The Ministry of Labour & Employment in India has recently reported that over 28 crore unorganised workers are registered on the e-Shram Portal, highlighting the prevalence of the informal economy in the country. With this growing sector, the government has been actively working on formulating Social Security Schemes (SSS) specifically designed for unorganised workers.
Social Security Agreements (SSAs) in Action
India is currently in negotiations with the United States and the United Kingdom regarding Social Security Agreements (SSAs). These SSAs aim to avoid duplicating social security schemes and protect the interests of cross-border workers from India and the partner country. Employees working in SSA countries are typically exempt from making social security contributions in the host country for a given period, contingent upon them continuing to contribute to their home country’s social security fund. Currently, India has SSAs with several countries including Belgium, Germany, Switzerland, France, Denmark, among others.
Understanding the Concept of Social Security
Defined by the International Labour Organisation (ILO), Social Security is a comprehensive approach designed to prevent deprivation and provide assurance of a basic minimum income to individuals. It aims to protect individuals from uncertainties and includes aspects like right to a Standard of Living adequate for health and well-being, and right to Income Security during unemployment, sickness, disability, and other such situations.
The Necessity of Social Security Measures
With a majority of Indian labour force in the informal sector, the need for social security measures cannot be overstated. The Covid-19 pandemic has hit the informal workers the hardest, ranging from rural to urban areas, attributed to the seasonality of their employment and lack of a formal employee-employer relationship. Notably, less than half of these informal sector workers have access to any form of risk protection such as health insurance and pensions.
Current Status of Informal Workers in India
The statistical data pertaining to informal workers in India reveal an alarming state. The registered informal sector workers earning a monthly income of Rs 10,000 or less account for over 94% of the total 27.69 crore workers recorded on the e-Shram portal, majority of them belonging to Scheduled Castes (SC), Scheduled Tribes (ST) and Other Backward Classes (OBC).
Related Initiatives for Unorganised Workers
Several initiatives have been launched by the government aimed at providing security to these unorganised workers. These include the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offering life insurance, Pradhan Mantri Suraksha Bima Yojana (PMSBY) providing accidental insurance, Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) providing health insurance, Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) ensuring pension, Atal Pension Yojana offering universal social security, National Social Assistance Programme (NSAP) increasing pensions for the elderly poor, and Garib Kalyan Rojgar Abhiyaan providing employment opportunities amidst Covid-19 lockdown.
The Way Forward
While these measures certainly provide some relief, there remains a crucial need to standardise minimum provisions for unorganised workers akin to those made for formal sector workers. The Statistics and Programme Implementation Ministry must collaborate with the Labour Ministry to expedite the completion of the Periodic Labour Force Survey (PLFS). It is equally pressing to devise a comprehensive plan addressing the worsening job market situation exacerbated by the pandemic. This includes the creation of a national database for unorganised workers, formalisation of the sector, strengthening existing livelihoods, and fortifying social security measures to lessen the impact of Covid-19.
