Indian government gives incentives for employers to hire disabled people

From Daily News & Analysis in India Nov. 7:

NEW DELHI -- The government has decided to provide incentives to private sector employers if they hire disabled persons. The ministry of social justice and empowerment (MSJ&E) has approved a scheme under which the government will pay the employer’s contribution to the Employees Provident Fund (EPF) and Employees State Insurance (ESI) for three years, provided they hire at least 5% of persons with disabilities.

Employees with disabilities covered under the Persons with Disabilities (Equal Opportunities, Protection of Rights and full Participation) Act, 1995, and the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999, and working in the private sector with monthly wage up to Rs 25,000 per month would be covered under the scheme, which will be applicable to those appointed from April 1, 2008.

The decision is in line with the finance minister’s promise in his Budget speech where he announced a scheme for employment of physically challenged in the organised sector.

Section 41 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and full Participation) Act, 1995, provides for incentives to employers to ensure that at least 5% of their work force was composed of persons with disabilities. The National Policy for Persons with Disabilities also lays down that pro-active measures will be taken to provide incentives, awards, tax exemptions to encourage employment of persons with disabilities in the private sector.

The government has earmarked a total outlay of Rs1800 crore for the 11th Five Year Plan to create about one lakh jobs for disabled person each year in the private sector. The employers would need to submit a copy of the disability certificate issued to the employee by the competent authority when such benefit under EPF and ESI are claimed.

The MSJ&E would provide lump sum funds to the Employees Provident Fund Organization and Employees State Insurance Corporation to facilitate the scheme. These funds would be used for the adjustment of individual claims received from the employers under the scheme. A high level committee co-chaired by the ministries of labour and employment and social justice and empowerment will be constituted to monitor the implementation of the scheme.