Last Updated:
New Labor Code: New labor law has come into force in the country. Since then, discussions are being held regarding the profit and loss, but now SBI has said in its research that this law can increase the consumption in the country by up to Rs 75 thousand crore.
New Delhi. The government has implemented the new labor law and most organizations have called it a beneficial step for the employees. Now the country’s largest government bank SBI has put forward the complete calculations of the real benefits of this law. SBI economists have said that everyone will benefit from this new law. The bank said in its research report that this law will not only benefit the companies and employees, it will also reach the common citizens of the country.
Economists of State Bank of India said that with the implementation of new labor codes, consumption in the country will increase by Rs 75,000 crore. Besides, this step will also increase the number of people working in the organized sector by at least 15 percent. He said that with these codes implemented from November 21, 85 percent people will start getting social security in the next three years and the unemployment rate will reduce to 1.3 percent in the medium term.
Every person’s daily expenses will increase
SBI economists said in a report that after the implementation of the new labor law, considering the savings rate of about 30 percent, the daily additional consumption of each person will increase to Rs 66. This will increase overall consumption by about Rs 75,000 crore. The four labor codes will empower workers as well as companies and create a workforce that is safe, productive and in line with today’s needs.
Crores will get social security
SBI said in its report that the new labor law will also increase social security. Currently, about 44 crore people work in the unorganized sector, out of which about 31 crore workers are registered on the e-Shram portal. If even 20 percent of these people move from informal wages to the organized wage system, then about 10 crore people will benefit. If this happens, social security coverage will reach 80-85 percent in the next two-three years. This will be a big step in terms of social security.
Employment will also get a boost
According to SBI report, the new labor law will also be very helpful in increasing organized employment. This law can increase the rate of formal employment by up to 15.1 percent. The reduction in unemployment rate will depend on the implementation of reforms, adjustment expenses of companies and supplementary rules of the states. However, according to an estimate the unemployment rate may also decline by 1.5 percent. Obviously the new labor law is going to prove helpful in many ways.
