Welfare schemes for informal sector under progress | Latest News India - Hindustan Times
close_game
close_game

Welfare schemes for informal sector under progress

ByRajeev Jayaswal, Hindustan Times, New Delhi
Dec 15, 2021 12:56 AM IST

The Union government is working on a range of social security and welfare schemes for the informal sector ahead of Budget 2022.

The Union government is working on a range of social security and welfare schemes for the informal sector, particularly migrants and gig workers, covering basics such as food security, affordable accommodation, and medical benefits, higher order needs including skill upgradation, financial inclusion, and access to institutional credit, and which may also involve cash transfers to registered beneficiaries.

Finance minister Nirmala Sitharaman is starting virtual consultations on Budget 2022, officials said.
Finance minister Nirmala Sitharaman is starting virtual consultations on Budget 2022, officials said.

Although still work in progress, some of these measures may find a mention in Union Budget 2022-23, with the government having already created a database of at least 110 million registered migrant workers, three people aware of the matter said, requesting anonymity.

Hindustan Times - your fastest source for breaking news! Read now.

“The government is working on various welfare schemes, including creation of a social security fund to support welfare schemes for unorganised sector workers, including gig and platform workers,” one person said, adding that stakeholders’ feedback during the pre-budget consultations will be used to make such schemes inclusive and effective. Finance minister Nirmala Sitharaman is starting virtual consultations from Wednesday, according to an official tweet. “Finance minister Smt @nsitharaman will be holding her 1st Pre-Budget consultations with experts of Agriculture and Agro-processing industry tomorrow afternoon, 15th Dec 2021,” the finance ministry posted on Tuesday. The Union Budget for 2022-23 is expected to be presented on February 1, 2022.

Gig workers earn from work and activities outside of the traditional employer-employee relationship, and platform workers are engaged through an online platform by employers to provide specific tasks or services to customers. Gig workers such as freelancers, and platform workers earning through food delivery apps or cab aggregators, do not enjoy social security benefits like provident fund, gratuity and pension benefits provided to employees engaged in formal jobs.

The effective implementation of welfare schemes for the unorganised sector will be possible with the help of state governments through an Aadhaar-linked database of unorganised workers through e-Shram portal, the person cited above said. On August 26, the government launched the e-Sharam portal for registration of unorganised workers with an objective of providing benefits of welfare schemes to migrant workers even when they move from one place to other.

“The registration through Aadhaar may also help check influx of illegal migrants from porous international borders. Illegal migrants from neighbouring countries not only grab jobs meant for the Indian workforce, but also reduce their bargaining power as they are willing to work even below the official minimum wage,” a second person said.

According to the government’s estimates in 2016, there were over 20 million illegal migrants in India.

The government is working on a comprehensive social security plan to avoid a crisis such as the one witnessed after the lockdown was announced last year -- the mass migration of labour.

After the Covid-19 pandemic hit India in March 2020, a 68-day nationwide hard lockdown from March 25 was enforced that shut down factories and business establishments.

According to official data, around 11.43 million migrant workers returned to their home state during the pandemic period last year.

“We have no social security. We are often exploited in terms of revenue-share, working hours and unreasonable conditions imposed by the intermediaries, who are often big companies and multinationals. We want the government to adequately protect us,” Telangana Gig and Platform Workers’ Union treasurer K Prakash said.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On