Unorganised Sector Social Security Bill 2007

Unorganized sectors
ROHIT JHA
KDR/IIT KGP/RGSOIPL/Labour-2008 1
Work force
Total work force – 397 million
370 million workers (40 crore) constituting 93% of the total
workforce in a country were employed in the unorganized
sector
Organised sector – 28 million
44.35 million enterprises
79.71 million workers in the informal sector enterprises
39.74 million are in rural areas
39.97 million in urban area
70.21 are full time and 9.5 million are part time.
female workers to the total workers is 20.2 percent.
Category Agriculture Non- Total
agriculture
Formal 4.88 51.57 56.45
Informal 232.80 107.52 340.32
Total 237.67 159.09 396.76

Distribution of employment
Agriculture – 62%
Industry – 11%
Service Sector – 27%
Regular salaried – 16%
Self employed – 53%
Casual wage – 31%
Social security
Social insurance
Social assistance
Social protection
Social safety net
Various social security schemes present
Disablement
- Workmen’s Compensation Act, 1923
- Employees’ State Insurance Act, 1948
Death
- Workmen’s Compensation Act, 1923
Maternity
- Maternity Benefit Act, 1961
Risks covered
Medical,Unemployment Benefit and Disable
Pension
- Old-age Income Security and Pension
- Coal Mines P. F. & Bonus Scheme Act, 1948
- Employees’ P. F. & Miscellaneous Act, 1952
- Assam Tea Plantations P. F. Scheme Act, 1955
- Seamen’s Provident Fund Scheme Act, 1955
- Funeral
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
• Swarnjayanti Gram Swarojgar Yojana,
Different social schemes
Jawahar Gram Samridhi Yojana,
Employment Assurance Scheme
National Social Assistance Programme (NSAP)
Janshree Bima Yojana Yojana’ is a group insurance
scheme and covers natural/accidental death, partial
or total permanent disability due to accident and the
people below poverty line and marginally above are
eligible to join the Scheme.
Different schemes
Another group insurance scheme for the agriculture
landless labour, ‘Krishi Shramik Samajik Suraksha
Yojana-2001’ launched in July, 2001 provides for
pension and insurance besides providing money back.
The contribution of the beneficiary is Re.1 per day
while the Government contributes Rs. 2/- per day.
Innovative housing schem in Solapur, Pune among
women beedi workers.
20 million construction workers – cess on the project
cost. – state of Kerala, TN and Delhi implemented.
Second NCL: Major Concerns and
Recommendations
•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
•National Commission for Enterprises in the Unorganized Sector has

been constituted.
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
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
Report of NCEUS
Report on Social Security for Unorganised
Workers.
A National Social Security and Welfare Fund.
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.
Initiatives for Informal Sector- Public
1. National Social Assistance Programmes (1995)
2. Central Welfare Funds
3. Public Distribution System
4. Varishta Pension Bima (2003)
5. Janshree Bima Yojana (2000)
6. Universal Health Insurance Scheme (UHIS), 2004
7. National Rural Employment Guarantee Scheme, 2005
Initiatives for Informal Sector- Private
- Civil Society organisations (NGO) and Cooperatives
- Coverage about 5 million
- Not more than 2-3% of the total workforce in the informal
sector
- Mostly self contributory
- Predominantly health-related and maternity risk coverage
through insurance companies
Important Private Initiatives
1. SEWA-Women working in informal sector employment-
Healthcare and insurance benefits
2. Co-operative Development Foundation-life insurance
3. NIDAN- life insurance
4. YESHASVINI- medical benefits
5. SPARC- medical and disability benefits for slum dwellers
6. ASSEFA – life insurance
7. ACCORD- life, health and property insurance
8. SIFFS –health and life insurance
Objective of the Bill
THE UNORGANISED SECTOR WORKERS’
SOCIAL SECURITY BILL, 2007
to provide for the social security and welfare of
unorganized sector workers
Definitions
(k) “unorganised sector” means an enterprise owned by
individuals or self-employed workers and engaged in
the production or sale of goods or providing service of
any kind whatsoever, and where the enterprise employs
workers, the number of such workers is less than ten.
“unorganised sector worker” means a home based
worker, self-employed worker or a wage worker in the
unorganised sector;
Definitions
S.2(b)
"home-based worker" means a person engaged in the
production of goods or services for an employer in his
or her home or other premises of his or her choice
other than the workplace of the employer, for
remuneration, irrespective of whether or not the
employer provides the equipment, materials or other
inputs;
Social security benefits
S.3(1)
(a) life and disability cover;
(b) health and maternity benefits;
(c) old age protection; and
(d) any other benefit as may be determined by the
Central Government.
Other schemes
S.3(4)
(a) provident fund ;
(b) employment injury benefit ;
(c) housing ;
(d) educational schemes for children;
(e) skill upgradation of workers;
(f) funeral assistance; and
(g) old age homes.
Administration
National Social Security Advisory Board
Chairperson
Director General (Labour Welfare) – Member Secretary,
ex officio;
seven representing unorganised sector workers; (ii)
seven representing employers of unorganised sector;
(iii) seven representing eminent persons from civil
society; (iv) five representing State Governments;
and (v) five representing Central Government
Ministries and Departments concerned.

Constitution of Board
S.5(3).
The Chairperson and other members of the Board
shall be from amongst persons of eminence in the
fields of labour welfare, management, finance, law
and administration.
Provided that adequate representation shall be
given to persons belonging to the Scheduled
Castes, the Scheduled Tribes, the Minorities and
Women.
The term of Board is 3 years.
Functions of the board
 (a) recommend to the Central Government suitable schemes for different
sections of unorganised sector workers;
 (b) advise the Central Government on such matters arising out of the
administration of this Act as may be referred to it;
 (c) monitor such social welfare schemes for workers in the unorganised
sector as are administered by the Central Government;
 (d) review the progress of registration and issue of identity cards to the
unorganized sector workers;
 (e) review the record keeping functions performed at the State level;
 (f) review the expenditure from the funds under various schemes;
 (g) undertake such other functions as are assigned to it by the Central
Government from time to time.
State boards
State Social Security Boards
Chairperson
Member secretary+26 Members
Registration
Every unorganized sector worker shall be eligible for
registration subject to:
(a) he or she shall have completed fourteen years of
age; and
(b) a self-declaration by him or her confirming
that he or she is an unorganised sector worker.
The registering authority is the District
Administration.

Schemes proposed
1. Scheme for pension to Master Crafts persons.
2. National Old Age Pension Scheme.
3. National Family Benefit Scheme.
4. National Maternity Benefit Scheme .
5. Mahatma Gandhi Bunkar Bima Yojana.
6. Health Insurance Scheme for Handloom Weaver.
7. Group Accident Insurance Scheme for Active fishermen.
8. Saving-cum-Relief for the fishermen.
9. Janshree Bima Yojana.
10. Aam Admi Bima Yojana.
11. Swasthya Bima Yojana.

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Unorganized sectors

Informal 232.80 107.52 340.32

Total 237.67 159.09 396.76

•National Commission for Enterprises in the Unorganized Sector has

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