Social Security Programmes

In welfare economics, social security is a critical fiscal mechanism used by the state to mitigate economic vulnerabilities, smooth consumption, and shield citizens against life-cycle risks such as old age, disability, unemployment, and the death of a primary breadwinner. Within the Indian Economy, social security interventions under Social Sector Schemes are categorized into unorganized sector targeted assistance, statutory institutional frameworks for organized workers, and non-contributory direct safety nets. These schemes are essential for achieving Sustainable Development Goal (SDG) 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).

Constitutional and Legislative Mandate

The provisioning of social security in India is guided by distinct constitutional directives and legislative mandates:

• Article 41: Dictates that the State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education, and to public assistance in cases of unemployment, old age, sickness, and disablement.
• Article 42: Mandates the State to make provision for securing just and humane conditions of work and for maternity relief.
• Seventh Schedule: Social Security and insurance, employment, and unemployment are listed under Item 23 and Item 24 of the Concurrent List, empowering both the Central and State Governments to legislate.
• Code on Social Security, 2020: Amalgamated nine central labor laws into a single code to extend social security to all employees and workers in both organized and unorganized sectors, including gig and platform workers.

Universal Insurance and Pension Safety Nets (Jan Suraksha Schemes)

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

An accident insurance scheme launched to provide affordable insurance coverage against accidental death and disability.

• Eligibility: Individuals aged 18 to 70 years holding a savings bank or post office account with an auto-debit consent.
• Premium Structure: INR 20 per annum per member, auto-debited from the subscriber’s account.
• Risk Coverage: INR 2 lakh for accidental death or total irrecoverable loss of both eyes or hands/feet; INR 1 lakh for total irrecoverable loss of one eye or one hand/foot.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

A term life insurance scheme offering affordable life insurance cover for death due to any reason.

• Eligibility: Individuals aged 18 to 50 years holding a savings bank or post office account. Risk cover continues up to 55 years subject to regular premium payments.
• Premium Structure: INR 436 per annum per member, auto-debited from the subscriber’s account.
• Risk Coverage: INR 2 lakh in case of death of the subscriber due to any reason.

Atal Pension Yojana (APY)

A flagship contributory pension scheme primarily targeting workers in the unorganized sector to ensure post-retirement income security.

• Eligibility: Any Indian citizen aged between 18 and 40 years holding a savings bank account. Income tax payers are excluded from joining the scheme.
• Pension Tier: Provides a guaranteed minimum pension ranging from INR 1,000 to INR 5,000 per month after reaching 60 years of age, depending on the volume and duration of contribution.
• Spousal Security: In the event of the subscriber’s demise, the pension is paid to the spouse, and after the death of both, the accumulated pension corpus is returned to the nominee.

Unorganized and Gig Sector Social Protection

Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM)

A voluntary and contributory central sector pension scheme designed for old age protection of unorganized workers.

• Target Group: Home-based workers, street vendors, mid-day meal workers, head loaders, brick kiln workers, ragpickers, domestic workers, and similar occupations.
• Eligibility: Entry age of 18 to 40 years, monthly income of INR 15,000 or less. The applicant must not be covered under EPFO, ESIC, or NPS (Govt. funded), and must not be an income taxpayer.
• Contribution Matrix: A 50:50 matching contribution basis where a age-specific contribution is made by the beneficiary and an equal amount is matched by the Central Government. It guarantees a minimum assured pension of INR 3,000 per month after attaining 60 years.

e-Shram Portal

A comprehensive national database created to facilitate optimum delivery of social security benefits to unorganized workers.

• Core Function: Registers unorganized workers, including migrant workers, gig workers, and platform workers, assigning each a unique 12-digit Universal Account Number (UAN).
• Integration Capacity: Connects with the National Career Service (NCS), Skill India Digital, and Pradhan Mantri Shram Yogi Maan-dhan portals to ensure single-window verification and entitlement transfers.

Non-Contributory National Welfare Framework

National Social Assistance Programme (NSAP)

A centrally sponsored scheme that represents a significant step toward the fulfillment of the Directive Principles in Article 41. It provides financial assistance to vulnerable households through distinct sub-schemes.

• Indira Gandhi National Old Age Pension Scheme (IGNOAPS): Monthly pension for BPL persons aged 60–79 years receives INR 200 per month, and those aged 80 years and above receive INR 500 per month.
• Indira Gandhi National Widow Pension Scheme (IGNWPS): Monthly pension of INR 300 for BPL widows in the age group of 40–79 years.
• Indira Gandhi National Disability Pension Scheme (IGNDPS): Monthly pension of INR 300 for BPL persons aged 18–79 years with severe or multiple disabilities (80% or higher disability degree).
• National Family Benefit Scheme (NFBS): A lump-sum grant of INR 20,000 is provided to a BPL household upon the death of the primary breadwinner (aged 18–59 years).
• Annapurna Scheme: Provides 10 kg of free foodgrains per month to senior citizens who, though eligible, have remained uncovered under the IGNOAPS.

Institutional Organized Sector Framework

Employees’ Provident Fund Organisation (EPFO)

Administers mandatory institutional social security plans under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.

• Employees’ Provident Fund (EPF) Scheme: Contributory accumulation system for retirement savings shared between employee and employer.
• Employees’ Pension Scheme (EPS): Provides post-retirement pension, widow pension, and orphan pension benefits to organized sector employees.
• Employees’ Deposit Linked Insurance (EDLI) Scheme: Provides an assurance benefit (up to INR 7 lakh) to the legal heir of an employee in the event of death while in service.

Employees’ State Insurance Corporation (ESIC)

A multidimensional statutory social security system providing comprehensive socio-medical protection for organized labor.

• Legal Coverage: Governed by the Employees’ State Insurance Act, 1948, applying to factories and established classes of employment employing 10 or more persons.
• Entitlements: Direct access to medical care for workers and dependents, alongside cash benefits during periods of sickness, maternity, temporary or permanent disablement, and unemployment allowance via the Rajiv Gandhi Shramik Kalyan Yojana.

Trivia and Prelims-Specific Facts

• The First Social Security Legislation passed in independent India was the Employees’ State Insurance (ESI) Act of 1948, which predated the formal adoption of the Constitution.
• The Code on Social Security, 2020 legally defined “Gig Workers” and “Platform Workers” for the first time in Indian legislative history, mandating the establishment of a dedicated Social Security Fund for them.
• The National Social Assistance Programme (NSAP) was launched on Independence Day, August 15, 1995, and was initially placed under the Ministry of Welfare before being transferred to the Ministry of Rural Development.
• The Pension Fund Regulatory and Development Authority (PFRDA) is the statutory regulatory body governing the Atal Pension Yojana and the National Pension System (NPS), operating under the jurisdiction of the Ministry of Finance.