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Comprehensive Social Security System

India's total workforce stands at around 500 million. A little over 10% of this is in the organised sector, where workers enjoy social security of some sort under EPFO and ESIC. But a major portion of the total workforce is still in the unorganised sector, where workers do not often get even the minimum wage and lack any kind of social security cover.

Thus the labour ministry has proposed a comprehensive social security system to provide retirement, health, oldage, disability, unemployment and maternity benefits to 50 crore workers in the country comprising of workers in the unorganised sector, destitute and people below the poverty line.

The scheme will be implemented in three stages over a span of 10 years. The first phase will aim at providing health security and retirement benefits to all workers. This stage will incur a cost of Rs. 18,500 crores. Next, the second stage will add unemployment benefits to the scheme. Finally, in the third phase, other welfare measures will be added.

The scheme will be implemented in four tiers.
• The first tier will constitute of the destitute and people below the poverty line. Since such people cannot contribute much to their own security, the entire cost will be financed by the government.
• Secondly, the second tier will comprise of workers in the unorganised sector who may have some contributory power but are not self-sufficient to do so.
• Next, the third tier will include people who have the capability to make an adequate contribution to the schemes either by themselves or jointly with their employers.
• Lastly, the fourth tier will be made up of affluent and prosperous people who have the capacity to take care of contingencies as and when they arise.

Practice question:

1) Which of the following are the autonomous organizations associated with the Ministry of Labour and Employment?

1. Employees State Insurance Corporation
2. Central Labour Institute
3. National Institute for Career Service
4. V. V. Giri National Labour Institute


a) 1 and 3

b) 1, 3 and 4

c) 1, 2 and 3

d) All

Ans: b
Exp: Autonomous organisations
• Employees State Insurance Corporation
• Employees Provident Fund Organisation
• Central Institute for Research & Training in Employment Service
• National Institute for Career Service
• V. V. Giri National Labour Institute
• Central Board for Workers Education



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