Drop the Piecemeal ways to Social Security for Workers

The Central Government’s scheme for gig (app-based) workers is awaiting Cabinet approval.

Proposed benefits of the Initiatives

• Health Coverage: Health coverage under Ayushman Bharat
• Registration: Registration on the eShram portal for access to social security schemes
• Tracking: Transaction-based pension policy with a Universal Account Number (UAN) to track earnings across platforms and enable proportional contributions from multiple companies
• Significance: Recognises the multi-platform employment nature of gig work. Offers inclusive welfare, even without a formal employer-employee relationship Addresses the traditional exclusion of informal workers from social security frameworks

Challenges in Social Security

• Reactive Approach: India’s social security policies evolve in response to new employment models, rather than anticipating them. Need for proactive and adaptive frameworks for future worker categories
• Non-Ratification of ILO Convention: India has not ratified the ILO Convention No. 102 (1952) on minimum social security standards. Despite being an ILO founding member, this indicates lag in global compliance
• Issues with the Code on Social Security: Introduced under India’s Labour Codes initiative, the Code on Social Security has been criticised for ambiguous definitions, weakened protections, and implementation hurdles.
• Over-reliance : The Code on Social Security depends on Welfare Boards to disburse benefits
• RTI data: States underutilised ₹70,744.16 crore of construction cess collected from employers
• CAG Report 2024: 99 local bodies in Tamil Nadu delayed ₹221.8 crore in payments to the TNCWWB
• Case of Kerala: Even in Kerala (considered progressive in welfare)  Only 5 out of 16 boards functioning effectively (2016–17 data) Some boards had no reported beneficiaries
• Public Response: Repeated calls by activists and advocacy groups for Better governance of welfare boards Improved transparency and efficiency
• Limitations of Fragmentation: A segmented strategy risks failing to address the inherent precarity of all informal work and may lead to arbitrary distinctions between gig work and domestic work, as well as who deserves protection and who doesn’t.
• Over-reliance on Gig Work: The present discourse often frames gig work as the future of employment, based on the assumption that it will help formalise informal labour; however, this is an overly optimistic view.
  • As a focus on one segment fails to address systemic informality and risks ignoring broader reforms needed across diverse informal sectors.

Way Forward

• Targeted Relief: India’s fragmented, welfare-board-run model is said to offer targeted relief for specific worker groups.
  •  Example: Beedi and cigarette workers in Karnataka demanding revival of a defunct welfare fund
• Developing Resilience: As India aspires to create a ‘future-ready’ workforce, it must develop resilient social security systems and proactively address workforce and sectoral transitions.
• Code on Social Security: The Code on Social Security, despite delays in implementation, is likely to remain the foundational framework. It is centralised in design, yet allows State-level flexibility for tailored welfare measures.
• Strategic Approach: The most realistic way forward could involve treating the Code’s provisions as a baseline and using it as a foundation to build broader protections.
• Augmentation: To strengthen its impact, the Code should be augmented with stronger safeguards, inclusive and accessible mechanisms, and an emphasis on universal coverage, ensuring no worker is left behind.

Conclusion

The goal is to create a future-ready, adaptable, and inclusive social protection system that recognises diverse forms of employment, bridges the formal-informal labour gap, and ensures dignity and security for all workers, regardless of classification.