In a big move ahead of 2019 Lok Sabha elections, the Narendra Modi government is all set to come up with a social security scheme, according to Indian Express report. This is aimed as a safety net for workers in the informal labour sector. The draft social security code has been prepared by the Ministry of Labour & Employment. It aims for a universal coverage for those who are outside the ambit of the EPFO and the ESIC. The scheme provides mandatory pension, insurance against disability and death, and maternity coverage, alongside optional medical and unemployment coverage. It has been learnt that the Centre has started consultations with states to bring them on board for part-financing the scheme. The scheme could be launched later this year. Notably, key state elections will be held in 2018 ahead of the big 2019 Lok Sabha elections.
“At the present moment, in both EPFO and ESIC, the employer contributes and equal amount is contributed by the employee also. If you are covering the entire population, there will be one segment which will not be able to contribute at all. Now, for the segment below the poverty line, the government plans to foot the entire bill, in which case it has to be shared between the states and the Centre. So we need to bring the states on board,” a senior labour ministry official said.
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“We are working on the funding. Parallely, a lot of schemes are also being implemented now. These are funds for social security which are being deployed not only by the Centre but by the states also. Like if the central government is giving Rs 300 as old age pension, states are adding to it and giving a lot of money. Some states have Rs 1000 as minimum old age pension. Lot of other schemes are being implemented such as insurance schemes, disability benefits, maternity benefits,” the official said.
“So many things are being implemented by different ministries, by different states. A pool of money is available already but we need to work out how much extra is required. Whether it is too big, in which case whether the government will be able to foot that bill, whether it can be managed within the available resources. So these are things which require lot of work,” said the official.
According to the survey conducted by the National Sample Survey Organization (NSSO) in 2011-12, about 83 per cent or 39.14 crore persons out of total 47.41 crore employed persons were employed in unorganised sector. The organised sector is already covered through social security legislations like the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and the Employees State Insurance Act, 1948, while the labour law coverage for unorganised sector is lacking in the country.
