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| Edited By: Sangeeta Pranvendra |Source: DNA webdesk |Updated: Jan 07, 2018, 11:12 PM IST
Small unorganized businesses have been facing heat post the introduction of Goods and Service Tax (GST) and the ban of old Rs 500 and Rs 1,000 notes. Now, an additional problem has risen as they are unable to pay their staff monthly salaries.
Daily wage labourers want to be paid in cash. They refuse have money put in bank accounts, as it requires an Aadhaar card. Labourers receive a lot of benefits as they fall under below poverty line (BPL). BPL benefits include subsidies in foodgrains and free health care. If their salaries are deposited into their account, they will lose BPL status.
A BPL household is one where income is less than Rs 2,250 per month. This comes to about Rs 27,000 per year. The figure itself shows how unrealistic the data of BPL families is.
Most daily wage labourers make Rs 9,000 per month, which comes to Rs 1,08,000 per annum, which falls nowhere near the BPL.
It’s a catch 22 situation. While the workers continue to work and draw salaries in cash, the employer is in a predicament because of the new rules pertaining to GST and demonetization.
This issue needs to be seriously considered as it is not just a petty issue about paying salaries. Delve deeper and this could be a parameter of the country’s fiscal health. It could completely change the BPL data.
With time both the employers and his employees are sure to find an amicable way out that will ensure that the country’s BPL numbers do not go down. But till then the deadlock continues.
