{"id":39843,"date":"2025-03-26T20:15:15","date_gmt":"2025-03-26T14:45:15","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=39843"},"modified":"2025-06-24T16:42:49","modified_gmt":"2025-06-24T11:12:49","slug":"expanding-india-social-security-net","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/26-03-2025\/expanding-india-social-security-net","title":{"rendered":"Expansion of India\u2019s Social Security Net"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/Governance; Social Issues<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Recently, the <strong>Union Labour Minister<\/strong> highlighted that India has made <strong>remarkable strides in expanding its social security net<\/strong>, ensuring that a larger segment of the population benefits from welfare programs.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Overview of Social Security in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Social Security in India is a crucial aspect of economic and social policy aimed at providing financial and social protection to the country&#8217;s diverse population.<\/li>\n\n\n\n<li>It is primarily delivered through government initiatives, employer-based benefits, and social insurance programs.&nbsp;<\/li>\n\n\n\n<li>The legal framework governing social security includes:\n<ul class=\"wp-block-list\">\n<li>The Employees\u2019 Provident Funds and Miscellaneous Provisions Act, 1952;<\/li>\n\n\n\n<li>The Employees\u2019 State Insurance Act, 1948;<\/li>\n\n\n\n<li>The Maternity Benefit Act, 1961;<\/li>\n\n\n\n<li>The Unorganized Workers\u2019 Social Security Act, 2008;<\/li>\n\n\n\n<li>The Code on Social Security, 2020.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>These laws and policies cover organized and unorganized sector workers, providing them with financial security and welfare benefits.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Global Perspective and Sustainable Development<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Social protection is a recognized human right, essential for achieving the Sustainable Development Goals (SDGs).\n<ul class=\"wp-block-list\">\n<li><strong>Goal 1 of the SDGs<\/strong> aims <strong>to end poverty by 2030<\/strong> through national social protection systems, ensuring the coverage of vulnerable groups.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Article 22<\/strong> of the <strong>Universal Declaration of Human Rights<\/strong> emphasizes <strong>social security as a fundamental right<\/strong>, which is reaffirmed in the <strong>Social Protection Floors Recommendation<\/strong> by the <strong>ILO<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Social Security Schemes in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pension and Provident Fund Schemes:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Employees\u2019 Provident Fund (EPF):<\/strong> Managed by the EPFO under the Ministry of Labour and Employment, EPF is a <strong>mandatory savings scheme<\/strong> for employees in organizations with 20 or more workers.\n<ul class=\"wp-block-list\">\n<li>Both employer and employee contribute 12% of the employee\u2019s salary towards this fund.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>National Pension System (NPS): <\/strong>A voluntary retirement scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA).\n<ul class=\"wp-block-list\">\n<li>Available to both public and private sector employees.<\/li>\n\n\n\n<li>Provides tax benefits under Section 80CCD of the Income Tax Act.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Social Security for Unorganized Workers:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM):<\/strong> A pension scheme for unorganized sector workers earning less than \u20b915,000 per month.\n<ul class=\"wp-block-list\">\n<li>Requires a small monthly contribution (\u20b955-\u20b9200), with a matching contribution from the government.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Pradhan Mantri Kisan Maandhan Yojana (PM-KMY):<\/strong> A pension scheme for small and marginal farmers aged 18-40 years.<\/li>\n\n\n\n<li><strong>Building and Other Construction Workers\u2019 Welfare Scheme (BOCW): <\/strong>Provides health, education, and insurance benefits to construction workers.<\/li>\n\n\n\n<li><strong>Atal Pension Yojana (APY):<\/strong> A guaranteed pension scheme for low-income workers, encouraging financial security in old age.<\/li>\n\n\n\n<li><strong>Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):<\/strong> Life insurance coverage of \u20b92 lakh for individuals aged 18-50 at an annual premium of \u20b9436.<\/li>\n\n\n\n<li><strong>Pradhan Mantri Suraksha Bima Yojana (PMSBY):<\/strong> An accident insurance scheme covering \u20b92 lakh for accidental death and disability.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Health and Insurance Schemes:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Employees\u2019 State Insurance Scheme (ESI):<\/strong> Provides medical and disability benefits to employees earning up to \u20b921,000 per month.\n<ul class=\"wp-block-list\">\n<li>Covers expenses related to sickness, maternity, disablement, and death due to employment injury.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Rashtriya Swasthya Bima Yojana (RSBY): <\/strong>A government-funded health insurance scheme for BPL (Below Poverty Line) families.<\/li>\n\n\n\n<li><strong>Ayushman Bharat &#8211; Pradhan Mantri Jan Arogya Yojana (PM-JAY): <\/strong>The world&#8217;s largest health assurance scheme providing free medical coverage of up to \u20b95 lakh per family per year for economically disadvantaged groups.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Maternity and Disability Benefits:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Maternity Benefit Act, 1961:<\/strong> Provides paid maternity leave of 26 weeks for women working in establishments with 10 or more employees.<\/li>\n\n\n\n<li><strong>Indira Gandhi National Disability Pension Scheme (IGNDPS):<\/strong> Provides financial assistance of \u20b9300-\u20b9500 per month to disabled individuals below the poverty line.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Employment and Labor Welfare:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): <\/strong>Guarantees 100 days of wage employment to rural households, strengthening income security.<\/li>\n\n\n\n<li><strong>e-Shram Portal:<\/strong> A national database for unorganized workers, enabling targeted delivery of social security benefits.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Recent Expansions in Social Security<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Extending Benefits to Gig and Platform Workers:<\/strong> With the rise of the gig economy, the government has proposed bringing<a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/11-06-2025\/rapid-growth-gig-workers-india\"> gig workers<\/a> (such as food delivery agents and cab drivers) under the social security umbrella through platforms like e-Shram and the Social Security Code.<\/li>\n\n\n\n<li><strong>Digital and Financial Inclusion:<\/strong> The <strong>Jan Dhan-Aadhaar-Mobile (JAM) Trinity<\/strong> has strengthened the delivery of welfare benefits, ensuring direct benefit transfers (DBT) to beneficiaries, reducing leakages, and improving transparency.<\/li>\n\n\n\n<li><strong>Ration Card Portability under \u2018One Nation, One Ration Card\u2019 (ONORC):<\/strong> It enables migrant workers to access subsidized food grains anywhere in India.<\/li>\n\n\n\n<li><strong>Strengthening Healthcare and Insurance for Informal Workers:<\/strong> The government has been pushing for the inclusion of informal workers in health schemes, ensuring access to PM-JAY and ESIC facilities.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges in Expanding the Social Security Net<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Underestimation of Coverage: <\/strong>The ILO report <strong>does not account for in-kind benefits<\/strong> like food security and housing or state-administered schemes.\n<ul class=\"wp-block-list\">\n<li>The actual coverage is expected to be higher once these factors are included.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Low Coverage in the Unorganized Sector:<\/strong> Over 90% of India&#8217;s workforce is in the unorganized sector, yet only a small fraction benefits from social security schemes.<\/li>\n\n\n\n<li><strong>Lack of Awareness and Accessibility:<\/strong> Many eligible beneficiaries remain unaware of existing schemes, leading to lower enrollment rates.<\/li>\n\n\n\n<li><strong>Funding and Implementation Bottlenecks:<\/strong> The large financial requirement for social security programs poses budgetary constraints, while last-mile implementation remains a challenge, especially in rural areas.<\/li>\n\n\n\n<li><strong>Fragmented Coverage<\/strong>: Despite multiple schemes, many workers\u2014especially in the unorganized sector\u2014remain outside the formal security net.<\/li>\n\n\n\n<li><strong>Bureaucratic Hurdles and Corruption:<\/strong> Delays in processing claims and leakages in funds allocation reduce the efficiency of these programs.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Forward<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Integration of Schemes:<\/strong> A unified social security framework can enhance efficiency and accessibility.<\/li>\n\n\n\n<li><strong>Technology-Driven Delivery:<\/strong> Expanding digital enrollment, biometric authentication, and mobile applications can improve outreach.<\/li>\n\n\n\n<li><strong>Strengthening Public-Private Partnerships:<\/strong> Involving the private sector in providing pension and insurance solutions can enhance social security coverage.<\/li>\n\n\n\n<li><strong>F<\/strong><strong>ormalizing the Unorganized Sector:<\/strong> Incentivizing employers to register workers in social security schemes.<\/li>\n\n\n\n<li><strong>Simplification of Processes:<\/strong> Reducing paperwork and making enrollment procedures more user-friendly.<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/www.thehindu.com\/news\/national\/indias-social-security-net-expands-mansukh-mandaviya\/article69373941.ece\" rel=\"nofollow noopener\" target=\"_blank\">Source: TH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, the Union Labour Minister highlighted that India has made remarkable strides in expanding its social security net, ensuring that a larger segment of the population benefits from welfare programs.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-39843","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=39843"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39843\/revisions"}],"predecessor-version":[{"id":46107,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39843\/revisions\/46107"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=39843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=39843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=39843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}