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By NewsGram Staff Writer

New Delhi: Modi government may soon put a cap on the proportion of contract workers that a company or an organization can hire to 40-50%.

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Photo Credit:

The proposal is still in the working state and if finalized, it may help in diluting the opposition of various trade unions to the labor reforms, according to a report in the Economic Times.

The proposal may also stipulate that the wages given to the contract labors hired by the companies should not be less than the government prescribed minimum wages. It may also make it mandatory for companies to absorb the contract workers into permanent positions wherever such a position opens up.

The companies may also be mandated to provide a small annual increment to the contract labors. Further, a substantial increase in their wages once in five years may also be proposed provided that they have improved their skills to match that of regular workers.

Through the proposed changes to the Contract Labour (Regulation & Abolition) Act, the government aims to upgrade the skills of contract labors and help them to gain regular roles.


Photo by Luca Bravo on Unsplash

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