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Centre Forms Panels for Comprehensive Social Security Coverage for Workers
Context:
A two-day Chintan Shivir of Labour Ministers and Secretaries from the Union and State governments concluded on January 30, 2025.
About the Conference
- Formation of State Led committees: The Ministry of Labour and Employment, Government of India, has formed three state-led committees to develop a sustainable model for comprehensive social security coverage for workers, with a focus on the unorganised sector, including gig and platform workers.
- The committees are expected to present their findings by March 2025.
- Two- Day Workshop: This initiative follows a two-day workshop with Labour Ministers and Secretaries of States and Union Territories (UTs), aimed at addressing labour reforms and expanding social security schemes.
- The Chintan Shivir held on January 29-30, 2025, gathered stakeholders from all 36 States and UTs to deliberate on issues related to labour reforms, social security, and ease of doing business.
- Key outcomes include the formation of three committees comprising five states each, tasked with creating a holistic and sustainable model for social security coverage, especially for unorganised sector workers, including gig economy and platform workers.
- Labour Codes were discussed as a means to streamline labour laws, improve labour welfare, and reduce the compliance burden on employers.
Key Objectives and Discussions in the Shivir
- Formation of Committees for Social Security Model
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- The formation of three committees is a significant step towards designing a comprehensive social security model for workers.
- These committees are tasked with evaluating current welfare mechanisms and proposing a model that includes pension schemes, healthcare, life insurance, and accident insurance for workers, particularly in the unorganised sector.
- The final model is expected to be ready by March 2025 following consultations and deliberations between the Centre and states.
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- Social Security for Unorganised Sector Workers
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- Social security for unorganised sector workers was a key theme of the conference, with a focus on workers in construction, gig work, and the platform economy.
- The Building and Other Construction Workers (BOCW) cess was discussed, with concerns raised about the underutilisation of funds amounting to ₹70,744.16 crore. This fund has the potential to provide significant social security for construction workers.
- The e-Shram portal, which houses data on over 300 million unorganised workers, is being integrated with other government portals like Gati Shakti to improve logistics planning and enhance employment opportunities through better data access and targeted welfare schemes.
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- Labour Reforms
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- A major reform discussed was the shift in the role of labour inspectors to an inspector-cum-facilitator model, which aims to reduce the compliance burden on businesses.
- The goal of this reform is to create a business-friendly environment by simplifying regulatory requirements, particularly for MSMEs and start-ups, while ensuring adherence to labour laws and decent working conditions.
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- Integrating Welfare Schemes
- The workshop proposed the creation of a dedicated social security scheme for gig and platform workers, a large part of the unorganised sector that currently lacks adequate social security coverage.
- The scheme will focus on funding, data collection, and management strategies to ensure comprehensive coverage for this growing workforce.
Conclusion
- The Ministry of Labour and Employment has expressed a strong commitment to work closely with state governments to design and implement a comprehensive social security framework for workers.
- The formation of committees and proposed reforms reflect the government’s push towards a more inclusive and sustainable model benefiting both organised and unorganised workers.
This initiative, alongside ongoing labour reforms and efforts to improve ease of doing business, aligns with the government’s broader vision of fostering economic growth and enhancing labour welfare across the nation.
