NEW DELH: As India positions itself as a global economic powerhouse, talent and recruitment agencies have urged government to implement key measures in Budget to drive workforce growth and talent mobility, encourage diversity and close skill gaps.
The suggested measures include announcing tax incentives for employment generation, rationalising GST for staffing services, introducing tax deductions for investments in workforce upskilling, and a policy framework for gig and contract workers. Staffing services are subject to GST of 18%, which increases the cost burden for companies.
“Rationalising GST rates or allowing input tax credit on staffing services can reduce compliance costs and make services more affordable for businesses, encouraging job creation,” an HR expert told TOI.
Viswanath PS, MD & CEO, Randstad India, a talent company said, “By introducing tax incentives for employment generation, rationalising GST for staffing services, and providing welfare provisions for gig workers, we can provide a huge push forward to job creation and employment opportunities.”
For promoting the apprenticeship programme launched last year, the sector has asked for enhanced reimbursement rates for stipends under the National Apprenticeship Promotion Scheme, as well as a simplification of the approval process for hiring interns under govt schemes. Further, it has sought tax deductions for companies that onboard apprentices and transition them to permanent roles, which would support long-term employment and contribute to the development of a skilled workforce.
“Govt must support financially and with tax incentives an upgraded ITI (Industrial Training Institute) curriculum and industry body supported vocational enhancement. Also, implementation of labour codes will need to be time bound to ensure both solid skills and more fair remuneration to contractual employees,” HR veteran Prabir Jha said.
To address gender gap and boost inclusion, the industry has sought introduction of fiscal incentives for companies that promote diversity in hiring, including women returnees, veterans and individuals from economically weaker sections.
