Worker groups demand social security fund for unorganised workers in Budget

The matter was also discussed with the finance minister Nirmala Sitharaman on Monday as central trade unions made representations as part of the pre-Budget consultation

The central trade unions have called for setting up a government-sponsored social security fund in the upcoming Budget. This will help millions of unorganised, gig, platform and agricultural workers, as envisaged under the Code on Social Security 2020.

“The Union government-sponsored social security fund for unorganised workers will provide them with defined universal social security schemes. These include minimum pension and other medical and educational benefits,” Amarjeet Kaur, general secretary, All India Trade Union Congress, told Business Standard.

The matter was also discussed with finance minister Nirmala Sitharaman on Monday as central trade unions made representations as part of the pre-Budget consultation.

“The social security fund for the unorganised and agricultural workers has to be set up. Special schemes will ensure occupational health and safety measures for workers, especially for waste recyclers, salt pan workers and glass bangle makers,” a statement released by the 10 central trade unions, present at the meeting, read.

Though the Rashtriya Swayamsevak Sangh (RSS)-affiliated Bhartiya Mazdoor Sangh and National Front of Indian Trade Unions (NFITU) are not signatories to the statement, their representatives also confirmed that the issue was raised in the meeting.

“The government can operationalise section 141 of the code, even though the full code is yet to come into force. The partial implementation of the code is allowed by law and already some provisions like Section 142 that deals with the use of Aadhaar are in operation. It will be a welcome step as the fund will provide relief to millions of informal workers,” said labour lawyer B C Prabhakar.

The setting up of the fund will allow the Centre to roll out benefits to the unorganised workers quickly as it will allow them to subsume the existing social security schemes — old-age pension, provident fund, health, housing, and education — under one umbrella and reroute the benefits through the social security fund.

After subsuming the Unorganised Workers’ Social Security Act, 2008, Section 141 of the Code on Social Security 2020 envisages setting up the social security fund. It will be funded by the central government, state governments, corporate social responsibility funds, and contributions of the aggregators or from the composition of the offences under the code.

“Currently, the vast majority of people who are not covered under the provident fund or the Employees' State Insurance Corporation (ESIC) are not able to avail any social security benefits. For them, the Unorganised Workers Act was passed in 2008 making a provision for a monthly pension of Rs 1,000. However, that never materialised. It will be a welcome step if this provision of the new code is implemented during the Budget so that workers can avail some benefits. The government should also make an allocation for it,” said Kaur.

Vouching for a safety net

- Sec 141 of the new Code on Social Security envisages Social Security Fund

- Govt can operationalise the Code even though the full Code is yet to come into force

- Fund will allow govt to reroute benefits to the unorganised workers under one umbrella

- Proposal discussed in pre-Budget consultations with Finance Minister Nirmala Sitharaman on Monday