Social Security to Vulnerable sections
Kartavya Desk Staff
Syllabus: Social Justice
- •Source: ET*
Context: Karnataka has introduced new social security and welfare rules for unorganized transportation workers (under Karnataka Motor Transport and Other Allied Workers Social Security and Welfare Act 2024), aiming to cover approximately 5.4 million workers across various sectors. This initiative, a first in India, includes workers in ancillary roles such as tyre repair and wheel balancing.
What is Social Security?
Social Security refers to a system of public programs designed to provide economic support and protection to individuals and families facing various life circumstances that may lead to income loss or financial hardship. It typically includes measures such as pensions for retirement, disability benefits, unemployment benefits, healthcare coverage, maternity and parental benefits, and survivor benefits.
Issues with India’s Social Security system:
• Lack of Coverage: Around 53% of India’s salaried workforce and most gig workers lack access to social security benefits.
• Budgetary Allocation: Initial funding for the National Social Security Fund was inadequate, far below estimated needs.
• Poor Fund Utilization: Funds allocated often remain unspent or underutilized, indicating inefficiencies in management.
• Corruption and Leakage: Funds are sometimes misused or diverted, with instances of fraud and improper beneficiary management.
• Inadequate Benefits: Some schemes offer minimal benefits or have restrictive eligibility criteria, leaving out many deserving recipients.
• Budgetary Cuts: Reductions in allocations for key schemes like MGNREGA reflect lower priority for social welfare.
• Digital Divide: Transition to digital platforms for benefits distribution excludes those without access to technology.
• Informal Sector: The vast informal labour sector, comprising 91% of India’s workforce, lacks formal social security coverage and benefits.
Government of India’s schemes:
Steps to Improve Social Security in India:
• Universal Social Security: Consolidate existing schemes and provide universal coverage to all labourers.
• Expand EPFO Contribution: Increase contributions to EPFO for formal workers, both employers and employees.
• Government Support: Provide subsidies or assistance to vulnerable workers unable to contribute.
• Digitization and e-Shram Platform: Invest in digital platforms for efficient registration and delivery of social security services.
• Mandatory Social Security for Employers: Enforce mandatory social security entitlements for employees through their employers.
• Raise Awareness: Increase awareness about social security rights and available benefits among workers.
Insta Links:
• Assessing India’s Social Security Programs
Prelims Links:
Who among the following can join the National Pension System (NPS)? (UPSC 2017)
(a) Resident Indian citizens only
(b) Persons of age from 21 to 55 only
(c) All State Government employees joining the services after the date of notification by the respective State Governments
(d) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004
Ans: (c)
• Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? (UPSC 2016)
• It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers.
• Only one member of a family can join the scheme.
• Same amount of pension is guaranteed for the spouse for life after the subscriber’s death.
Select the correct answer using the code given below:
(a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3
Ans: (c)