The article “Taken for a ride” (August 5) lacked balance and was poorly researched. For instance, the discrepancy between what contract workers say they earn and what companies claim they pay can be easily explained. With five to 10 per cent going to the service provider’s service charges and deductions being made on account of provident fund (PF) and employees state insurance, the gap between the take-home pay and the cost to company (CTC) is huge. And the most significant “cut” is taken by the government! The government has imposed a 12 per cent service tax — which accounts for the single largest gap between the take-home pay and CTC. In fact, the article should have made a case for scrapping the service tax on contract labour services. With the service tax scrapped, contract workers will certainly benefit since companies will pass on part of the savings to contract labour wages.
Moreover, it’s incorrect to say contract workers do not get benefits such as PF. In fact, PF deductions are one of the reasons the article cites for the huge gap between the take-home wage and the CTC claimed by companies.
Also, why does the article create the impression that a salary of Rs 7,500 a month is “low”? All wages are governed by the Minimum Wages Act. Indeed, the cost of living has gone up substantially. But why blame companies when the government is responsible for high inflation.
Finally, why is it that workers have to “send money home” after fending for themselves? Why has the government not created adequate job opportunities close to the home-towns of contract workers? Why should workers stay away from their villages to work? On all these issues, it is better to take the government to task, and not create an impression that companies are treating their employees unfairly.
Charanjiv Singh New Delhi
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