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Only 24.4% Indians Under Social Protection: ILO Report

The recently published World Social Protection Report 2020-22: Regional Companion Report for Asia and the Pacific by the International Labour Organisation (ILO), provides a comprehensive overview of social protection in the region. Drawing attention towards India, the report highlights that only 24.4% of Indians are covered under any form of social security, even less than neighbouring Bangladesh at 28.4%.

Understanding Social Protection

Social protection systems are instrumental in safeguarding individuals and families, particularly those who are impoverished or vulnerable. These schemes assist in mitigating crises, facilitating employment, enhancing productivity, fostering health and education investments, and supporting the elderly population.

Key Findings of the Report

The report, serving as an auxiliary to the ILO’s World Social Protection Report 2021-22, offers a regional synopsis of social protection coverage in Asia and the Pacific. The report reveals stark disparities worldwide, with countries like Mongolia, New Zealand, Singapore, and Australia enjoying complete social protection coverage, while countries like Myanmar and Cambodia show figures below 10%. It points out that lower GDP nations typically have dismal levels of work injury coverage, with Afghanistan, India, Nepal, and Pakistan covering fewer than 5% of their workforce.

The Coverage Gap

According to the ILO report, by 2020, just about 46.9% of the global populace was effectively covered by at least one social protection benefit. Meanwhile, the remaining 53.1%, roughly 4.1 billion people, remained wholly unprotected. The majority of the working-age population, around 69.4% or 4 billion individuals, are either partially protected or have no protection at all.

Gender Inequality in Social Protection

Speaking about gender inequality, the report underscores a substantial 8% point lag in women’s coverage as compared to men’s.

Analysing India’s Scenario

The report attributes the relatively low investment in social protection in India, which stands at just 24.4% of the population, to the insufficient amounts transferred under non-contributory benefits for effective protection. The limited scope of contributory schemes to those employed in the formal sector and the narrow focus of non-contributory schemes on the poorest has resulted in lower social security benefits for India, under the 5% of GDP per capita ($2277). Nevertheless, it acknowledges India’s attempts to extend coverage by combining different tiers of social protection such as the Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGA).

Indian Government Initiatives for Social Security

Various initiatives launched by the Indian government include the Pradhan Mantri Shram Yogi Maan-Dhan Yojana (PM-SYM), National Pension Scheme for Traders and Self-employed Persons (NPS), Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana, National Safai Karamcharis Finance and Development Corporation (NSKFDC), and the Self Employment Scheme for Rehabilitation of Manual Scavengers.

About the International Labour Organisation (ILO)

The ILO is a tripartite United Nations (UN) agency that unites governments, employers, and workers from its 187 member states (including India) to formulate labour standards, develop policies, and devise programmes promoting decent work for men and women. Established in 1919 by the Treaty of Versailles as an affiliate agency of the League of Nations, it became the first specialized agency linked to the UN in 1946. The ILO, headquartered in Geneva, Switzerland, was awarded the Nobel Peace Prize in 1969.

Other Reports by ILO

Besides this, the ILO also publishes reports such as Social Dialogue Report, World Employment and Social Outlook: Trends, World Employment and Social Outlook, World Social Protection Report, and Global Wage Report.

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