Social Protection

Building social protection floors
and comprehensive social security systems

India

Publications

Situation and Priorities

Social protection situation

India has a wide-ranging social security system comprising of both social insurance and social assistance schemes both at central and state levels. Some of these social transfers are contributory and have legal backing but restricted to largely the organized (formal) sector of the economy. In addition, India has a specific institutional set-up of extending social protection coverage through two boards: Building Workers’ Welfare Boards for building and construction workers and State Unorganized Workers’ Board for unorganized (informal) workers. There are also other forms of social transfers on non-contributory based schemes targeted towards poor, informal sector workers and self-employed and in-kind measures such as supporting foods and nutrition.

As India commits to the progressive universalization of social security coverage through the Social Security Code 2020, it is faced with the challenges of catering to a very large population with central-state structure and increase of informality (close to 90% of workforce is informal ). To address this the Government of India has launched a new e-registration system (e-Shram) which is expected to massive expand the geographic coverage across India.

The Employees’ State Insurance (ESI) Cooperation and Employees’ Provident Fund Organization (EPFO) provide the social security coverage to formal workers at certain sizable establishments. The ESI Scheme covers more than 132 million beneficiaries across all states of India with 6 types of benefits including health protection, unemployment insurance, sickness benefits, etc. The EPFO mainly focusing on providing income protection for old-ages covers 252 million beneficiaries instituting provident funds, pension fund and deposit linked insurance fund for employees working in factories and other establishments.

ILO cooperation with India

• The ILO has been working closely with the ESI Corporation since 2019 to provide technical supports for strengthening its service delivery capacities on health. Under this project, the ILO has developed two large-scale primary studies on current and potential beneficiaries, besides carrying out an in-depth diagnostics of the scheme’s performance.
• As part of a South-South Technical Cooperation initiative in 2022-23, the ILO is facilitating cooperation between India and Brazil for mutual learning of good practices in social protection around issues related to social security financing and digitalization of social protection.
• Focusing on emerging forms of employment such as gig and platform work, the ILO is developing a survey-based evidence-based analysis to location-based platform workers in Delhi city.
• The ILO has been carrying out a study on extension of social protection to informal workers in Utter Pradesh. The study will provide technical inputs to the tripartite constituents addressing identified challenges.

COVID-19 and other crises

India implemented a range of measures to address the economic and social impact of COVID-19, including:

• Reimbursing the cost of COVID-19 testing in private labs for the people covered by the PM-JAY scheme.
• Directing a benefit of 500 Indian rupees for two months to 35 million beneficiaries of non-contributory schemes for older people, widows and people with disabilities.
• The state of Uttar Pradesh provided a one-off benefit of 1,000 Indian rupees to 480,000 daily wagers (street vendors, rickshaw pullers, etc).
• During 2021-22, the Department of Food and Public Distribution under Ministry of Consumer Affairs, Food and Public Distribution provided free ration to nearly 800 million poor as a response to COVID-19 under Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY).
• The e-Shram Portal for registration of all informal workers in India was initiated in 2021 with a stated purpose for disaster-preparedness and providing portable social security and relief measures for migrant workers.
• During the pandemic period, the ESI Corporation opened access to its hospitals for non-beneficiaries to contribute to the larger health protection efforts. At the same time, the ESI Scheme and the PM-JAY are developing a convergence in service delivery for mutual support in meeting effective coverage gaps.

Government and social partner priorities

Under the DWCP 2023-27 Strategic priority 3, ILO constituents in India agreed to “Promote and strengthen institutions to enable all workers, especially those who are marginalized and vulnerable, to improve their employment outcomes and progressively achieve universal social protection”.

• By 2027, inclusive and gender-responsive laws, policies, legal frameworks and mechanisms developed by constituents to progressively achieve universal social protection for all
• By 2027, fair, effective and inclusive policy frameworks, institutional mechanisms and services developed to reduce discrimination and inequalities and to protect the rights of migrant workers, women workers, especially those in the informal economy and workers in vulnerable situation

ILO Projects and Programmes

Results

The ILO has been assisting the Government of India with its goal of streamlining and consolidating its myriad social security laws, closing coverage gaps, and improving operations by creating a coherent policy structure and unified delivery system. In 2019, a national policy framework was developed on TB-HIV in the world of work, with the support of the ILO and social partners.

Funding gaps / Support the ILO

US$ 400,000

Reviewing and verifying statistics on social protection both at central and state levels to reflect accurate data on social protection coverage linked to SDG 1.3.1

US$ 800,000

Developing an evidence-based analysis on social protection coverage to informal workers in three densely populated states in India (Maharashtra, Bihar, West Bengal) for SP policy discussions at the state level

Impact: 500 million people in four states including Utter Pradesh - N° of persons potentially covered by a strategy

US$ 1,200,000

Designing new social security scheme to gig and platform workers

News and Events

• Asia Expert Roundtable on Unemployment Protection 2024 09.10.2024 - 10.10.2024
• Joshimath residents reluctant to evacuate, Uttarakhand Chief Secy says every minute is important
• Monthly pension under various state schemes hiked from Rs 1,000 to Rs 1,200
• Rajasthan passes Bill extending social security to gig workers sans debate
• Rajasthan Minimum Income Law Has Provided a Development Model for the Nation: Gehlot
• Delhi Floods: Yamuna Water Level Rises Again After Heavy Downpour, Still Above Danger Mark