The Ministry of Labour and Employment on November 25th 2024 has announced important initiatives to improve labour welfare and social security for workers in the informal and gig economy, reflecting the Government of India’s continued focus on worker protection and social inclusion.
Key Highlights:
1.Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Scheme for Unorganised Workers
Launched in March 2019, this pension scheme aims to provide old-age protection for unorganised workers. After a third-party evaluation by the Indian Institute of Public Administration, recommendations were made to increase the income limit from Rs. 15,000 to Rs. 18,000, and expand the eligibility age range from 18 to 50 years. These changes are set to extend the benefits to a broader group of unorganised workers.
2. Social Security for Gig Workers and Platform Workers
For the first time, the Code on Social Security, 2020 has specifically defined ‘gig workers’ and ‘platform workers’—those engaged in temporary or part-time jobs through digital platforms. This Code includes provisions for social security measures tailored to these workers, covering areas like life and disability insurance, health and maternity benefits, and old-age protection.
3. e-Shram Portal: A One-Stop Solution for Unorganised Workers
Launched on 21 October 2024, the e-Shram portal integrates various social security and welfare schemes in one digital platform. This enables unorganised workers to register and access benefits from multiple schemes, view their entitlements, and track the services they have availed, offering a streamlined, transparent solution.
4. Implementation of Labour Codes
The Government has made significant strides in the implementation of the Labour Codes. These four Codes (Wages, Industrial Relations, Social Security, and Occupational Safety, Health, and Working Conditions) are designed to enhance protections for all workers, particularly those in the unorganised sector.
Some key features include:
- Statutory Minimum Wages and Timely Payment: The Code on Wages, 2019 ensures minimum wages and timely wage payments, which are critical to ensuring fair compensation for workers across sectors.
- Extended Social Security Benefits: The Code on Social Security, 2020 seeks to extend comprehensive social security benefits to both organised and unorganised workers.
- Reskilling Fund: The Industrial Relations Code, 2020 introduces a fund for retraining workers who are laid off, offering financial support for reskilling.
- Ease of Compliance: To support business growth and job creation, the Labour Codes simplify compliance and reduce bureaucratic hurdles. A focus on technology, such as web-based inspections, will also enhance transparency and accountability in enforcement.
5. State and Union Territories Participation
Both Central and State Governments play crucial roles in implementing these Codes. A total of 32, 31, 31, and 31 States/Union Territories have already pre-published the draft rules for the Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020, and Occupational Safety, Health, and Working Conditions Code, 2020, respectively, laying the groundwork for their full enforcement.
Moving Forward:
These reforms are designed to provide comprehensive protection to workers, particularly those in the informal and gig sectors, which make up a significant portion of India’s workforce. By introducing technological advancements, offering social security benefits, and simplifying regulatory processes, the government aims to balance worker welfare with economic growth, creating a more inclusive and sustainable labour market.
The steps taken by the Ministry of Labour and Employment highlight the Government’s commitment to strengthening the social security framework and improving the working conditions for all workers in the country.
