Context
India’s social security framework has long been criticized for its fragmented approach, particularly in addressing the needs of informal workers, highlighting the need for a comprehensive and universal social protection system.
What is Social Security?
It is a crucial aspect of social and economic policy aimed at providing financial and social protection to the country’s diverse population. It is primarily delivered through government initiatives, employer-based benefits, and social insurance programs. Also, it recognises human rights, essential for achieving the Sustainable Development Goals (SDGs).
Need for a universal social protection system
(A) Proactive approach: India should reimagine its social security framework to address the precarious nature of informal work comprehensively. It will ensure the protection of all workers regardless of their employment type or sector.
(B) Integration of targeted relief: A Combination of universal social protection with targeted support for specific worker categories can address various challenges while ensuring inclusivity.
(C) Alignment with global standards: Being a founding member of the ILO, India must ratify the Social Security Convention 1952 to establish basic social security principles.
Challenges in social security
(A) Fragmented framework: In India, social security is mainly tied to the formal sector. As a result, informal sectors are excluded from the social security measures.
(B) Gig workers and emerging categories: Their rise has prompted several schemes like health coverage under Ayushman Bharat and transaction-based pension policies. However, these measures remain inactive, addressing challenges only when a new category of worker emerges.
(c) Implementation gap: Report reveals that there are frequent delays in remittance payments and underutilisation of welfare funds. Even states like Kerala have struggled with the effective functioning of welfare boards.
(D) Low coverage in the unorganised sector: More than 90% of the workforce is in the unorganised sector. Even after that, only a small fraction gets the benefits of social security schemes.
(E) Underestimation of coverage– The ILO report does not account for in-kind benefits. These include food security and housing state-administered schemes.
Schemes fostering the adoption of social security
(a) e-shram portal- It targets all informal groups in the country, wherein it provides a UAN- UAN-linked central database for welfare access.
(b) Atal Pension Yojana– It targets all citizens, more specifically unorganised ones. Under this, there will be a defined pension scheme.
(c) ESIC( employees’ state insurance)– It targets formal workers, now extended to gig workers. It mainly provides benefits in terms of health, maternity, and disability benefits.
(d) PM-SYM( Pradhan Mantri Shram Yogi Maan-Dhan)– It focuses on mainly unorganised workers. They will get a pension of Rs 3000/month after the age of 60.
Recent initiatives taken by the side of government
(a) Extending benefits to gig and platform workers– Under the social security umbrella through a platform like e-shram and the Social Security Code 2020.
(b) Digital and financial inclusion– The Jan-Dhan-Adhaar trinity has strengthened the delivery of welfare benefits. It ensured direct benefit transfer(DBT) to beneficiaries, reducing leakages and improving transparency.
(c) Ration card portability under one nation one ration card(ONORC)– It enables migrant workers to access the subsidised food grains anywhere in India.
(d) Strengthening healthcare and insurance for informal workers– The government has been pushing for the inclusion of informal workers in the health schemes, ensuring access to PM-JAY and ESIC facilities.
Conclusion
India’s universal social security aspirations resonate well with the ILO’s social protection floors recommendation. It includes basic income security, access to essential healthcare, and extension to the informal economy. So by adopting a universal and inclusive social protection system, India can ensure the dignity and well-being of its workforce. At the same time, sustainable economic growth can also be there.