unorganised sector social security bill 2007

8/8/2019 Unorganised Sector Social Security Bill 2007

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1KDR/IIT KGP/RGSOIPL/Labour-2008

Unorganized sectors

ROHIT JHA


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Work forcey Total work force 397 million

y 370 million workers (40 crore) constituting 93% of the total

workforce in a country were employed in the unorganizedsector

y Organised sector 28 million

y 44.35 million enterprises

y

79.71 million workers in the informal sector enterprisesy 39.74 million are in rural areas

y 39.97 million in urban area

y 70.21 are full time and 9.5 million are part time.

y female workers to the total workers is 20.2 percent.KDR/IIT KGP/RGSOIPL/Labour-2008 2


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Workers in Formal and Informal Sectors (in million)

Category Agriculture Non-

agriculture

Total

Formal 4.88 51.57 56.45

Informal 232.80 107.52 340.32

Total 237.67 159.09 396.76


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Distribution of employmenty Agriculture 62%

y Industry 11%

y Service Sector 27%y Regular salaried 16%

y Self employed 53%

y Casual wage 31%

KDR/IIT KGP/RGSOIPL/Labour-2008 4


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Social securityy Social insurance

y Social assistance

y Social protectiony Social safety net



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Various social security schemes present

Disablement

- Workmens Compensation Act, 1923

- Employees State Insurance Act, 1948

Death

- Workmens Compensation Act, 1923


Maternity

- Maternity Benefit Act, 1961



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Risks covered

Medical,Unemployment Benefit and DisablePension


- 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

- Seamens Provident Fund Scheme Act, 1955

- Funeral



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Social Insurance and Pension Measures

Janshree Bima Yojana, 2000

Krishi Samajik Suraksha Yojana, 2001

Varishta Pension Bima, 2003

Unorganised Sector Workers Social SecurityScheme, 2004

Universal Health Insurance Scheme, 2004

Swarnjayanti Gram Swarojgar Yojana,


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Different social schemesy Jawahar Gram Samridhi Yojana,

y Employment Assurance Scheme

y National Social Assistance Programme (NSAP)y Janshree Bima Yojana Yojana is a group insurance

scheme and covers natural/accidental death, partial ortotal permanent disability due to accident and the

people below poverty line and marginally above areeligible to join the Scheme.



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Different schemesy Another group insurance scheme for the agriculture

landless labour, Krishi Shramik Samajik Suraksha

Yojana-2001 launched in July, 2001 provides forpension and insurance besides providing money back.The contribution of the beneficiary is Re.1 per day

while the Government contributes Rs. 2/- per day.

y

Innovative housing schem in Solapur, Pune amongwomen beedi workers.

y 20 million construction workers cess on the projectcost. state of Kerala, TN and Delhi implemented.



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Engaged special study group on social security

Provided outline for an umbrella legislation Recommendations

Unemployment insurance scheme and national scheme for unemploymentrelief

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.

Second NCL: Major Concerns and

Recommendations


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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 informaleconomy to be covered in a phased manner over aperiod of 5 years.

The most important issues addressed by the

NCEUS is those based on Adversity and thusprotective in nature.

Concerns are thus: cover for ill-health,

accidents/death and old age


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NCEUS: Social Security Benefits

Health Insurance (Sickness cover for family;Maternity benefit cover; Accidentaldeath/Permanent disability; Disability allowanceduring 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


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Report of NCEUSy Report on Social Security for Unorganised

Workers.

yANational Social Security and Welfare Fund.



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National Rural Employment Guarantee

(NREG) Act, 2005A Recent Major Initiative in Promotional Security

Follow-up in line with the Common Minimum

Programme of the GovernmentA right based programme - the state is obliged toprovide employment on demand or compensation

Guarantees employment (of upto 100 days) to allrural households, on demand.


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Initiatives for Informal Sector- Public

1. National Social Assistance Programmes (1995)

2. Central Welfare Funds

3. Public Distribution System4. Varishta Pension Bima (2003)

5. Janshree Bima Yojana (2000)

6. Universal Health Insurance Scheme (UHIS), 2004

7. National Rural Employment Guarantee Scheme, 2005


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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 informalsector

- Mostly self contributory

- Predominantly health-related and maternity risk coverage

through insurance companies


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All these statutes provide social security

coverage to 11% of the workforce only

because of threshold and eligibility criteria.


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Important Private Initiatives

1. SEWA-Women working in informal sector employment-Healthcare and insurance benefits

2. Co-operative Development Foundation-life insurance3. NIDAN- life insurance

4. YESHASVINI- medical benefits

5. SPARC- medical and disability benefits for slum dwellers

6. ASSEFA life insurance7. ACCORD- life, health and property insurance

8. SIFFS health and life insurance


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Objective of the Billy THE UNORGANISED SECTORWORKERS SOCIAL

SECURITY BILL, 2007

y

to provide for the social security and welfare of unorganized sector workers



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Definitions

y (k) unorganised sector means an enterprise owned by

individuals or self-employed workers and engaged inthe production or sale of goods or providing service ofany kind whatsoever, and where the enterprise employsworkers, the number of such workers is less than ten.

y unorganised sector worker means a home basedworker, self-employed worker or a wage worker in the

unorganised sector;



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Definitionsy S.2(b)

y "home-based worker" means a person engaged in the

production of goods or services for an employer in hisor her home or other premises of his or her choiceother than the workplace of the employer, forremuneration, irrespective of whether or not the

employer provides the equipment, materials or otherinputs;



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Social security benefitsy S.3(1)

y (a) life and disability cover;

y (b) health andmaternity benefits;y (c) old age protection; and

y (d) any other benefit as may be determined by theCentral Government.



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Other schemesy S.3(4)

y (a) provident fund ;

y (b) employment injury benefit ;y (c) housing ;

y (d) educational schemes for children;

y (e) skill upgradation of workers;

y (f) funeral assistance; and

y (g) old age homes.



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Administrationy National Social Security Advisory Board

y Chairperson

y Director General (Labour Welfare) MemberSecretary, ex officio;

y seven representing unorganised sector workers;(ii) seven representing employers of unorganised

sector; (iii) seven representing eminent persons from civil society; (iv) five representing StateGovernments; and (v) five representing CentralGovernment Ministries and Departments

concerned. KDR/IIT KGP/RGSOIPL/Labour-2008 25


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Constitution of Boardy S.5(3).

y The Chairperson and other members of the Board

shall be from amongst persons of eminence in thefields of labour welfare, management, finance, law andadministration.

y Provided that adequate representation shall be

given to persons belonging to the ScheduledCastes, the Scheduled Tribes, the Minorities andWomen.

y The term of Board is 3 years.



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Functions of the boardy (a) recommendto the Central Government suitable schemes for different

sections of unorganised sector workers;

y (b) advise the Central Government on such matters arising out of theadministration of this Act as may be referred to it;

y (c) monitor such social welfare schemes for workers in the unorganisedsector as are administered by the Central Government;

y (d) review the progress of registration and issue of identity cards to theunorganized sector workers;

y (e) review the record keeping functions performed at the State level;

y (f) review the expenditure from the funds under various schemes;y (g) undertake such other functions as are assigned to it by the Central

Government from time to time.



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State boardsy State Social Security Boards

y Chairperson

y Member secretary+26 Members



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Registrationy Every unorganized sector worker shall be eligible for

registration subject to:

y

(a) he or she shall have completedfourteen years ofage; and

y (b) a self-declaration by him or her confirmingthat he or she is an unorganised sector worker.

y The registering authority is the DistrictAdministration.

y



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S

chemes proposed1. 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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unorganised sector social security bill 2007

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