Social Security Schemes

Social security is a set of policies and programs designed to reduce poverty and vulnerability by promoting efficient labor markets, diminishing people’s exposure to risks, and enhancing their capacity to manage economic and social shocks. In India, the concept has evolved from traditional community-based support to a rights-based legal framework.

• Constitutional Mandate: Article 41 (Right to work, education, and public assistance), Article 42 (Just and humane conditions of work), and Article 43 (Living wage and social security) of the Directive Principles of State Policy provide the bedrock for social security legislation.
• Recent Reform: The Code on Social Security, 2020, fully operationalized by 2025-26, consolidates nine central labor laws. It extends social security to gig workers, platform workers, and unorganized workers for the first time in Indian history.
• Current Status (2026): According to ILO data, India’s social protection coverage has reached approximately 64.3%, up from 19% in 2015, driven by massive digital inclusion through the e-Shram portal and Jan Dhan-Aadhaar-Mobile (JAM) trinity.

Pillars of Social Security: Insurance and Pension Schemes

The Indian government provides life and disability cover through low-premium insurance schemes and long-term income security through contributory and non-contributory pensions.

1. Life and Accident Insurance

• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):
  • Eligibility: 18–50 years with a bank account.
  • Benefit: ₹2 lakh life cover for death due to any reason.
  • Premium: ~₹436 per annum (auto-debited).
• Pradhan Mantri Suraksha Bima Yojana (PMSBY):
  • Eligibility: 18–70 years.
  • Benefit: ₹2 lakh for accidental death or total disability; ₹1 lakh for partial disability.
  • Premium: ~₹20 per annum.

2. Pension Schemes for the Unorganized Sector

• Atal Pension Yojana (APY): Focuses on the unorganized sector. Subscribers receive a fixed pension of ₹1,000 to ₹5,000 after age 60, depending on their contribution and age of entry (18–40 years).
• PM Shram Yogi Maan-dhan (PM-SYM): A voluntary and contributory pension scheme for workers with monthly income up to ₹15,000. Assures a minimum monthly pension of ₹3,000 after age 60.
• PM Kisan Maan-dhan Yojana: Specifically for small and marginal farmers (18–40 years) with landholding up to 2 hectares. Provides ₹3,000 monthly pension post-60.

Food and Health Security: The Protective Shield

Social security in India is heavily anchored in “in-kind” benefits that ensure basic survival and financial protection against medical emergencies.

1. Universal Health Coverage

• Ayushman Bharat (PM-JAY): The world’s largest government-funded healthcare program. It provides a health cover of ₹5 lakh per family per year for secondary and tertiary care hospitalization to over 12 crore vulnerable families.
• PM Ayushman Bharat Health Infrastructure Mission (PM-ABHIM): Focuses on filling gaps in public health infrastructure, particularly in critical care and primary health centers.

2. Nutrition and Food Security

• National Food Security Act (NFSA), 2013: Legal right to subsidized food grains for 75% of rural and 50% of urban populations.
• PM Garib Kalyan Anna Yojana (PMGKAY): Integrated with NFSA to provide free food grains (5kg per person per month) to over 80 crore beneficiaries, ensuring no household goes hungry during economic transitions.

Social Assistance and Employment-Based Security

These schemes provide direct financial assistance to vulnerable groups who are unable to participate in the formal labor market.

1. National Social Assistance Programme (NSAP)

• Components: Includes Indira Gandhi National Old Age Pension Scheme (IGNOAPS), Widow Pension Scheme (IGNWPS), and Disability Pension Scheme (IGNDPS).
• Coverage: Provides monthly cash transfers to BPL households. While the central contribution is fixed, many states add top-ups, significantly increasing the total monthly payout.

2. Employment and Livelihood Security

• MGNREGA: Provides a legal guarantee for 100 days of unskilled manual work to every rural household. It acts as a “fallback” social security net during agricultural lean seasons.
• PM SVANidhi: Provides collateral-free working capital loans to street vendors to formalize their businesses and provide them with a digital footprint for future social credit.

Comparative Summary of Key Social Security Schemes

Emerging Challenges and Digital Governance

As India pushes for Universal Social Security, the focus has shifted toward digital registries and portability.

• e-Shram Portal: A national database of unorganized workers (NDUW). It provides a Universal Account Number (UAN) to workers, ensuring portability of social security benefits across states—a boon for migrant laborers.
• One Nation One Ration Card (ONORC): Ensures food security for migrants by allowing them to lift their food grain quota from any Fair Price Shop in the country.
• The Funding Gap: Public expenditure on social security remains lower than the global average. Transitioning from “assistance” (tax-funded) to “insurance” (contribution-funded) is the primary economic challenge for the next decade.

UPSC Trivia for Prelims

• Social Security Fund: Created under the Code on Social Security, 2020, to fund welfare schemes specifically for gig and platform workers.
• Article 39A: Mandates the state to provide free legal aid, which is considered a form of “legal social security” for the poor.
• EPFO and ESIC: These are the two primary bodies for formal sector social security. ESIC provides medical and cash benefits, while EPFO manages provident funds and pensions.
• Social Stock Exchange (SSE): A platform for social enterprises to raise funds, reflecting the shift toward private-sector participation in social security delivery.
• First Social Security Law: The Workmen’s Compensation Act of 1923 (now the Employees’ Compensation Act) was the first formal social security legislation in India.