The Government constituted the National Commission for Enterprises in the Unorganised Sector (NCEUS) under the chairmanship of Dr. Arjun Sengupta on 20.09.2004.  The Commission completed its term on 30.04.2009.  The Commission submitted its Reports including Report on Social Security for Unorganized Workers.  The Report on Social Security for Unorganised Workers was submitted in May, 2006. 

Salient features of the Report of National Commission for Enterprises in the Unorganised Sector on Social Security for unorganized sector:

          The National Commission for Enterprises in the Unorganised Sector (NCEUS) in its report on Social Security for Unorganised Workers had recommended a legislation for the social security for unorganised workers. The salient features of the proposed legislation are:

Social Security Benefits:

      The Central Government to formulate a scheme to be called National Social Security Scheme for unorganised workers consisting of following minimum social security benefits:

(i)    hospitalisation cover up to Rs.15,000 and  sickness cover for the registered worker during hospitalization at Rs.50 per day for a maximum period of 15 days.

 (ii)  Maternity benefit of Rs.1,000 (maximum) per delivery

(iii)  Personal accident cover in the event of death of earning head of family to the tune of Rs.25,000

(iv)  Two options for old age security: (a) Monthly old age pension of Rs.200 per month to all poor (BPL) old aged (60+) workers, and

(v) Provident Fund to all other workers (who are required to contribute to the national social security scheme).

         The State Government may formulate schemes relating to:

·        Provident fund

·        Employment injury benefits

·        Housing schemes

·        Educational schemes for children of workers

·        Skill upgradation; etc.

·        Funeral Assistance

·        Marriage of daughters; and

·        Any other schemes to enhance the socio-economic security of unorganized workers.

Setting up of National Social Security Fund:

(a)     Grants and loans from the Central Government.

(b)   Contribution from workers, employers, Governments for the specified national minimum social security given as under :

(i)      Rs. 1/- per day for BPL workers by the Central Government

(ii)    Rs. 1/- per day by the employer wherever identified. For those where employer is not identified, the contribution to be shared by the Central Government & State Government in the ratio of 3:1

(iii)   Rs. 0.75 per worker per day by the Central Government and Rs. 0.25 per worker per day by the State Government.

 

On the basis of the recommendations of the Commission, the Government enacted, ‘Unorganised Workers’ Social Security Act, 2008 envisaging formulation of social security schemes for these workers.

The Minister of State for Labour and Employment Shri Harish Rawat gave this information in reply to a question in the Lok Sabha today.

The ‘Unorganised Workers’ Social Security Act, 2008 provides for constitution of National Social Security Board which shall recommend social security schemes viz life and disability cover, health and maternity benefits, old age protection and any other benefit as may be determined by the Government for unorganized workers. 

The salient features of the Act are as under:

·        Section (2) provides for the definitions, including those relating to unorganised worker, self-employed and wage worker.

·        Section 3 (1) provides for formulation of schemes by the Central Government for different sections of unorganised  workers on matters relating to (a) life and disability cover; (b) health and maternity benefits; (c) old age protection (d) any other benefit as may be determined by the Central Government.

·        Section 3 (4) provides formulation of schemes relating to provident fund, employment injury benefits, housing, educational schemes for children, skill upgradation, funeral assistance and old age homes by the State Governments.

·        Section 4 relates to funding of the schemes formulated by Central Government.

·        Section 5 envisages constitution of National Social Security Board under the chairmanship of Union Minister for Labour & Employment with Member Secretary and 34 nominated members representing Members of Parliament, unorganised workers, employers of unorganised workers, civil society, Central Ministries and State Governments.

·        Provision for adequate representation to persons belonging to the Scheduled Castes, the Scheduled Tribes, the Minorities and Women.

·        The functions of  National Board, inter-alia, include: to recommend to the Central Government suitable schemes for different sections of unorganised workers; monitor the implementation of schemes and advise the Central Government on matters arising out of the administration of the Act.  

·        Section 6 has provision for constitution of similar Boards at the State level.

·        Section 7 relates to funding pattern of the schemes formulated by the State Governments.

·        Section 8 prescribes record keeping functions by the District Administration. For this purpose, the State Government may direct (a) the District Panchayat in rural areas; and (b) the Urban Local Bodies in urban areas to perform such functions.

·        Section 9 provides for setting up of constitution of Workers’ Facilitation Centre to (a) disseminate information on social security schemes available to them (ii) facilitate the workers to obtain registration from district administration and enrollment of unorganised workers.

·        Section 10 provides for eligibility criteria for registration as also the procedure for registration under the Act.

·        Sections 11-17 contain miscellaneous provisions for implementing the Act.

 

The Rules under the Act have been framed and the Act came into force vide notification dated 14^th May, 2009.  The National Social Security Board was constituted on 18.08.2009 and held its meetings to consider extension of RSBY to other unorganized workers and formulation of other social security schemes for these workers. The Board has recommended that social security schemes viz Rashtriya Swasthya Bima Yojana (RSBY) providing health and maternity benefits, Janshree Bima Yojana (JBY) providing death and disability cover and Indira Gandhi National Old Age Pension (IGNOAP) providing old age pension may be extended to certain categories of unorganized workers.

Recognizing the need for providing social security to workers in the unorganised sector, and as a follow up to the Unorganised Workers’ Social Security Act, 2008,  it has been decided to set up a National Social Security Fund for unorganised sector workers with an initial allocation of Rs  1000 crore.  This fund will support schemes for weavers, toddy tappers, rickshaw pullers, Beedi workers etc. As a follow up of this, the Ministry of Labour and Employment has set up:

1.      A Task Force for suggesting schemes for domestic workers.  The Task Force has submitted its report to the Government.

2.      A Task Force for suggesting schemes to provide social security to rickshaw pullers, street vendors and rag pickers.

3.      A Task Force to suggest scheme for Pension/Provident Fund for unorganised workers.

4.      A Task Force for suggesting scheme for toddy tappers and Beedi workers.

 

YSK/PM