Staff Reporter

TIRUCHI: Tiruchi District Tiny and Small Scale Industries’ Association (TIDITSSIA) has sought replacement of the Central Government’s recent proposal to bring micro units employing 10 persons and above in the ambit of Provident Fund with a comprehensive legislation for providing social security measures.

Competitiveness of micro units will be impeded in the event of minimisation of the threshold limit to 10 employees from the existing 20 for providing social security benefits, TIDITSSIA apprehends.

Micro-units, as per the proposal, will be brought into the Provident Fund net even if they have only a few employees and the number exceeds 10 only when they provide seasonal employment.

Instead of putting micro-units into the trouble of maintaining accounts in a pattern similar to large industries, the Government could contemplate levying from the small-scale employers a fixed amount on an annual basis. The amount collected thus must be commensurate with the economic health of the units, Association president S. Sridharan suggested in a representation made to the Prime Minister. Once the employers of micro-units produce the receipt of the one-time payment made, they should be spared of the need to subject their units to inspection by the Provident Fund, Mr. Sridharan said, noting that the Government’s ameliorative intervention would provide relief to most of the about 9,000 units in the manufacturing and service sector. Micro industries sector has been deprived of the attention provided to the large-scale industry sector, he said.

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