Working Journalist and other News Paper Employees (Conditions of Service
and Misc. Provision) Act, 1955;
9. The Working Journalist (Fixation of rates of wages) Act, 1958;
10. The Motor Transport Workers Act, 1961;
11. Sales Promotion Employees (Condition of Service) Act, 1976;
12. The Beedi and Cigar Workers (Conditions of Employment)Act,1966
13. The Cine Workers and Cinema Theatre Workers Act, 1981.

Key feature

 The Code expands the definition of a factory as a premise where at least 20

workers work for a process with power and 40 workers for a process without
power.
 The Code removes the manpower limit on hazardous working conditions and
makes the application of the Code obligatory for contractors recruiting 50 or more
workers (earlier it was 20).
 The Code fixes the daily work hour limit to a maximum of eight hours.
 The Code empowers women to be employed in all kinds of establishments and at
night (between 7 PM and 6 AM) subject to their consent and safety.

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 To encourage formalisation in employment, the employer is required to issue an
appointment letter.
 The Code defines an inter-state migrant worker as someone who has come on
his/her own from one state and received employment in another state and earns
up to Rs.18000 per month.
 Portability benefits for inter-state migrant workers: They can avail benefits in the
destination state as regards ration and benefits of building and other construction
worker cess.
 However, the Code has dropped the earlier provision for temporary
accommodation for workers near worksites.
 The Code also proposes a Journey Allowance – this is a lump sum fare amount to
be paid by the employer for the journey of the worker from his/her native state to
the place of employment

The Code on social security

It strives to amend and consolidate the laws relating to the social security of the employees and
the matters connected to social security.
It codifies 9 laws including
1. The Employees’ Compensation Act, 1923.
2. The Maternity Benefit Act, 1961.
3. The Payment of Gratuity Act, 1972.
4. The Unorganized Workers’ Social Security Act, 2008.
5. Employees’ State Insurance Act, 1948.
6. Employees ‘Provident Fund and Miscellaneous Provisions Act, 1952.
7. The Cine Workers Welfare Fund Act, 1981.
8. The Building and Other Construction Workers Cess Act, 1996.
9. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959.
Key feature and changes
Enhanced Coverage: it has included the unorganised sector, fixed term employees and gig
workers, platform workers, inter-state migrant workers etc.
National Database and Registration: With the aim of making a national database for
unorganised sector workers, registration of all these workers would be done on an online portal
and this registration would be done on the basis of Self certification through a simple procedure.
All records and returns have to be maintained electronically.
Uniform definitions: Uniformity in determining wages for the purpose of social security benefits
is another highlight of the code given the ambiguity in the current regulations. This has provided
a wide definition for wage. Specific exclusions with ceilings have been provided for discouraging
inappropriate structuring of salaries to minimise social security benefits.
Social Security Fund:
Consultative Approach: It has brought in a facilitating approach by the authorities. Unlike the
existing role of inspectors, the Code provides for an enhanced role of inspector-cum-facilitator
whereby employers can look for support and advice to enhance compliances.
Career Centre: To enable that demand for human resources is met and to monitor employment
information, career centres will be established.
Fixed-term employees: The code expands the scope to cover fixed-term contract workers who
will now be eligible for gratuity; whereas earlier only employees that were permanent were
covered.

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The events giving rise to gratuity are superannuation, retirement, resignation, death or
disablement due to accident or disease or termination of a contract under fixed-term
employment or on the happening of any event notified by the central government.
With the inclusion of ‘expiration of fixed-term employment’, fixed-term contract workers will
become eligible for gratuity and this is a welcome move.
Penalties: The strength of implementing a legislation lies in the ease of compliances as well as in
the penalties that deter non-compliance. The Code captures it all.
The Code contains penal provisions in the case of failure to pay gratuity to employees or a failure
to pay the contributions.

Industrial relation code

It attempts to offer some degree of flexibility on government permissions for retrenchment and
presents the legal framework for ushering in the concept of ‘fixed-term employment’ through
contract workers on a pan-India basis.
It has replaced the following laws
The Trade Union Act, 1926;
The Industrial Employment (Standing Orders) Act, 1946;
The Industrial Disputes Act, 1947.
Fixed term employment, permanent employment and contract labour
The Code introduces provisions on fixed term employment. Fixed term employment refers to
workers employed for a fixed duration based on a contract signed between the worker and the
employer.
Standing Orders
Applicability of standing orders: The Code provides that all industrial establishment with 300
workers or more must prepare standing orders on the listed matters.
Prior permission of the government: Under the Code, an establishment having at least 300
workers was required to seek prior permission of the government before closure, lay-off, or
retrenchment.
Powers to the central government to revise the threshold: The Code empowers the
government to increase (but not decrease) the threshold for the establishments to seek prior
permission before closure, lay-off or retrenchment.
Negotiating Union and Council
Sole Negotiating Union: If there are more than one registered trade union of workers
functioning in an establishment, the trade union having more than 51% of the workers as
members would be recognised as the sole negotiating union.
Negotiation Council: In case no trade union is eligible as sole negotiating union, a negotiating
council will be formed consisting of representatives of unions that have at least 20% of the
workers as members.
Disputes relating to termination of individual worker: The 2020 Bill classifies any dispute in
relation to discharge, dismissal, retrenchment, or otherwise termination of the services of an
individual worker to be an industrial dispute.
The worker may apply to the Industrial Tribunal for adjudication of the dispute. The worker may
apply to the Tribunal 45 days after the application for the conciliation of the dispute was made.
Strikes and Lockouts
 The Code also introduces new conditions for conducting a legal strike.
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 Employees are prohibited from going on strike without giving a 60-day notice.
Tribunals
 The Code provides for the constitution of Industrial Tribunals and a National Industrial
Tribunal to decide industrial disputes.
 The awards passed by a Tribunal will be enforceable on the expiry of 30 days.
 However, the government can defer the enforcement of the award in certain circumstances
on public grounds affecting national economy or social justice.
 The appropriate government can also make an order rejecting or modifying the award.
Re skilling of worker: The new Code also proposes the setting up of a re-skilling fund for
training retrenched workers with contribution from the employer, of an amount equal to 15 days
last drawn by the worker.

Employees’ State Insurance Scheme:

Employees’ State Insurance Scheme of India is a multi-dimensional Social Security
Scheme tailored to provide Socio-economic protection to the 'employees' in the organized
sector against the events of sickness, maternity, disablement and death due to
employment injury and to provide medical care to the insured employees and their
families.
Objective To provide protection to employees as defined in Employees' State
Insurance Act, 1948 against sickness, disablement, death due to
employment injury, maternity benefit, and to provide medical care to
insured persons and their families.
Administered The ESI Scheme is administered by a statutory corporate body called
by the Employees' State Insurance Corporation (ESIC), which has
members representing Employers, Employees, the Central
Government, State Government, Medical Profession and the Hon’ble
Members of Parliament. Director General is the Chief Executive
Officer of the Corporation and is also an ex-officio member of
the Corporation.
Funding The ESI scheme is a self-financing scheme. The ESI funds are
primarily built out of contribution from employers and employees
payable monthly at a fixed percentage of wages paid. The State
Governments also bear 1/8th share of the cost of Medical Benefit.
Applicability The ESI Act, 1948, applies to organisations with 10 or more
employees, drawing a salary of up to ₹21,000.

(Rs. 25000 per month for persons with disability)

Not applicable It is not applicable for seasonal factories, factories engaged in the
pursuit of blending, packing or repacking tea or coffee or any other
processes as notified by the Central Government.

Contribution  The rate of contribution is fixed at 4% of the wages with

employers’ share being 3.25% and employees’ share being 0.75%.
 The Government of India through Ministry of Labour and

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Employment decides the rate of contribution under the ESI Act

Benefits

Medical Benefit - Full medical care to the insured person and his family members with
no ceiling on expenditure of the treatment.
Sickness Benefit - In the form of cash compensation at the rate of 70 per cent of wages.
Maternity Benefit - For confinement/pregnancy is payable for 26 weeks, which is
extendable by further one month on medical advice.
Disablement Benefit -
o Temporary disablement benefit (TDB): 90% of wage is payable so long as the
disability continues.
o Permanent disablement benefit (PDB): 90% of wage in the form of monthly
payments
Dependants Benefit - Paid in the form of monthly payment to the dependants in cases
where death is due to employment injury or occupational hazards.
Other Benefits
o Funeral Expenses
o Confinement Expenses
o Vocational Rehabilitation
o Physical Rehabilitation
o Old Age Medical Care.

THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952

 The Act is managed under the aegis of Employees’ Provident Fund Organization
(EPFO).
 The Act extends to the whole of India, including two Union Territories, Jammu &
Kashmir and Ladakh. The Act is currently applicable:
o to every establishment, which is a factory engaged in any industry specified
in Schedule-I of the Act in which twenty or more persons are employed;
and
 In case of Cine-Workers, the required employee strength for the purpose of
coverage under the Act is five.
 However, the provisions of the 1952 Act do not apply to certain excluded
establishments, such as registered cooperative societies with less than 50 workers.
 the provisions of the 1952 Act do not apply to any other establishment belonging
to or under the control of the Central Government or a State Government whose
employees are entitled to the benefit of contributory provident fund or old age
pension

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EMPLOYEES’ PROVIDENT FUNDS SCHEME, 1952:

Launched 1st November 1952 by the EPFO

Scheme It is a statutory benefit available to the employees post retirement or
when they leave the services. In case of deceased employees, their
dependents are entitled for the benefits.

Eligibility  The Scheme mandates coverage of all establishments under its

scheduled list of establishments/ factories, employing 20 or
more persons.
 The Scheme mandates coverage of all establishments under its
scheduled list of establishments/ factories, employing 20 or
more persons, wherein, employees earning monthly wages
equal to or less than Rs. 15,000/- (Basic + Dearness
Allowances) have to be mandatorily covered.
Contribution Contribution: Member’s contribution (12% of EPF wages) and
employer’s contribution the total 12% (3.67% of EPF wages, 8.33% of
share towards EPS) goes towards the EPF account of the member.

Other points:
 When the scheme was launched in 1952, an employee earning upto ceiling of Rs.
300/- per month and who had worked for one year was eligible for membership of
the EPF. Current limit is Rs. 15000 per month and from the date of joining the
factory/ establishment.
 The contributions are payable on maximum wage ceiling of Rs. 15000.
 The employee can pay at a higher rate and in such case employer is not under any
obligation to pay at such higher rate.
 For an International Worker, wage ceiling of 15000 is not applicable.

 The rate of contribution, for both the employer and the employee is 10% of
the wages for certain categories of establishments as given below:
o Any establishment in which less than 20 employees are employed.
o Any sick industrial company and which has been declared as such by the
Board for Industrial and Financial Reconstruction
o Any establishment which has at the end of any financial year, accumulated
losses equal to or exceeding its entire net worth and
o Any establishment in following industries: (a) Jute (b) Beedi (c) Brick (d) Coir
and (e) Guar gum Factories.
 The Act and Schemes framed there under are administered by a tri-partite Board
known as the Central Board of Trustees, Employees’ Provident Fund, consisting
of representatives of Government (Both Central and State), Employers, and
Employees
 The Board operates three schemes – EPF Scheme 1952, Pension Scheme 1995
(EPS) and Insurance Scheme 1976 (EDLI)
 The EPFO is under the administrative control of Ministry of Labour and
Employment, Government of India.

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 Advances under EPF Scheme: Apart from Final Settlement/withdrawal under the
EPF schemes, 1952, the following advances are allowed to the members to meet
their various needs as per the conditions & their eligibility:
o For purchase of plot/flat, construction of House, Repair of house, etc
(Minimum 5 years of service)
o Grant of advances in special cases, like, unemployment, closure of the
establishment, nonreceipt of wages for more than 2 months, etc.
o Grant of advances in case of Illness of self/family
o Advance in case of Natural Calamities. (Covid advance was introduced in
March, 2020)
o Withdrawal within 1 year before retirement.

Recent update:
A non-refundable advance to the extent of the basic wages and dearness allowances for
three months or up to 75% of the amount standing to your credit in the EPF
account, whichever is less from their EPF account to EPF members, employed in factory
or establishment located in an area, which is declared to be affected by outbreak of
epidemic or pandemic by the Appropriate Govt.

Employees’ Pension Scheme

Launched November 19, 1995 by the EPFO

Aim The scheme entitles the employees working in the organised sector
for a pension after their retirement at the age of 58 years.

Eligibility  All employees who are eligible for the EPF scheme are be
eligible for EPS
 The benefits of the EPS can be availed only if the employee has
been in service for at least 10 years (this does not have to be
continuous service).
 The scheme’s benefits are available to both existing as well as
new EPF members.

Contribution The corpus of the Employees’ Pension Fund is made up of (i)

contribution by the employer @ 8.33 per cent of wages; and (ii)
contribution from Central Government through budgetary support @
1.16 per cent of wages, up to an amount of Rs.15,000/- per month.

Benefits
1. Pension on retirement at the age of 58 years.
2. On cessation of employment before completing 58 years a member can opt for
early pension. Such early pension can be availed only after completing 50 years of
age
3. Pension on total disablement during the service: An EPFO member who
becomes disabled permanently is entitled to a monthly pension irrespective of the
fact that he/she has not served the pensionable service period.
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4. Family pension on the death of the member: A member’s family becomes
eligible for the pension benefits in the following cases:
 In case of death of the member while in service and the employer has
deposited funds in his EPS account for at least one month
 In case the member has completed 10 years of service and dies before
attaining 58 years of age )
 In case of death of the member after the commencement of the monthly
pension.
 Children Pension for 2 children at a time till the age of 25 years on death
of the member.
 Orphan Pension to 2 orphans at a time till the age of 25 years on death of
a member when there is no spouse or on death of spouse.
 Disabled Children/Orphan Pension for the entire life of the disabled
child/orphan.
 Nominee Pension on death of member and paid for life to a person duly
nominated by the member.
 Pension to dependent father/mother upon death of a member provided
there is no family or nominee of the member

Revision
The provisions of the EPS-95 are reviewed from time to time based on the
recommendations of the Expert Committee and the High Empowered Monitoring
Committee
Some of the important amendments made in EPS-95 are as under:

 Increase in wage ceiling from Rs. 6500/- to Rs.15000 per month from 01.09.2014.
 Provision of a minimum pension of Rs. 1000 per month to the pensioners under
EPS, 1995 from 01.09.2014 by providing additional budgetary support wherever
the pension was falling short of Rs.1000 as per pre-defined formula for calculation
of pension.
 Restoration of normal pension after completion of fifteen years from the date of
such commutation, in respect of those members who availed the benefit of
commutation of pension under the erstwhile paragraph 12A of the EPS, 1995, on
or before 25.09.2008 vide notification G.S.R.132(E) dated 20.02.2020.
 The Code on Social Security, 2020 (36 of 2020), was notified on 29.09.2020, which
subsumes 9 Central labours laws including the EPF and MP Act, 1952.
 Section 15 of the new Code envisages to frame various schemes including pension
for the employees and their family members.

EMPLOYEES’ DEPOSIT LINKED INSURANCE SCHEME, 1976

Launched 1st August, 1976 by the EPFO

Aim The main objective of EPFO behind this scheme was to ensure that
the family of members get financial assistance in case of death of the
member.

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Eligibility Insurance Scheme is applicable to all factories/establishments to
which the EPF Act 1952 applies. All the employees who are members
of the provident fund are members of this Scheme.
EDLI contribution to be paid even if member has crossed 58 years
age and pension contribution is not payable.
Contribution This Scheme is supported by a nominal contribution (0.5% of wages
or max 75 Rupees) by the employers.
No contribution is payable by the employee for availing the insurance
cover.
Benefits The claim amount under ELDI is: 30 * Average monthly wages drawn
by the employee over the last 12 months preceding the date of death,
subject to a maximum of Rs.15,000.
Maximum assurance benefits enhanced to `7,00,000.
Minimum assurance benefits of `2,50,000.
The minimum and maximum assurance benefits will be payable to
members who were in employment for a continuous period of 12
months preceding the month in which the member died

Scheme Employee Employer

EPF 12% / 10% 3.67%
EPS nil 8.33% (Maximum Rs
1250)
EDLI nil 0.5% (Maximum Rs 75)

Important Labour Laws

S.no Act Feature
1 Maternity This Act entitles maternity leave for pregnant women employees’
Benefits Act, i.e. full payment despite absence from work. The act is applicable
1961 to all establishments employing 10 or more employees.
2 Maternity Increased Paid Maternity Leave: from the existing 12 weeks to 26
Benefit weeks. For women who are having 2 or more surviving children,
(Amendment) the duration of paid maternity leave shall be 12 weeks (i.e. 6 weeks
Act, 2017 before and 6 weeks after expected date of delivery).
 Maternity leave of 12 weeks for adoptive and commissioning
mothers
 Work from Home option
 Makes creche facility mandatory for every establishment
employing >50 employees and allow four visits to the creche
by the woman daily, including the interval for rest allowed
to her;
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 to facilitate "work from home" to a mother by inserting an
enabling provision;
 every establishment shall intimate in writing and
electronically to every woman at the time of her initial
appointment about the benefits available under the Act.
3 Sexual This act prohibits any kind of sexual Harassment of the women
Harassment of workers at the workplace. This Act came into force from 9
Women December 2013
employees at It broadened the Vishaka guidelines, which were already in place
Workplace Act, This act must be implemented by all public or private and
2013: organised or unorganised sectors that have more than 10
employees.
Every employer is required to constitute an Internal Complaints
Committee (ICC) at each office or branch with 10 or more
employees.
The complains has to be completed within 90 days by ICC
Non-compliance with the provisions of the Act shall be punishable
with a fine of up to Rs 50,000 to employer.
The State Government will notify the District Officer in every
district, who will constitute a Local Complaints Committee (LCC) so
as to enable women in the unorganised sector or small
establishments to work in an environment free of sexual
harassment.
4 THE Wage ceiling for calculation of compensation under the Employees'
EMPLOYEES' Compensation Act, 1923 has been revised to Rs. 15,000/- p.m.
COMPENSATION from Rs. 8,000/- p.m. w.e.f. 03.01.2020.
ACT, 1923
8 Child Labour The act prohibits employing children below 14 years of age in any
(Prohibition) Act- jobs except where the child helps after school hours his family in
1986 non-hazardous family business.
The act prohibits employment of adolescents (14-18 years) in
hazardous occupations as specified (mines, inflammable substance
and hazardous processes)
The penalty for employing a child was increased to imprisonment
between 6 months and two years or a fine of Rs 20,000 to Rs
50,000 or both

Universal account number or UAN: The UAN is a 12-digit number allotted to each
Employee Provident Fund member by the Employee Provident Fund Organization(EPFO)
which gives him control of his EPF account and minimizes the role of employer.

Periodic Labour Force Survey (PLFS)

Employment and Unemployment Surveys (EUS) conducted by NSSO were the primary
source of labour market data at National and State level in India. Regular EUS were
conducted quinquennially (after every five years) since 1972. Considering the importance
of availability of labour force data at more frequent intervals, the Ministry of Statistics
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and Programme Implementation constituted a committee on Periodic Labour Force
Survey (PLFS).

Now, National Statistics Office (NSO) is conducting PLFS to produce annual statistics of
employment and unemployment characteristics for both rural and urban areas, along
with quarterly estimates for urban areas. The first annual report based on the data
collected in PLFS during July 2017- June 2018 was published in May 2019.

The PLFS was designed with two major objectives for measurement of employment and
unemployment.

 The first was to measure the dynamics in labour force participation and
employment status in the short time interval of three months for only the urban areas.

 The second was for both rural and urban areas, to measure the labour force
estimates on key parameters on an annual basis such as labour force participation rate,
worker population ratio etc.

The International Labour Organization (ILO) is a United Nations agency

headquartered at Geneva, Switzerland dealing with labour problems,
particularly international labour standards, social protection, and work opportunities for
all. Total 187 members.

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