Social Protection and Social Security Framework in India: A Focus on the Unorganised Sector

 

Synopsis:

F Introduction

F Concept of Social Protection

Ø  Components of Social Protection

Ø  Purpose of Social Protection

Ø  Social Protection in the Indian Context

F Categories of Vulnerable Workers

Ø  Categories of Informal and Unprotected Workers in India

F Unorganised Sector in India

F Role of the United Nations Organisation (UNO) in Social Protection

Ø  UNO Agencies Involved

F Constitutional Provisions

F Concurrent List and Legislative Powers

F Difference between Organised and Unorganised Sectors

F Social Security Laws in India

F Conclusion

 

Introduction

Social protection is a key part of a fair and inclusive society. It includes a wide range of public policies and programs that aim to protect individuals and families from economic risks such as poverty, unemployment, illness, disability, and old age. The main goal is to ensure that people have access to basic needs and a minimum standard of living, even during difficult times. In India, where a large part of the workforce is employed in informal and insecure jobs, social protection becomes even more important. It helps vulnerable groups through a mix of laws, welfare schemes, and employment programs, ensuring income security, equal opportunities, and human dignity for all.

 

Concept of Social Protection

Social protection is a wide set of public policies, schemes, and programs aimed at reducing poverty, social exclusion, and economic insecurity. It is designed to provide support to individuals and families, particularly the poor and vulnerable, to help them cope with various life risks and uncertainties. These risks may include unemployment, sudden loss of income, illness, disability, maternity, or old age. By offering income security and ensuring access to essential services such as healthcare, food, education, and housing, social protection acts as a safety net during difficult times. It not only helps individuals survive during crises but also promotes long-term human development, social justice, and inclusive economic growth. In essence, social protection ensures that no one is left behind, especially during times of economic hardship or personal vulnerability.

 

F Components of Social Protection:

Ø  Social Insurance

Social insurance is a system where workers and their employers pay money regularly into a fund. In return, workers get help when they face problems like illness, job loss, old age, or having a baby. Examples include health insurance, pension schemes, and maternity or unemployment benefits. These are mostly for people working in formal jobs.

Ø  Social Assistance (Welfare Schemes)

Social assistance means free help from the government for poor and needy people. It is paid for through taxes and does not require any payment from the person receiving it. Examples are free food through the Public Distribution System (PDS), pensions for the elderly, scholarships for poor students, and free school meals.

Ø  Labour Market Programs

These are government efforts to help people get jobs or learn new skills. One big example is MGNREGA, which gives 100 days of paid work every year to rural families. Other programs help people with job training and skill development to improve their employment chances.

Ø  Income Security

Income security means making sure people have some money to live on when they can’t work. This could be during retirement, sickness, maternity leave, or if they lose their job. It helps people continue their lives without falling into poverty during tough times.

 

F Purpose of Social Protection

The main purpose of social protection is to reduce poverty, protect people from hardships, and ensure a basic standard of living for everyone, especially the poor and vulnerable. It helps individuals during difficult times like illness, unemployment, old age, or disasters by providing financial support, food, healthcare, and job opportunities. Social protection also promotes equality, social justice, and inclusive growth by supporting people who are at risk and helping them live with dignity.

F Social Protection in the Indian Context

In India, social protection is provided through a mix of laws, welfare schemes, and government programs aimed at reducing poverty and supporting vulnerable groups. It covers both formal and informal workers, though the majority of India’s workforce is in the unorganised sector with limited access to social security. The government offers social insurance schemes like EPF and ESI for formal workers, and social assistance programs like the Public Distribution System (PDS), old-age pensions, and MGNREGA for the poor and unorganised workers. Initiatives like e-Shram and the Social Security Code, 2020 aim to bring unorganised workers under formal protection. Despite progress, challenges like poor coverage, lack of awareness, and implementation gaps remain.

 

Categories of Vulnerable Workers

 

Vulnerable workers are those who have little job security, low income, and limited or no access to social protection. In India, they are mainly found in the unorganised sector and can be grouped into four main categories

Ø  Based on Occupation

These are people who do hard, physical jobs like farming, building houses, selling things on the street, or working in homes. They usually earn low wages and don’t get any benefits like health care or job security.

Ø  Based on Nature of Employment

These workers have no fixed job. They are hired for short periods or on a daily basis. They don’t have written job contracts, so they can lose their jobs anytime and don’t get things like paid leave or insurance.

Ø  Specially Distressed Categories

These are people facing very tough situations in life. Some are forced to work to repay debts, some have left their homes to find work in other places, and some have lost everything in floods or other disasters. They need special help and protection.

Ø  Service Categories

These workers provide everyday services that people need, like cutting hair, pulling rickshaws, collecting garbage, or helping women during childbirth. Even though their work is important, they are often paid very little and not treated fairly.

 

F Categories of Informal and Unprotected Workers in India:

Ø  Home-Based Workers

Home-based workers do their jobs from their homes. They usually make goods or provide services for companies or middlemen. These workers are often paid based on the number of items they produce (called piece-rate work).
Examples: Weavers, handicraft makers, people stitching clothes or assembling items at home.

Ø  Self-Employed Workers

Self-employed workers run their own small businesses or work independently without a boss or employer. They earn by selling products or services directly to customers and usually do not receive any benefits like paid leave, insurance, or pension.
Examples: Street vendors, small shopkeepers, auto-rickshaw drivers, tailors, and repair workers.

Ø  Unorganised Workers

Unorganised workers are those who do not have formal job contracts and are not protected by any social security laws. Their work is often low-paid, unsafe, and without job security or benefits.
Examples: Agricultural labourers, construction workers, domestic workers, helpers in small shops or roadside eateries.

Ø  Workers in the Organised Sector Not Covered by Social Security

Even in the formal (organised) sector, some workers do not get social security benefits. These are usually people hired on a contract, temporary, or casual basis. They are not included under the following six major social security laws:

1)       Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 – Retirement savings

2)       Employees’ State Insurance Act, 1948 – Health and medical care

3)       Maternity Benefit Act, 1961 – Paid maternity leave

4)       Payment of Gratuity Act, 1972 – Retirement benefit after long service

5)       Workmen’s Compensation Act, 1923 – Compensation for injury or death at work

6)       Payment of Bonus Act, 1965 – Annual bonus to eligible workers

 

Unorganised Sector in India

The unorganised sector in India includes small jobs and businesses where workers don’t have proper job contracts, fixed working hours, or benefits like health insurance, pensions, or paid leave. These workers often earn low wages and have no job security.

It includes people like farmers, construction workers, street vendors, shop helpers, domestic workers, and small tailors. Most of them work in poor conditions and are not protected by any labour laws. This sector covers around 90% of India’s workforce, but many workers don’t get any government help because of poor awareness or lack of records. The government has started some schemes, like the Unorganised Workers’ Social Security Act, 2008, to help them, but more support is still needed.

Ø  Lack of formal contracts

Ø  Irregular wages

Ø  No job security

Ø  No access to health care, pensions, or insurance.

 

Role of the United Nations Organisation (UNO) in Social Protection

The United Nations Organisation (UNO) plays a vital role in promoting social protection and security globally, especially for poor, vulnerable, and marginalized populations. The UNO works through its various specialized agencies, programs, and conventions to help countries, including India, design and implement social welfare systems.

Ø  Setting Global Standards

The UNO, through the International Labour Organization (ILO), creates international rules for fair working conditions and social security. One key rule is ILO Convention 102, which sets the minimum standards for things like health care, pensions, and help during unemployment.

Ø  Technical Assistance and Guidance

The UNO helps countries by giving expert advice to improve their social protection systems. Agencies like UNDP and UNICEF support governments in running programs for health, education, child care, and poverty reduction.

Ø  Promoting Social Protection Floors

UNO agencies like ILO and WHO introduced the idea of Social Protection Floors under Recommendation No. 202. This means every country should make sure people have basic income, health care, and essential services, especially the poor.

Ø  Monitoring and Reporting

The UNO also checks how well countries are doing in providing social protection. It publishes reports like the World Social Protection Report to show what is working, where there are problems, and how many people are still left out.

Ø  Supporting Sustainable Development Goals (SDGs)

The UNO’s SDG Goal 1.3 encourages all countries to build strong social protection systems. The aim is to cover everyone, especially the poor and vulnerable, with support by the year 2030.

F UNO Agencies Involved:

1)       ILO (International Labour Organization)

2)       UNDP (United Nations Development Programme)

3)       UNICEF (United Nations Children's Fund)

4)       WHO (World Health Organization)

5)       UN Women (for gender-sensitive social protection)

6)       FAO (for rural and agricultural workers)

 

Constitutional Provisions

The Constitution of India supports social protection and welfare through the Directive Principles of State Policy (Part IV). These are not laws but important guidelines for the government to make fair and just policies for the people.

Ø  Article 38 – Promotion of Welfare of the People

Article 38 directs the State (Government) to make efforts to ensure the welfare of all citizens. This includes creating a fair society where people can live with dignity and without discrimination. It specifically tells the State to work towards reducing inequality in income, status, and opportunities, it’s between individuals or between different groups living in rural and urban areas.
In simple terms, the government should make policies that help poor and backward sections of society catch up with the rest, ensuring social and economic equality.

Ø  Article 39A – Equal Justice and Free Legal Aid

This article ensures that every person, rich or poor, gets equal justice under the law. It also says that if someone is too poor to afford a lawyer or court fees, they should be given free legal aid so that they are not denied justice due to lack of money.
The main goal is to make the justice system accessible to all, especially to the poor, women, and weaker sections who may not know how to fight for their rights.

Ø  Article 43 – Living Wage, Decent Work, and Social Security for Workers

Article 43 focuses on the rights of workers. It says that the State should make sure that all workers in cities or villages are paid a living wage, not just minimum wage. A living wage is enough to cover basic needs like food, shelter, health care, and education.

The article also asks the government to provide workers with decent working conditions, rest, leisure, and social security such as pensions, maternity benefits, and health care.

This article aims to protect the dignity of labour and ensure that workers are not exploited

 

Concurrent List and Legislative Powers            

The Concurrent List (List III) in the Seventh Schedule of the Constitution empowers both the Central and State Governments to enact laws on:

1)      Labour welfare

2)      Social security

3)      Education

4)      Marriage and divorce

5)      Forests

6)      Trade unions

This allows for a dual system of social protection, with schemes being implemented at both central and state levels, although often leading to coordination challenges.

 

Difference between Organised and Unorganised Sectors

 

Organised Sector

Unorganised Sector

 

1)      Comprises enterprises where employment is regular and the job is secure.

 

1)      Comprises small units where jobs are irregular and job security is not assured.

2)      Companies are registered with the government and follow proper rules and laws.

2)      Companies are often not registered and do not follow rules properly.

3)      Employees have fixed working hours and are paid for overtime.

3)      Workers have uncertain hours, get low wages, and no overtime payment.

4)      Employees receive social security benefits like pension, provident fund, paid and sick leave.

4)      Workers do not receive benefits like PF, pension, or leave for illness.

5)      Workers are paid a regular and fixed salary.

5)      Workers are paid irregularly and don’t have fixed wages.


Social Security Laws in India

1)      Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

2)      Employees’ State Insurance Act, 1948

3)      Maternity Benefit Act, 1961

4)      Payment of Gratuity Act, 1972

5)      Workmen’s Compensation Act, 1923 (now Employees Compensation Act)

6)      Payment of Bonus Act, 1965

7)      Unorganised Workers’ Social Security Act, 2008

8)      Code on Social Security, 2020 (Consolidates and replaces many earlier laws)

 

Conclusion

Social protection is fundamental to developing a fair, equitable and secure society. It cushions individuals and enhances personal security in precarious situations, such as sickness, unemployment or old age, and reduces poverty and inequality. A country such as India where much of the working population is in the unorganised sector without any job security or social protections, investments in social protection systems are critically important to allowing individuals a better quality of life. Even though there are laws and schemes, a lot still needs to be done related to awareness, coverage and implementation, particularly in relation to assisting vulnerable and informal workers. Strengthening social protection systems, particularly for vulnerable or informal workers, is an obligation not simply in legal or economic terms, but a morally responsible way to ensure dignity, justice and inclusive growth.