Social security includes various government programs aimed at offering financial assistance, healthcare, and support to individuals and families facing life challenges. Its primary goal is to alleviate poverty, ensure access to essential needs, and foster economic and social stability. Key components of social security programs include pensions for retirees, unemployment benefits, disability support, and family allowances. These initiatives are crucial for enhancing citizens' well-being, protecting vulnerable populations, and promoting a more equitable society by providing a safety net during difficult times.
In India, an alarming 53% of the salaried workforce lacks adequate social security coverage. This significant gap, highlighted in the Periodic Labour Force Survey Annual Report 2021-22, calls for urgent reforms in the country’s social security framework. Many workers face challenges such as limited access to provident funds, pensions, and healthcare, emphasizing the need for transformative changes.
The survey reveals a harsh reality: only 1.9% of the poorest quintile of India's workforce receives any social security support. Additionally, gig workers, who make up about 1.3% of the labor force, find themselves in precarious situations with minimal access to benefits. This scenario indicates a significant failure to protect the most vulnerable segments of society.
India's social security system ranks poorly on the global stage. According to Mercer CFS, the country was placed 40th out of 43 countries in 2021. This ranking raises concerns about the effectiveness and accessibility of existing social security initiatives.
Although policies have been proposed to address these gaps, their effectiveness is often undermined by insufficient budget allocations and underutilization. For instance, the National Social Security Fund, established in FY11 to support unorganized sector workers, was allocated only ₹1,000 crore, falling far short of the required ₹22,841 crore, resulting in many schemes remaining inactive.
To instigate meaningful change, a holistic approach is essential. Efforts should focus on expanding contributions to the Employees’ Provident Fund Organization (EPFO) for formal workers while encouraging informal enterprises to contribute. This would help create a more inclusive support system.
The path to effective change involves extending social security coverage to all workers, regardless of their employment status. Policymakers should consider innovative solutions like a nationwide labor force card to include a wider range of workers. Existing initiatives, such as the Building and Other Construction Workers Schemes, could be expanded to cover additional worker categories.
Recognizing the unique challenges faced by female domestic workers and migrants is crucial. Expanding coverage to include services like childcare and creating organized networks for domestic workers can provide much-needed support to these individuals.
Transforming India's social security landscape requires a multifaceted strategy. By consolidating existing schemes, raising awareness, and adopting universal coverage, the nation can bridge the significant gaps in social security. As work dynamics evolve and new challenges arise, equitable growth and security must be the cornerstone of India's social security initiatives.
India's social security landscape comprises various initiatives aimed at protecting its diverse workforce. These programs address needs ranging from financial security during old age to healthcare coverage. Here are some key social security initiatives:
These programs play a vital role in ensuring financial stability, healthcare access, and social protection for India’s workforce. However, there is a pressing need for further expansion, effective implementation, and broader coverage to address the existing gaps in the social security framework.
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