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Social Security for Unorganised Sector Workers in India: Alternative Approaches and New Initiatives Babu P. Remesh V.V.GIRI NATIONAL LABOUR INSTITUTE,

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Presentation on theme: "Social Security for Unorganised Sector Workers in India: Alternative Approaches and New Initiatives Babu P. Remesh V.V.GIRI NATIONAL LABOUR INSTITUTE,"— Presentation transcript:

1 Social Security for Unorganised Sector Workers in India: Alternative Approaches and New Initiatives Babu P. Remesh V.V.GIRI NATIONAL LABOUR INSTITUTE, INDIA

2 The Context In India, of late, social security to unorganised sector workers assumed unprecedented prominence Designing of new and more effective social safety measures Introduction of innovative methods - for identification and enrolment Designing of efficient delivery mechanisms Emphasis on cost-effective and targeted interventions Efforts towards a comprehensive legislation Creation of other enabling frameworks Emphasis on participation of other stakeholders and Beneficiaries.

3 Determinants Growth of unorganised sector and shrinking organised sector employment Decline in long-term social security provisions- the growing fiscal deficit scenario of governments Inadequacy of existing legal and protective frames

4 Scheme of the Paper Overview of the growing informal sector employment A critical appraisal of hitherto implemented social security measures New initiatives and alternative approaches Conclusion

5 Food Security Initiatives Social Insurance and Pension Measures Legislative Interventions and Initiatives on Social Security New initiatives & Alternative Approaches

6 Mid Day Meals Scheme (MDMS), 1995 Community Grain Bank Scheme, 1996 Targeted PDS, 1997 Annapurna Scheme, 2000 Antyodaya Anna Scheme, 2000 Food Security Initiatives

7 Social Insurance and Pension Measures Janshree Bima Yojana, 2000 Krishi Samajik Suraksha Yojana, 2001 Varishta Pension Bima, 2003 Unorganised Sector Workers Social Security Scheme, 2004 Universal Health Insurance Scheme, 2004

8 Legislative Interventions & Initiatives on Social Security Second National Commission on Labour, National Rural Employment Guarantee (NREG) Act, 2005 The Right to Information (RTI)Act, 2005 NCEUS Report on Social Security, 2006

9 Engaged special study group on social security Provided outline for an umbrella legislation Recommendations Unemployment insurance scheme and national scheme for unemployment relief Expansion of coverage of welfare funds National widow pension scheme Comprehensive plan for social protection of disabled Second NCL: Major Concerns and Recommendations

10 NCEUS Report on Social Security A Major Recent Initiative in Protective Security NCEUS makes out a case for national minimum social security for all workers in the informal economy to be covered in a phased manner over a period of 5 years. The most important issues addressed by the NCEUS is those based on Adversity and thus protective in nature. Concerns are thus: cover for ill-health, accidents/death and old age

11 NCEUS: Social Security Benefits Health Insurance (Sickness cover for family; Maternity benefit cover; Accidental death/Permanent disability; Disability allowance during hospitalization up to 15 days) Life Insurance Old Age Security Old age pension for Below Poverty Line (BPL) workers Provident Fund for Above Poverty Line (APL) workers

12 NCEUS: Contribution APL workersRe.1 a day or Rs.365 per annum Government of IndiaRe.1.50 per day or Rs per annum State GovernmentRe.0.50 per day or Rs BPL workersNo contribution Government of IndiaRe.1.21 per day or Rs.442 per annum State GovernmentRe.0.24 per day or Rs.88 per annum

13 NCEUS: Collection of Premium & Delivery of Benefits Through Post office network (>156,000 Post Offices) Workers to open Saving Accounts Department of Post to act as book-keeper

14 National Rural Employment Guarantee (NREG) Act, 2005 A Recent Major Initiative in Promotional Security Follow-up in line with the Common Minimum Programme of the Government A right based programme - the state is obliged to provide employment on demand or compensation Guarantees employment (of upto 100 days) to all rural households, on demand.

15 Right to Information Act, 2005 An enabling act that provides right to get information, which can improve efficiency of welfare programmes. Encouraging initial responses Useful tool to ensure proper implementation of social security measures and schemes such as NREGA

16 Conclusion On the whole, there is an increased recognition of social security concerns of informal sector labour in India, which is evident from: Designing and implementation of right- based social security systems Introduction of enabling governance structures Involvement of other stakeholders and social partners, including the beneficiaries

17 Thank You


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