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Drop the piecemeal ways to social security for workers
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Context
India is progressing toward a national social security scheme for gig and app-based workers, with proposals such as Ayushman Bharat coverage and a transaction-based pension policy pending Cabinet approval. While this marks a milestone in recognising non-traditional workers, it also exposes the fragmented, reactive, and piecemeal nature of India's broader social security architecture.
EXISTING SYSTEMIC SHORTFALLS
- Unratified Global Commitments: Despite being a founding ILO member, India has not ratified Convention No. 102 (1952), which outlines minimum social security standards, indicating a lag in aligning with global norms.
- Gaps in the Labour Code: The Code on Social Security, 2020, though well-intentioned, suffers from vague definitions, weakened protections, and poor implementation, falling short of creating a robust, inclusive safety net.
- Dysfunctional Welfare Boards: Audit data reveals poor fund utilization—e.g., ?70,744 crore in unspent cess across States, and ?221.8 crore in delayed remittances in Tamil Nadu—undermining the welfare objective of existing Boards.
LIMITATIONS OF SEGMENTED APPROACHES
- Arbitrary Worker Categorisation: Targeted schemes for niche groups (like Karnataka's beedi workers or gig workers) risk creating artificial boundaries between informal sectors, leaving many unprotected by eligibility thresholds.
- False Formalisation Expectations: Over-reliance on formalising gig work won’t inherently resolve informal sector issues; the gig economy itself lacks stable employer-employee relationships to anchor comprehensive benefits.
- Vulnerability to Technological Shifts: Piecemeal welfare frameworks are ill-equipped to adapt to future labour disruptions, such as AI-driven work displacement or platform-based jobs beyond gig work.
TOWARDS UNIVERSAL SOCIAL PROTECTION
- Strengthen the Existing Framework: The Social Security Code must be treated as a foundational floor, not the ceiling, from which States can build more inclusive and accessible systems.
- Integrated and Future-Proof Design: India should aim for universal social protection systems that transcend employment type and offer continuity across workforce transitions.
- Central-State Synergy: With the Code centralising oversight but allowing State-level innovation, this dual structure should be leveraged for decentralized, yet comprehensive, coverage.
Practice Question
Q. India’s approach to social security remains fragmented and exclusionary, particularly for informal and gig workers. Critically assess the limitations of the current framework and suggest a roadmap for a universal, inclusive social protection system in India.
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