Twitter
Advertisement

Social security for informal workers?

Get ready to shell out more. If the Centre approves it, very soon you will be paying a new cess to fund the UPA government’s plan to give social security cover to informal workers.

Latest News
article-main
FacebookTwitterWhatsappLinkedin
NEW DELHI: Get ready to shell out more. If the Centre approves it, very soon you will be paying a new cess to fund the UPA government’s plan to give social security cover to informal workers.
 
In its report to the Prime Minister, the National Commission for Enterprises in the Unorganised Sector (NCEUS), headed by Dr Arjun Sengupta, has proposed a National Minimum Social Security Scheme for all unorganised workers to the tune of Rs25,401 crores. The burden could be shared by the public either in the form of a social security tax or cess.
 
There is more. The employer would have to shell out Re 1 per day per worker, i.e. Rs365 in a year, for each informal/casual worker hired. Under the plan, the workers would get Identity Cards and the government, employers and workers will have to pay Re 1 each per day towards the scheme making it Rs 3 per day.
 
Since only 17 per cent informal workers (in non-agriculture sectors) have identifiable employers, their contribution may be paid by government and recouped through cess/tax, the Commission has said.
 
Below Poverty Line workers will be exempt from their contributions and the Central government will pay on their behalf. The remaining contribution will be shared by Central and state government in the ratio 75:25.
 
The Social Security Scheme would consist of health benefits to cover hospitalisation, sickness allowance and maternity benefits; life insurance to cover natural and accidental death; Provident Fund-cum-Unemployment Benefit for domestics helps, drivers, farmers, construction workers, etc.
 
The contributions are expected to generate a fund of Rs1095 per registered worker per year. The commission has proposed a monthly pension of Rs200 per month to old-aged workers.
 
The workers would also get hospitalisation benefit for self and family to the tune of Rs15,000, maternity benefit of Rs1000 per delivery, personal accident cover of Rs25,000 in case of death and disability cover @ Rs50 per day during hospitalisation up to 15 days.  The number of such workers is estimated to be 30 crores in 2005-06.
Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement