The Union Minister of State for Labour and Employment recently highlighted the significant strides made with reference to Social Security for Unorganized Workers in the Lok Sabha. Complying with the Unorganised Workers’ Social Security Act, 2008, a variety of welfare programs have been launched by the government, including life and disability coverage, health benefits, maternity support, and old age protection.
Unorganized Workers constitute about 93% of the total workforce or approximately 43.7 crore workers in India. With the new Social Security Code, 2020 in place, both organized and unorganized sectors are set to be regulated while extending social security benefits to all employees and workers across different organizations.
Life and Disability Coverage Initiatives
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers a life cover of Rs. 2.00 Lakh for insured individuals at an annual premium of Rs. 436/-. Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides accidental death or disability cover of Rs. 2.00 Lakh and Rs. 1.00 Lakh respectively, at a nominal premium of Rs. 20/- per annum. These schemes have seen over 16.92 crore beneficiaries under PMJJBY and 36.17 crore beneficiaries under PMSBY across India.
Health and Maternity Benefit Initiatives
Ayushman Bharat- Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) ensures health insurance coverage of up to Rs. 5.00 lakhs per family for secondary and tertiary care hospitalization. As of July 2023, approximately 24.19 crore beneficiaries have been verified under this scheme.
Old-Age Protection and Digital Initiatives
Launched in 2019, Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) provides a monthly minimum assured pension of Rs. 3000/- for workers aged 60 or above with a monthly income of Rs. 15000/- or less. Another digital initiative includes the eShram Portal which aims to create a comprehensive database of unorganized workers.
Additional Social Security Initiatives for Unorganized Workers
Several additional welfare programs such as One Nation One Ration Card, Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Deen Dayal Upadhyay Gramin Kausal Yojana, Pradhan Mantri Awas Yojana, Pradhan Mantri Gareeb Kalyan Rojgar Yojana, Mahatma Gandhi Bunkar Bima Yojana, Deen Dayal Antyodaya Yojana, and Pradhan Mantri Kaushal Vikas Yojana have been launched to empower the unorganized sector.
The Unorganised Workers’ Social Security Act, 2008
This Act defines unorganized workers as those who work in the informal sector or households, without any regular employment or social security benefits. It empowers both Central and State Governments to frame schemes for these workers. The Act also provides for the constitution of a National Social Security Board and State Social Security Boards to advise and monitor the implementation of the schemes.
The Code on Social Security, 2020
The Code on Social Security, 2020 looks to extend social security to all employees and workers in organized, unorganized or any other sectors. It envisions setting up separate Social Security Funds by the Central and State Governments for unorganized workers, gig workers, and platform workers. It also provides for the establishment of a National Social Security Board to recommend and oversee schemes for these categories of workers.
