The Future of Work: Shram Shakti Niti 2025 and Informal Workers

INTRODUCTION

Across many sectors, workers face unstable employment, job reclassification, and the loss of benefits. Informality remains widespread, and forms of forced or coercive work still persist. The Draft Shram Shakti Niti 2025 promises a fair, inclusive, and future-ready labour system, integrating social security, safety, skill development, and digital tools. However, the key question is delivery — will these protections truly reach informal, gig, and low-literacy workers, or remain limited to digital dashboards? The outcome depends on effective funding, strong enforcement, and the inclusion of worker voices.

CURRENT STATUS OF INDIA’S LABOUR FORCE

• About 90% of workers are informally employed (ILO, 2024).
• Nearly 11 million people live in modern slavery in India.
• Female labour force participation is 33.7%, with a target of 35% by 2030.
• Approximately 12 million workers are engaged in gig work; around 400 million work in the informal economy.
• Skills–jobs mismatch: Graduate-job mismatch stands at 91.75%.
• Digital access constraints: Low household literacy (around 38%) limits the use of digital systems.

CONSTITUTIONAL PROVISIONS FOR LABOUR PROTECTION

Fundamental Rights

Article 19(1)(c): Guarantees the right to form associations and unions, including trade unions.

Article 21: Ensures the right to life, interpreted to include the right to a dignified livelihood, fair wages, and safe working conditions.

Article 23: Prohibits human trafficking and forced labour.

Article 24: Prohibits the employment of children below 14 years in hazardous work.

Article 17: Prohibits untouchability, protecting workers from caste-based discrimination and exploitation.

Directive Principles of State Policy

Article 38: Directs the state to promote welfare by ensuring social, economic, and political justice.

Article 39: Ensures adequate means of livelihood and equal pay for equal work for both men and women.

Article 41: Guarantees the right to work, education, and assistance in cases like unemployment, old age, or disability.

Article 42: Calls for humane working conditions and maternity relief.

Article 43: Aims to secure a living wage for all workers.

Article 43A: Provides for worker participation in the management of industries.

DRAFT SHRAM SHAKTI NITI 2025 (NATIONAL LABOUR & EMPLOYMENT POLICY)

The Draft Shram Shakti Niti 2025 is a national labour and employment policy that envisions a “fair, inclusive, and future-ready labour ecosystem,” aligning constitutional guarantees with the rapidly evolving world of work.

Key Features

1. Universal Social Security Coverage

Proposes a portable Universal Social Security Account integrating the EPFO, ESIC, PM-JAY, e-SHRAM, and State Boards. This will allow benefits like health, pension, maternity, accident, and life insurance to move with workers across jobs and sectors.

2. Employment Facilitation & Future Readiness

The Ministry will act as an employment facilitator, using the National Career Service (NCS) as Digital Public Infrastructure for job-matching, credential verification, and skill alignment. It focuses on Tier-II/III cities and MSMEs, linking skill development directly to employment.

3. Occupational Safety, Health & Humane Working Conditions

Commits to enforcing the Occupational Safety, Health and Working Conditions Code, 2020 through risk-based audits, gender-sensitive standards, and the goal of achieving “near-zero fatalities by 2047,” in alignment with ILO norms.

4. Women’s & Youth Empowerment

Targets 35% female labour force participation by 2030 through affordable childcare, flexible gig opportunities, equal pay, and apprenticeships. It also promotes youth entrepreneurship and better skill-job alignment to address a 91.75% mismatch.

5. Technology, Green Jobs & Just Transition

Encourages green technology jobs, reskilling for climate transitions (e.g., coal sector workers), and AI-enabled workplace safety under SDG 13. It emphasizes a “just transition” for affected workers.

6. Ease of Compliance & Formalisation

Introduces a single-window digital compliance system for MSMEs and aims to simplify registration, strengthen inspections, and accelerate formalisation of the workforce.

7. Governance & Data-Driven Monitoring

Proposes a Labour & Employment Policy Evaluation Index (LPEI), annual national reports, and real-time dashboards integrated with Digital India and NEP to improve transparency, monitoring, and accountability.

CONCERNS RELATED TO THE POLICY

• Employer-centric approach: Current reforms often prioritise employer convenience over worker rights, weakening protections under Articles 14, 16, and 23.
• Unfunded social security: The universal account lacks clear funding mechanisms or mandates for employer contributions.
• Digital exclusion: Heavy reliance on digital systems risks excluding low-literacy, female, and rural workers without offline access options.
• Weak safety enforcement: “Near-zero fatalities by 2047” lacks binding penalties, inspectors, and clear timelines.
• AI bias risks: AI-driven job platforms need bias audits to prevent caste or gender discrimination.
• Gig worker vulnerability: Lack of wage protections or transition benefits keeps gig workers precarious.
• Women’s participation targets without tools: The 35% goal lacks strong maternity and childcare support for informal workers.
• Data surveillance concerns: Policy dashboards may risk data misuse and hinder worker privacy under weak DPDP enforcement.

WAY FORWARD

• Fund universal social security through mandatory employer and state contributions.
• Strengthen safety enforcement with penalties, trained inspectors, and time-bound goals.
• Ensure offline and assisted access for all workers, especially women and seniors.
• Apply wage floors and define transition benefits for gig and platform workers.
• Mandate independent AI audits and bias safeguards in job-matching systems.
• Institutionalise worker participation in policymaking and grievance systems.

CONCLUSION

The draft integrates social security, safety, skills, and data under one platform. However, real progress depends on adequate funding, effective enforcement, offline accessibility, unbiased algorithms, and worker participation. With these in place, the policy can transform India’s labour landscape; without them, digital dashboards may grow—but worker security will not.

QUESTION FOR PRACTICE

Examine the key challenges in implementing the Draft Shram Shakti Niti 2025 as an inclusive and enforceable labour policy for India’s informal and gig workforce.