Social Security Scheme – Pension, Insurance, Maternity Coverage for Workers

Dated: January 8, 2018 | Updated On: January 8, 2018 | By: Karan Chhabra | 2793 Views |
Social Security Scheme Workers

Central Government is going to launch Social Security Scheme for all Workers. Subsequently, this scheme would provide Pension, Disability and Death Insurance, Maternity Benefits, Medical & Unemployment Allowances to the workers. Moreover, this scheme will also include workers from the informal labour sector. Central govt. is going to launch this scheme in later half of FY 2018.

All the workers who are uncovered under the Employee Provident Fund Organization (EPFO) and Employee State Insurance Corporation (ESIC) will also get coverage.

This scheme will ensure social security of the labourers belonging to the poor sections of the society.

Need For Social Security Scheme

Central govt. is going to introduce this social security scheme for the following reasons:-

  1. In the EPFO and ESIC, the employer has to make contribution and an employee has to make equal amount of contribution.
  2. Subsequently, some employees are unable to contribute under the existing scheme.
  3. Accordingly, to cover the entire population especially the poor sections, govt. will launch this scheme.
  4. In this scheme, the State and the Central govt. will share the amount of contribution of the employee.

Central govt. will make utilization of the funds of the existing schemes after estimating the appropriate cost for this scheme. This is a major labor reform scheme of the country.

Merging of Labour Laws into Codes

Central govt. had made an announcement after their election win in 2014 that it will merge 44 labour laws into 4 codes. The name of 4 codes are specified below:-

Industrial Relations
Wages
Social Security
Safety, health and Working Conditions

As per an estimate, around 93% of the workforce across the country is in unorganized sector. In addition to this, these workers works in similar jobs but their working conditions, wages and security coverage are very low as compared to the formal sector. This scheme will bring more number of people in the formal economy and will help in their financial inclusion.

Progress of Social Security Scheme

Till date, central govt. has only introduced “Code on Wages Bill” which aims to fix a national minimum wage for the labourers. Moreover, this code amalgamate 4 labor laws which are as follows:-

  • Minimum Wages Act, 1948
  • Payment of Wages Act, 1936
  • Payment of Bonus Act, 1965
  • Equal Remuneration Act, 1976

Central govt. is on a path to introduce various labour reforms in the country as laborers form a very important part of GDP. Furthermore, govt. will push forward all the 4 codes in the FY 2018.

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