Social Security Cover 2018 – Rs.2 lakh Crore Social Security Plan for 50 Crore Indian Workers by PMO

Published Date - 25 April 2018 04:40:20 Updated Date - 25 April 2018 04:40:54

The Prime Minister’s Office (PMO) has given its approval to the labour ministry proposal on universal social security cover for 500 million workers, including those in the farm sector, seeking to start the process of putting in place a more secure welfare net a year before the general election. This social security plan will cover 5 crore Indian workers including those in farm sectors. This scheme includes social security system to provide retirement, health, old-age, disability, unemployment and maternity benefits for workers. Central govt. will roll-out this scheme in 3 phases with an outlay of Rs. 2 Lakh crore on the basis of universal social security code.

The finance and labour ministries will work out the details of the scheme that will require nearly Rs 2 lakh crore when fully rolled out for the lower 40% of the country’s total workforce. The remaining 60% of the workforce is expected to make contributions out of their own pocket, either fully or partially. “PMO has asked labour ministry to go ahead with the social security cover at the recent high-level meeting with them where labour ministry officials made a presentation on the universal social security code,” a senior government official told ET, requesting anonymity. “Even the finance ministry is on board with the idea.”

Social Security Scheme will mostly benefit the lowest 40% population of the country and is a boon for poor workers. Central govt. will classify the beneficiaries in 4 tiers and will put in place a more secure welfare net for laborers. Farmers will also get included in this scheme.

Phases of Social Security Cover –

Labour Ministry has given an advice to the Finance Ministry to roll-out this scheme gradually in phases. Initially, social security cover scheme will require a significantly lesser amount while the fund allocation can be increased afterwards over next 5-10 years to make it universal. This scheme will have a major impact on the lives of poor people which are its first beneficiaries and will get rolled out in 3 phases:-

  • First Phase – In this phase, Social Security Scheme will cover all the workers getting the bare minimum coverage which includes health security and retirement benefits.
  • Second Phase – This phase will see the addition of unemployment benefits to the benefits of 1st phase.
  • Third Phase – All other welfare measures will get included in the last phase to provide complete social security benefits to the workers.
  • After the successful roll-out of social security scheme in 3 phases over next 10 years duration, govt. will make it universal.
 

Beneficiaries of Social Security Scheme –                                    

Central govt. will classify the 500 million (5 crore) beneficiaries in 4 tiers:-
Classification of Beneficiaries

Tier

Beneficiaries

1st Tier

Destitute and Below Poverty Line (BPL) people who are unable to contribute for security payments with the cost being borne entirely by the govt. through tax based schemes.

2nd Tier

Unorganized sector workers who can contribute some amount but are not self sufficient. These may be covered under various subsidized schemes.

3rd Tier

All those people who can make necessary contributions either by themselves or jointly with their employers in order to become self sufficient.

4th Tier

Relatively rich and prosperous people who can make their own provisions to meet emergencies or risks as it occurs.

This social security system will provide a relief to the millions of under-privileged workers.

Social Security Plan for Workers (Including Farmers):-

Finance Ministry and Labour Ministry together will work out on the details of social security scheme. This social security plan requires around Rs. 2 lakh crore on complete roll-out for the lower 40% of total workforce in India. The remaining 60% of the total workforce will have to make partial or full contribution from their own pocket.

Prime Minister Office (PMO) has directed Labour Ministry to carry forward the social security cover at recent high-level meeting. In the meeting, officials gave a presentation on the universal social security code. In addition to this, Finance Ministry is also agreed to implement this scheme for labourers / workers.

This social security scheme will streamline the welfare benefit delivery mechanism to ensure that all the workers across India are provided Social Security Benefit.

 


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