This document discusses providing social welfare benefits to informal sector workers in India. It analyzes existing social welfare schemes and identifies gaps in coverage. Key points include: - Existing schemes like RSBY and AABY provide some health and life insurance benefits but do not offer a comprehensive social security system. - Coverage is limited and many informal workers remain unprotected. Implementation challenges include identification of beneficiaries and lack of coordination between state and central authorities. - A unified social security act for informal workers is proposed to consolidate benefits and address gaps in coverage, including a minimum social security floor, housing assistance, and protections for women workers.

1. PROTECTING
THE
VULNERABLE:
PROVIDING
SOCIAL
WELFARE
TO
INFORMAL
SECTOR
WORKERS

2. 83.34
67.39
88.38
18.72
82.64
84.25
72.34
71.34
28.63
75.24
4.24
38.35
41.24
82.35
0
10
20
30
40
50
60
70
80
90
100
(Share
of
non-­‐benefited
total
workers)
/(total
informal
sector
workers
in
a
trade)
(in
percent)
• HIGHLY
SKEWED
NATURE
OF
TRADES
AND
MIGRATORY
NATURE
CAUSES
IDENTIFICATION
ISSUES.
• LACK
OF
CO-­‐ORDINATION
BETWEEN
CENTRE
AND
STATE
BOARDS
AND
COMMISSIONS.
• LACK
OF
AWARENESS
AMONG
THE
WORKERS
ABOUT
VARIOUS
SCHEMES.
• LACK
OF
TEETH
GIVEN
TO
THE
VARIOUS
LEGISLATIONS
IN
THIS
REGARD.
• NO
SCHEME
SPECIFIC
TO
THE
PROBLEMS
OF
FEMALE
WORKERS
WHO
FORM
A
LARGE
PORTION
OF
THE
UNORGANISED
WORK-­‐
FORCE
IDENTIFICATION
OF
GAPS

3. 0
1
2
3
4
5
NSAP
AABY
WLBCW
RSBY
RKVY
DELIVERABLE
INDEX
DELIVERABLE
OF
THE
SCHEME
RATINGS
1
2
3
4
5
Financial
spend/Total
Financial
Outlay
<25%
25-­‐50%
50-­‐70%
70-­‐90%
>90%
Actual
Beneficiaries/Es`mated
Beneficiaries
<25%
25-­‐50%
50-­‐70%
70-­‐90%
>90%
Financial
burden
weighed
by
exchequer/Total
financial
circula`on
>90%
70-­‐90%
50-­‐70%
30-­‐50%
<30%
Fundamentals
and
Prospect
of
the
Scheme
Widely
popularized
with
minimal
success
than
an`cipated
and
no
further
scope
of
improvement
Widely
popularized
but
has
no
scope
of
improvement
in
terms
of
reach
Not
so
popularized
but
has
scope
of
improvement
in
fundamental
terms
Not
so
popularized
or
stands
fundamentally
strong
in
terms
of
reach
and
quality
benefits
Extremely
rich
in
fundamentals
and
benefits
of
op`mum
quality
SCHEME
DELIVERABLE
MATRIX
INFERENCES:
• RSBY
SCORES
SUBSTANTIALLY
IN
FUNDAMENTALS
AND
LONG
TERM
PROSPECTS,
OWING
TO
USE
OF
SMART
CARDS
AND
MODERN
FACILITIES.
• AABY
HAS
PERCEPTIBLY
FAIRED
WELL
IN
TERMS
OF
REACH
AND
FINANCIAL
SPEND
(OWING
TO
ITS
EFFICIENT
IMPLEMENTATION
BY
THE
LIC).
RSBY-­‐
RASHTRIYA
SWASTHYA
BIMA
YOJNA
NSAP:
NATIONAL
SOCIAL
ASSISTANCE
PROGRAMME
AABY-­‐
AAM
AADMI
BIMA
YOJNA
RKVY:
RASHTRIYA
KRISHI
VIKAS
YOJANA
BCWA:
BUILDING
AND
CONSTRUCTION
WORKERS
WELFARE
CESS
ACT
IGNOAPS-­‐
INDIRA
GANDHI
NATIONAL
OLD
AGE
PENSION
SCHEME

4. BENEFITS
PROVIDED
:
• HEALTH
BENEFITS
ü
• LIFE
INSURANCE
ü
• OLD
AGE
PENSION
ü
• PROVIDENT
FUND
SCHEME
û
• EMPLOYMENT
INJURY
BENEFIT
SCHEME
û
• HOUSING
SCHEME
û
• EDUCATIONAL
SCHEME
û
• SKILL
UPGRADATION
OF
WORKERS
û
• FUNERAL
ASSISTANCE
û
• MARRIAGE
OF
DAUGHTERS
û
COVERAGE
OF
BENEFICIARIES:
• 3.5
CRORE
ACTIVE
SMART
CARDS
(FAMILY
BASED)
UNDER
RSBY
AS
ON
15/08/13
• 4.8
CRORE
LIVES
COVERED
UNDER
THE
AABY
AS
ON
31/03/13
IMPLEMENTED
BY
THE
LIC
• ACCORDING
TO
THE
NSAP
WEBSITE
AROUND
1.7
CRORE
PEOPLE
ARE
RECEIVING
BENEFITS
OF
IGNOAPS
A
CRITIQUE:
• THOUGH
THERE
HAVE
BEEN
CONTINUOUS
DEMANDS
FOR
A
MINIMUM
SOCIAL
SECURITY
FLOOR,
THE
GOVT.
HAS
BEEN
QUITE
RELUCTANT
TO
FORMULATE
ONE
• MORE
SOCIAL
SECURITY
PACKAGES
SHOULD
HAVE
BEEN
INTRODUCED
REGARDING
HOUSING,
MATERNITY
BENEFITS,
DISABILITY
COVER
• OFFICIAL
FORUMS
SHOULD
BE
SET
UP
TO
ENSURE
THAT
GRIEVANCES
ARE
HEARD
AND
ADDRESSED.
• PROPER
WORKING
CONDITION
FOR
THE
WORKERS
SHOULD
HAVE
BEEN
A
PART
OF
THE
LEGISLATION.
• HARASSMENT
OF
WOMEN
AT
WORK-­‐PLACES
IS
NEEDED
TO
BE
ADDRESSED
(95.6%
OF
WOMEN
IN
UNORGANIZED
SECTOR
DON’T
GET
MINIMUM
WAGES).
UNORGANISED
WORKERS’
SOCIAL
SECURITY
ACT
2008

5. PHASE
I:
STAKEHOLDER
ANALYSIS
AND
SETTING
UP
COMMITTEES
• SOLUTION
TO
THE
IDENTIFICATION
AND
REGISTRATION
PROBLEMS
• COMPOSITION
OF
THE
BOARDS
AND
ASSOCIATIONS
AT
VARIOUS
LEVELS
PHASE
II:
SETTING
UP
REGISTRATION
AND
DELIVERY
MECHANISMS
• ISSUING
SMART
CARDS
TO
THE
WORKERS
AND
OPENING
OF
BANK
ACCOUNTS
• SYSTEM
WORKING
AND
DELIVERY
MECHANISM
• CESS
LEVIED
ON
THE
WORKER
AND
THE
EMPLOYER
PHASE
IV:
UNIFICATION
OF
EXISTING
AND
NEW
SOCIAL
SECURITY
SCHEMES
• EXISTING
SCHEMES
LIKE
RSBY,
AABY,
NPS
LITE
DISPENSE
BENEFITS
USING
THIS
ONE
SMART
CARD
• INTRODUCING
NEW
MUCH
NEEDED
SCHEMES
UNDER
THIS
SYSTEM
• GRIEVANCE
RERESSAL
MECHANISM
PHASE
V:
PREPARING
FOR
THE
FUTURE
• PROVIDING
VOCATIONAL
TRAINING
TO
EXCEL
IN
THEIR
FIELD
OF
WORK
• ORGANISING
THE
WORKERS
INTO
STRONG
REGISTERED
UNIONS
BRINGING
THEM
UNDER
THE
PURVIEW
OF
VARIOUS
LAWS
PROPOSITION
OVERVIEW
PHASE
III:
MONITORING,
REVIEW
AND
GRIEVANCE
REDRESSAL
MECHANISM
• SYSTEM
MONITORING
AND
DELIVERY
MECHANISM
• GRIEVANCE
REDRESSAL
MECHANISM

6. STRUCTURAL
LAYOUT
(A
GLIMPSE
OF
STAKEHOLDERS
INVOLVED)
DISTRICT
GRIEVANCE
REDRESSAL
OFFICE
(COMPRISING
OF
RETIRED
OFFICERS
AND
JUDGES)
BLOCK
LEVEL
ASSOCIATION
FOR
REGISTRATION
AND
DELIVERY
OFFICE
RAMIFIED
AS
PER
LINE
OF
WORK
(BY
CONSOLIDATING
EXISTING
WFCs
AND
BLOCK
COUNCILLOR)
HEALTH
AND
LIFE
INSURANCE
PROVIDERS
(LIC
INDIA)
STATE
HOUSING
BOARDS
MATERNITY
ASSISTANCE
PROVIDERS
PUBLIC
SECTOR
AND
COOPERATIVE
BANKS
NGOs
AND
SHGs
CENTRAL
SOCIAL
SECURITY
ADVISORY
BOARD
(
HEADED
BY
INTER
MINISTERIAL
COMMITTEE)
STATE
SOCIAL
SECURITY
WELFARE
BOARD
DISTRICT
LEVEL
ENFORCEMENT
BODY
(CHAIRED
BY
OFFICE
OF
COLLECTORATE)
SERVICE
PROVIDERS
IDENTIFICATION
BLOCK
LEVEL
ASSOCIATION
SHALL
ACT
AS
DE
JURE
EMPLOYER
WITH
ALL
THE
UNORGANIZED
WORKERS
OF
THE
BLOCK
REGISTERED
UNDER
THEIR
LINE
OF
WORK
IN
ASSOCIATION
FAILING
TO
WHICH
HE/
SHE
LOSES
THE
ADMISSIBILITY
TO
PROVIDE
SERVICE.
AUTHENTICATION
AUTHENTICATION
OF
TRADE
OF
A
WORKER
IS
DONE
AT
HABITATION
LEVEL
(BY
BLOCK
LEVEL
ASSOCIATION
AND
THE
OFFICE
OF
COLLECTORATE
IN
COLLABORATION
WITH
EXISTING
WELFARE
BOARDS,
NGOS
AND
SHGS),
WITH
STRICT
IMPEDE
IN
DUPLICATION
OF
REGISTRATION
OF
A
WORKER
.
REGISTRATION
AFTER
HAVING
IDENTIFIED
AND
VALIDATED
UNDER
A
LINE
OF
WORK,
HE/SHE
IS
REGISTERED
IN
BLOCK
LEVEL
ASSOCIATION
UNDER
PHASE-­‐II.

7. • REGISTRATION
STARTS
BY
ISSUING
SMART
CARD
TO
EACH
WORKER
THAT
SHALL
DEFINE
HIS
LINE
OF
WORK
AND
GIVE
HIM
ADMISSIBILITY
OF
JOB
IN
THAT
BLOCK
AND
SHALL
ENTITLE
HIM
FOR
ALL
SECURITY
BENEFITS
(TAKING
CUE
FROM
RSBY
AND
IT’S
DETAILED
ANALYSIS
IN
SCHEME
MAPPING
MATRIX).
• A
REGISTERED
WORKER
IS
LINKED
TO
HIS
PRE-­‐EXISTING
BANK
ACCOUNT
ELSE
HE/SHE
GETS
A
NEW
BANK
ACCOUNT
REGISTERED
IN
PARTICIPATING
BANKS.
• IT
MAY
BE
SAFELY
ASSUMED
THAT
THE
UID
AADHAAR
PROJECT
WOULD
COVER
ALMOST
WHOLE
OF
THE
UNORGANIZED
WORK-­‐FORCE.
THE
SMART
CARD
WOULD
CARRY
THE
UID
NO.
THIS
WOULD
ENSURE
THAT
NO
ONE
PERSON
REGISTERS
TWICE
FOR
THE
SMART
CARD.
• AT
A
LATER
STAGE
OF
UPGRADATION
AND
REFINEMENT,
THE
SMART
CARD
CAN
BE
INCORPORATED
WITH
THE
UID
AADHAAR
CARD.
SETTING
UP
REGISTRATION
AND
DELIVERY
MECHANISMS
TOTAL
NO.
OF
WORKERS
REGISTERED
=
A
WORKERS
ALLOTED
TO
EMPOYERS
=
B
WORKERS
LEFT
UNALLOTED
=
A-­‐B
THE
ASSOCIATION
MAINTAINS
THE
RECORD
OF
THE
REGISTERED
WORKERS
(A)
A
PERSON
IN
NEED
OF
WORKERS
APPROACHES
THE
ASSOCIATION
(EMPLOYER)
THE
ASSOCIATION
DISPENSES
THE
REQUIRED
WORKERS
(EMPLOYEES)
THE
EMPLOYER
PAYS
THE
PROMISED
WAGES
+
A
FIXED
SOCIAL
SECURITY
CESS
TO
THE
ASSOCIATION
THE
ASSOCIATION
AUTOMATICALLY
DISBURSES
THE
WAGE
AMOUNT
TO
THE
EMPLOYEE’S
BANK
ACCOUNT
• THE
WORKERS
LEFT
UNALLOTED
(A-­‐B)
WOULD
WORK
INDEPENDENTLY
AS
USUAL
BUT
TO
AVAIL
SOCIAL
SECURITY
BENEFITS
THEY
HAVE
TO
DEPOSIT
A
FIXED
MONTHLY
AMOUNT
AS
CESS
TO
THE
ASSOCIATION.
• AT
THE
NEXT
ALLOTMENT
THESE
WORKERS
WOULD
BE
GIVEN
PREFERENCE
OVER
THOSE
RECENTLY
EMPLOYED
BY
THE
ASSOCIATION.
• THE
WORKERS
WOULD
BE
ENCOURAGED
TO
WORK
UNDER
THE
ASSOCIATION
AS
THEY
WOULD
NOT
BE
REQUIRED
TO
PAY
THE
MINIMUM
CESS.

8. MONITORING,
GRIEVANCE
AND
REDRESSAL
MECHANISM
BENEFICIARY
REGISTERS
THE
COMPLAINT
THROUGH
WEB
BASED
PORTAL
OR
TELEPHONE
IVRS
SYSTEM
IN
PERSON
AT
THE
DISTRICT
GRIEVANCE
REDRESSAL
OFFICE
(DRGO)
COMPLAINT
WILL
BE
AUTOMATICALLY
REDIRECTED
BY
THE
SYSTEM
TO
DISTRICT
GRIEVANCE
REDRESSAL
OFFICE
A
UNIQUE
COMPLAINT
REGISTRATION
NO.
IS
GIVEN
TO
THE
COMPLAINANT
THE
DRGO
WILL
CATEGORISE
IT
AS
A
GRIEVANCE/
COMPLAINT
COMPLAINT
GRIEVANCE
THE
DRGO
WILL
SEND
THE
COMPLAINT
TO
THE
APPROPRIATE
AUTHORITY
FOR
ADDRESSAL
AND
REASONING
COMMENTS
RECEIVED
WITHIN
15
DAYS
COMMENT
FOUND
SATISFACTORY
AFTER
REVIEWING
OF
COMMENT
BY
DRGO
COMMENT
NOT
FOUND
SATISFACTORY
BY
THE
DRGO
COMMENT
NOT
RECEIVED
WITHIN
15
DAYS
COMPLAINT
FORWARDED
TO
THE
DISTRICT
GRIEVANCE
REDRESSAL
COMMITTEE
(DGRC)
COMPLAINT
CLOSED
THE
DGRC
WILL
TAKE
ACTION
WITHIN
30
DAYS
APPEAL
TO
APPELLATE
BODY
BY
THE
AGGRIEVED
PARTY
IF
THE
DGRC
DOES
NOT
TAKE
ANY
ACTION
WITHIN
30
DAYS
ACTION
NOT
FOUND
SATISFACTORY
BY
THE
COMPAINANT
ACTION
FOUND
SATISFACTORY
BY
THE
COMPLAINANT
OR

9. MINIMUM
SOCIAL
SECURITY
BENEFIT
PACKAGE
TO
PROVIDE
UNIVERSAL
MINIMUM
SOCIAL
SECURITY
TO
THE
WORKERS
WITH
EXISTING
SCHEMES:
• HEALTH
BENEFITS
UNDER
RSBY
TO
BE
PROVIDED
TO
ALL
THE
REGISTERED
WORKERS
(MANAGED
BY
ASSOCIATION
AT
THE
BLOCK
LEVEL).
• LIFE
INSURANCE
AND
OLD
AGE
PENSION
TO
BE
PROTRACTED
UNDER
AABY(MANAGED
BY
LIC)
AND
NBS
LITE(SWABALAMBAN)
RESPECTIVELY.
SCHEMES
PROPOSED
FOR
DISCRETE
GROUPS:
• EMPLOYMENT
INJURY
BENEFITS
• MATERNITY
BENEFITS
SPECIFICALLY
FOR
WOMEN
LABOURERS
• THE
CENTRAL
SOCIAL
SECURITY
ADVISORY
BOARD
AND
THE
STATE
SOCIAL
SECURITY
WELFARE
BOARD
MAY
FORMULATE
WELFARE
SCHEMES
FOR
WORKERS
IN
A
SPECIFIC
LINE
OF
WORK.
•
THE
SMART
CARD
WOULD
THEREFORE
ENSURE
EASY
DISPENSATION
OF
A
LARGE
NO.
OF
SCHEMES
AND
ALSO
NEW
SCHEMES
AS
AND
WHEN
THEY
ARE
ADDED.
UNIFICATION
OF
EXISTING
AND
NEW
SOCIAL
SECURITY
SCHEMES
NYUNTAM
KARYAKARI
PARISTHITHI
YOJANA:
• WORKING
HOURS
:
8-­‐HOUR/DAY
WITH
AT
LEAST
1/2-­‐HOUR
BREAK
• AT
LEAST
ONE
PAID
DAY
OF
REST
• A
STATUTORY
NATIONAL
MINIMUM
WAGE
FOR
ALL
WAGE
WORKERS
AND
HOME
• SICKNESS
ALLOWANCE
FOR
15
DAYS
BEYOND
3
DAYS
OF
HOSPITALIZATION
@
RS.
50
PER
DAY
• A
WOMAN
EMPLOYEE
IS
ENTITLED
TO
90
DAYS
OF
PAID
LEAVE
ON
DELIVERY
OR
ON
MISCARRIAGE.
• BLOCK
LEVEL
ASSOCIATION
TAKES
RESPONSIBILITY
FOR
ITS
IMPLEMENTATION

10. PREPARING
FOR
THE
FUTURE
MOBILIZATION
INTO
ORGANIZED
SECTOR
COLLABORATION
WITH
INDIAN
INDUSTRY
ORGANIZATIONS
FOR
SKILL
DEVELOPMENT:
ENTERING
INTO
AN
MOU
WITH
THE
MINISTRY
OF
LABOR
AND
EXPANDING
COLLABORATION
WITH
INDIAN
INDUSTRY
ORGANIZATIONS
LIKE
CII,
FICCI
CAN
LEAD
TO
THE
PROPER
GROWTH
OF
ITI’S
THAT
CAN
CAUSE
THOUSANDS
OF
WORKERS
TO
GET
ORGANIZED
AND
ABSORBED
INTO
ORGANIZED
INDUSTRIES.
BRINGING
WORKERS
UNDER
PURVIEW
OF
TRADE
UNIONS:
COLLABORATION
AMONG
TRADE
UNIONS
AND
THEIR
EXTENSIVE
MEMBERSHIP
PROVIDE
IMPORTANT
CHANNELS
THROUGH
WHICH
THE
CONCEPTS
AND
PRAC-­‐
TICES
OF
SUSTAINABLE
DEVELOPMENT
CAN
BE
SUPPORTED.
THE
ASSOCIATION
MAKING
IT
COMPULSORY
FOR
WORKERS
OF
A
PARTICULAR
VOCATION
TO
FORM
TRADE
UNIONS
IN
ORDER.
DEVELOPMENT
AND
CONSOLIDATION
OF
ITI:
• UNDER
SIMILAR
LINES
OF
PROGRAM
CALLED
IITIANS
FOR
ITI
(ORGANIZED
BY
PAN-­‐IIT)
AIMING
AT
FOCUSING
ON
QUALITY,
TECHNICAL
GUIDANCE
AND
IMPROVING
EQUIPMENT
AND
INTERACTION
WITH
INDUSTRY,
THE
CENTRAL
GOVERNMENT
CAN
STRIVE
TO
REPLICATE
THE
PAN-­‐IIT
PROGRAM
OR
OFFER
TO
EXTEND
GOVERNMENTAL
SUPPORT.

11. BOTTLENECKS
ENVISAGED
INERTIA
TO
REGISTER
IN
ASSOCIATIONS:
• INEFFECTIVENESS
OF
A
HOST
OF
PRE-­‐EXISTING
SCHEMES
ACT
AS
DETERRENT
TO
ENGAGE
IN
MORE
SUCH
INITIATIVES.
• UNWILLINGNESS
OF
WORKERS
TOWARDS
PAYING
MINIMUM
CESS
FROM
THEIR
INCOME
• SINCE
WAGES
ARE
PAID
THROUGH
ELECTRONIC
MODES,
LACK
OF
BANKING
NETWORKS
CAN
PROVE
A
MAJOR
FAULT
LINE.
EMPLOYER’S
RESENTMENT:
• FIXED
EXTRA
AMOUNT
FOR
WELFARE
FUND
PAID
BY
EMPLOYERS
SHALL
BE
A
SOURCE
OF
GRUDGE.
•
RANDOMNESS
OF
THE
ALLOTMENT
PROCESS
MAKES
WORKFORCE
OF
VARIED
QUALITY,
NOT
MEETING
WORKFORCE
REQUIREMENTS.
INFRASTRUCTURAL
INSUFFICIENCY:
• LACK
OF
AVAILABILITY
OF
HI-­‐TECH
MACHINERY
AND
PROPER
KNOW-­‐HOW
TO
HANDLE.
• SETTING
UP
OF
OFFICES
AT
BLOCK
LEVEL

12. REFERENCES
• Goswami,
Paromita.
(2009).
A
Cri`que
of
the
Unorganized
Workers’
Social
security
Act.
Economic
and
Poli,cal
Weekly.
Retrieved
from
hpp://www.epw.in/
system/files/pdf/2009_44/11/A_Cri`que_of_the_Unorganised_Workers_Social_Security_Act.
Pdf
• hpp://dcmsme.gov.in/NCEUS.html
• hpp://dcmsme.gov.in/The_Challenge_of_Employment_in_India.pdf
• www.rsby.gov.in
• Aam
Admi
Bima
Yojana
-­‐
Life
Insurance
Corpora`on
of
India
www.licindia.in/aam_admi_features.htm
• hpp://labour.nic.in/upload/uploadfiles/files/ActsandRules/SocitySecurity/TheUnorganisedWoekersSocialSecurityAct2008.pdf
• WWW.rkvy.nic.in
• hpps://www.npscra.nsdl.co.in
• www.nsap.nic.in
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