17 - Chapter 9 PDF
17 - Chapter 9 PDF
17 - Chapter 9 PDF
9.1 Introduction
have further created many critical issues for the social security sector.
necessary, as they cushion the blow for those most severely affected, help to
maintain the legitimacy of reform, and help to avoid a backlash against the
1 Rodrik, D.(1998): "Globalization, Social Conflict, and Economic Growth" (Prebisch Lecture),The World
Economy 21(2), at. 143-158
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workers and so on testify a paradigm shift in the social security front. Also,
in the recent past, there has been an increased emphasis on creating enabling
the workforce) and enhancing their reservation income in the labour market.
the Chairmanship of Late Dr. Aijun Sengupta. The Commission has the
elaborate discussions with trade unions and other stake holders found that
2 Babu Ramesh, “Rethinking Social Protection for India’s Working Poor in the Unorganised Sector"
www.welfareacademy.org/pubs/intemational/policy.
3 National Common Minimum Programme provided that “The UPA Government is firmly committed to
ensure the welfare and well-being of all workers, particularly those in the unorganised sector who
constitute 93 per cent of our workforce. Social security, health insurance and other schemes for such
workers like weavers, handloom workers, fishermen and fisherwomen, toddy tappers, leather workers,
plantation labour, beedi workers, etc. will be expanded.”
4 One of the terms of reference was to review the social security system available for labour in the informal
sector, and make recommendations for expanding their coverage.
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there is a need for separate laws to protect agricultural workers and non-
Commission (2002). Still, all of them were thrown into the dustbin and the
Ministry of Labour and Employment brought out its own Bill, the
Unorganised Sector Workers' Social Security Bill, 2007 before the Rajya
Sabha during the zero hour. The Bill was referred to the Parliamentary
NGOs. The Committee also invited suggestions and comments from various
going through the memoranda received, the Committee was convinced that
‘The Unorganized Sector Workers' Social Security Bill, 2007 in its present
form will not be able to meet the aspirations of millions of workers in the
significant terms contained in the Bill, various clauses of the Bill relating to
amendments have altogether changed the very nature and structure of the
Bill, the Committee felt that it was prudent to enclose a copy of the Bill
5 Dr. I. Sharath Babu, “Social Security Protection for the Unorganised Workers in India - a myth or
reality? ” published in Labour Law Journal, June 2010 at. 50-51
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Sabha, and the Report of the Parliamentary Standing Committee for Labour
along with draft laws prepared by the National Commission for Enterprises
original Bill with minor changes. This clearly demonstrates the attitude and
lack of pragmatic approach on the part Government despite the fact that
Constitutional Right from decades. But after a long wait what the
The UPA Government has brought the Act into effect, in the last six
months of its tenure with a hope to pull votes of unorganised sector workers
“When the income of our people is only Rs. 20 per day, our Parliament,
through this Bill, has given an income of two dollars a day to our people in
the rural areas. Anybody can stand up and say that I want a job. You get a
job of two dollars a day. What a jump it is from Rs. 20 to Rs. 80, and to
Rs.135 in States like Delhi, Haryana and Punjab!” Perhaps, the Minister
wanted to conceal the fact that the workers had to fight a major battle even
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to get the declared wages of Rs. 80 even in the much trumpeted the
Government’s own reply to the debates, the Minister has clarified that the
over a period of five years, extending benefits to 1 crore 20 lakh workers per
year. This makes it amply clear that the Act is only an eyewash and intends
to cover just 6 crore workers out of the total workforce of more than 42
on the part of the State; this Act, instead, leaves the implementation entirely
Social Security Act, 2008 (herein after referred to as ‘the Act’). This may
give an impression that the Act will cover unorganised workers in the
organised sector as well. But, the change in title does not made much effect
6 Pritam Ghosh “Unorganized Workers’ Social Security Act, 2008-A Critical Analysis" in jurisonline.in
on 28* August, 2009 .
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and includes a worker in the organised sector who is not covered by any of
the Acts mentioned in Schedule II to this Act.10 This will imply that casual
and contract workers in the organized sector are excluded from the purview
of the present legislation as they are covered under some of the Acts
specified under the Schedule of the Act. Further, the Section 2(c) of the Act
providing service of any kind whatsoever, and where the enterprise employs
workers, the number of such workers is less than ten. This implies that any
7Sec. 2(b) of the Act defines home-based worker as 'a person engaged in the production of goods and
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.
8Sec. 2(k) of the Act defines The 'self-employed’ worker as 'any person, who is not employed by an
employer, but engages himself or herself in an occupation in the unorganized sector subject to a monthly
earning of an amount notified by the Central or State Government from time to time or holds cultivable
land subject to such ceiling as may be notified by the State Government.
9Sec. 2(n) of the Act defines 'wage worker' as a person engaged for remuneration in the unorganized
sector, directly by an employer or through any contractor, irrespective or place of work, whether
exclusively for one employer or one or more employers, whether in cash or in kind, whether as a home
based worker, or as a temporary or casual worker, or as a migrant worker, or workers employed by
households including domestic workers, with a monthly wage of an amount as may be notified by the
Central Government and State Government, as the case may be.
10. The Schedule II of the Act consists of The Employees’ Compensation Act, 1923; The Employees’
State Insurance Act, 1948; The Industrial Disputes Act, 1947; The Employees' Provident Fund and
Miscellaneous Provisions Act 1952; The Maternity Benefit Act, 1961 and The Payment of Gratuity Act,
1972.
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‘unorganised sector’ and workers employed in such an entity are not entitled
systems such as forest workers and fish workers, who cannot be brought
workers. The Act does not even cover unorganised cross-border temporary
family workers and care workers (such as Anganwadi workers) are also not
11 John, J. “Social Security Act: The Great Indian Tamasha on Unorganised Sector Workers, ” Cover
Story, Labour File, Vol.6, No.6. December 2008.
12 Saxena, K.B., “The Unorganised Sector Workers' Social Security Act, 2008: A Commentary” Article
published in ‘Social Change ’, Vol.39, No.2. (2009).
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The long title of the Act provides that the Act is passed to “provide for
the social security and welfare of unorganised workers and for other matters
the Act provides that the Central and the State Government shall formulate
and notify schemes from time to time covering life and disability, health
and maternity benefits, old age protection and any other benefit as may be
determined by the Central Government. This inter alia underscores the fact
worker need to register him self after fulfilling certain conditions specified
in the section.15 But the Act does not define the term ‘social security
13 See The Gazette of India, Extraordinary, Part II, Section I, dated the 31st December, 2008.
14 Babu Pottaveettil Remesh, "Extending social protection for unorganized sector workers in India: One
step forward, two steps backward? " Paper presented at 6th International Policy and Research Conference
on Social Security Luxembourg.
15 Section 10 of the Act provides that
(1) Every unorganised worker shall be eligible for registration subject to the fulfillment of the following
conditions, namely:—
(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 worker.
(2) Every eligible unorganised worker shall make an application in the prescribed form to the District
Administration for registration.
(3) Every unorganised worker shall be registered and issued an identity card by the District Administration
which shall be a smart card carrying a unique identification number and shall be portable.
(4) If a scheme requires a registered unorganised worker to make a contribution, he or she shall be eligible
for social security benefits under the scheme only upon payment of such contribution.
(5) Where a scheme requires the Central or State Government to make a contribution, the Central or State
Government, as the case may be, shall make the contribution regularly in terms of the scheme.
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Under this scheme any person of 60 years17 old and belonging below
poverty line family is entitled for monthly pension. From November, 2007
onwards, at a revised rate pension of Rs. 200 with equal contribution from
16 As all these Schemes are discussed in detail in the Chapter VI, a brief details of these Schemes is given
in this Chapter.
17 With effect from 1st April, 2011 onwards age limit is lowered from 65 years to 60 years.
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the States is provided. So, this scheme provides a monthly pension of Rs.
households below the poverty line in the event of the death of primary bread
Rs. 10,000.
deliveries and provision for post-partum care. Under this scheme, cash
benefit is given to the poor pregnant women aged 19 years and above for
institutional delivery.
This Scheme came into being during the 11th plan with an
and the ‘Mahatma Gandhi Bunker Bima Yojana’. The former scheme was
providing health care facilities to the handloom weavers and the latter one
This Scheme has two main constituents, viz. Raiv Gandhi Shilpi
Swasthya Bima Yojana and Bima Yojana for Handicrafts Artisans. The
former provides life insurance protection to the handicrafts artisans and their
handicrafts artisans.
Under this Scheme, the senior master craft persons (above 60 years of
Villages (ii) Group Accident Insurance for Active Fi&ermen (iii) Saving
and who live in below poverty line family or on the margin. Scheme
provides for payment of Rs. 30,000/- in the event of death due to natural
households, 'Aam Admi Bima Yojana' was launched. The benefits under this
scheme are limited to Rs.30,000 in case of natural death, Rs.75,000 for death
per scheme, the enrolled BPL families are eligible to get medical benefits
from various empanelled hospitals. The benefits are limited to Rs. 30,000 to
maternity benefits are also provided under this scheme. The building and
Act. These Schemes are already existing target oriented social security
programmes initiated by the Central Government. The Act only provides for
Application of these schemes is subject to the condition that the family must
be a below poverty line. Most of the urban unorganized workers may not fall
under the BPL category which ultimately excludes them from the benefits of
the schemes.
The Act does not even provide any assured minimum social security.
adopted in 1952 provides that any social security benefit scheme need to
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maternity and survivor's benefits. The Act which is passed after sixty years
Moreover, even though the Act was passed with the objective of
providing social security and welfare to the unorganized workers, it does not
confer any defined right to social security for them. The social security
schemes are not included as part of the body of the Act but are given in a
The Act provides for a three tier structure mechanism for the purpose
Board with Union Minister for Labour and Employment as Chairperson, and
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persons from civil society, two members from Lok Sabha and one member
from Rajya Sabha, and also five each members representing Ministries from
the Central and the State Governments.19 This is a multi partite composition.
unorganised workers;
administration of Act;
workers;
(v) review the record keeping functions performed at the State level;
(vi) review the expenditure from the funds under various schemes; and
Government.
19
See Section 5(1) read with Section 5 (2) of the Act.
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State Social Security Board for the purpose of implementation of the Act.
Composition and functions of State Social Security Board are similar to that
two institutions both at National and State level which are constituted with
the task of implementation of the Act has very meager representation from
workers. The National Social Security Board has provision to have only
Further, the Social Security Boards which are entrusted with the
are not empowered to perform any function except that of monitoring and
schemes. But the Act is silent about at which level these Workers
The Act does not provide for the creation of a structured Social
recommended that social security schemes cannot just work without any
statutory backing and assured resource allocation, which was not taken into
consideration by the Government and the Act was brought into force without
making provision for funds. The absence of Social Security Fund in the Act,
social security rights to the unorganised workers in India. The Act should
Fund, and a financial memorandum for budgetary allocation for the Fund.
Most of the Schemes are available only for below poverty line family.
A person earning more than Rs.26 per day in village and Rs. 32 per day in
urban area is not considered below poverty line population as per the
current below poverty line norms.22 This estimation is made by the 11th
criticised this estimation because spending below this will lead to starvation.
denied the benefits of the schemes provided under the Act. Moreover,
disentitles the worker from getting any benefits. At the same time the Act
22 As per the affidavit filed before the Supreme Court by 11th Planning Commission, on 28th September
2011, a person spending more than 26/day in village and Rs. 32 /day in urban area cannot be termed as
poor and would not be entitled for social security benefits and subsidized food given by the Center to BPL
Families.; Also see Utsa patnaik “How little can a person live on? ” Published in ‘The Hindu’ dated 30th
September 2011.
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are the starting point for any scheme for the benefit of workers. Therefore,
any law which does not deal with the issue of employment, its regulation,
basis.23
challenge and there are also issues relating to ‘leakage’. Another aspect is
present), then State Government and other agencies (and not the Central
23T.S. Sankaran, “The Unorganised Workers’ Social Security Act, 2008- A Critique” published in Lawyers
Magazine on Monday 16 February 2009.
24Babu Pottaveettil Remesh, “Extending social protection for unorganized sector workers in India: One
step forward, two steps backward?” Paper presented at 6th International Policy and Research Conference
on Social Security Luxembourg.
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schemes for the millions of exploited working class would depend upon the
sweet will of the Central and State Governments. There is no time bound
frame work for die Central and State Governments to formulate various
contingent aspect under the legislation. Even the basic issue of delivery of
The Act does not provide for a grievance redressal mechanism. The
acknowledged that the enactment of such an Act can be seen as one of the
social security benefits to the unorganised sector workers. It is hoped that the
Act will also enable the unorganised workers to organise around the Act,
which will give them voice and will help them enhancing their bargaining
power.
unorganized workers. It is for the working class and trade union movement
to take up the challenge to create waves of bigger and bigger struggles for a
that can cover not only social security but also wages, rights, job security
27V Shankar with inputs from B Sivaraman, “Unorganised Workers ’ Social Security Act 2008- A Beginning
for Bigger Struggles!" article published in “Liberation” Feb 2009.