The Parliamentary Standing Committee on Labour has recently published a report examining the influence of the Covid-19 pandemic on increasing unemployment rates. The panel urges the government to amplify social security measures, including direct money transfers and urban employment guarantee schemes, for those operating in the informal sector.
Social Security: Definition and Importance
The International Labour Organisation (ILO) describes Social Security as a holistic strategy devised to stave off deprivation. It ensures individuals of a basic minimum income and shields them from uncertainties. This concept encompasses two primary factors:
1. The right to a standard of living adequate for health and well-being, including access to food, clothing, housing, medical care, and necessary social services.
2. The right to income security during unemployment, sickness, disability, widowhood, old age, or other circumstances that render any person unable to earn their livelihood.
The Urgency for Social Security Measures
The report refers to the Periodic Labour Force Survey (PLFS), revealing that 90% of workers, which amounts to around 419 million out of 465 million, belong to the informal sector. These rural and urban informal workers have suffered substantial impacts due to the pandemic, mostly due to their seasonal employment and absence of a formal relationship with an employer.
Report Highlights and Recommendations
The Ministry of Labour’s delayed response to the migrant crisis when the Covid-19 outbreak began resulted in significant damage to the labour market. The committee subsequently proposed various measures:
1. Direct Benefit Transfer: To support informal workers during adverse conditions like Covid-19 by depositing money directly into their bank accounts.
2. Universal Healthcare: The mandate of providing universal healthcare should be made a legal obligation of the government through compulsory health insurance for informal workers.
3. MGNREGA Reforms: An increment in the budgetary allocation for MGNREGA and implementation of an urban jobs guarantee scheme mirroring MGNREGA.
4. Enhancing Employment Opportunities: The promotion of local and pan-India employment opportunities through investments in traditional sectors, strengthening the ‘Make in India’ mission, and intensifying technology infusion into various sectors.
Existing Initiatives to Support Informal Sector
Various schemes have already been implemented to assist the informal sector, such as:
1. Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM)
2. Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)
3. PM SVANidhi
4. Atmanirbhar Bharat Abhiyan
5. Deendayal Antyodaya Yojana National Urban Livelihoods Mission
6. PM Garib Kalyan Ann Yojana (PMGKAY)
7. One Nation One Ration Card
8. Atmanirbhar Bharat Rozgar Yojana
9. Pradhan Mantri Kisan Samman Nidhi
Welfare of Informal Sector Workers: Supreme Court Judgement
The Supreme Court has made significant rulings for the benefit of informal sector workers, including:
1. Registration of Migrant Workers: To ensure they can avail welfare benefits offered by various government schemes.
2. Implementation of ONORC System: To allow migrant labourers access to food at any fair price shop with their ration cards, anywhere in the country.
Way Forward
The Labour Ministry must work with the Statistics and Programme Implementation Ministry to achieve timely completion of the PLFS. There is an urgent requirement for a comprehensive plan to address the deteriorating employment conditions exacerbated by the pandemic. This includes developing a national database of unorganised workers, formalising the sector, enhancing productivity, strengthening existing livelihoods, creating new opportunities, and fortifying social security measures.