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Journalism of Courage
The final report on social security for unorganised workers by the National Commission for Enterprises in the Unorganised Sector (NCEUS) chaired by Dr Arjun Sengupta to be submitted to the Government tomorrow will be the most ambitious social welfare scheme for the poor ever attempted anywhere in the world, covering 93% of the country’s workforce and entailing a total cost of Rs 25,401 crore to the exchequer over five years which is to be recouped through a social security tax or cess.
The report and the draft Bill prepared by the NCEUS, in tune with the UPA’s Common Programme, seek to provide in a phased manner, health benefits. life insurance and Provident Fund or old-age pension for the country’s 30 crore unorganised workers.
As per the report, the cost of the scheme will be met by contributions from identifiable employers, Centre and state governments and workers at the rate of Re 1 per day. Workers below the poverty line will be exempted from the payment of contribution and the cost incurred will be shared by the Centre and states in 75:25 ratio.
The commission has worked out that the total cost of the scheme will be 0.48 per cent of the nation’s GDP.
The scheme, formulated on the basis of a draft bill presented by the National Advisory Council—when Sonia Gandhi was the chairperson—and the recommendations of the Union Labour Ministry, will complement the Centre’s Rural Job Guarantee programme and extend the coverage of the existing National Old Age pension scheme.
The three types of social security recommended by the report:
• Hospitalisation benefits for the worker and family to the tune of Rs 15,000 per year and maternity benefit to the extent of Rs 1,000 and sickness allowance of Rs 15 per day beyond three days of hospitalization.
• Life insurance to the tune of Rs 15,000
• PF with assured return of 10 per cent for workers above the poverty line and a monthly pension of Rs 200 for those above 60 years living below the poverty line.
The Bill envisages the implementation of the insurance component through public sector insurance companies and postal life insurance network. The federal organisational structure for the scheme will have a National Social Security Board at the Centre, State Social Security Boards and Workers Facilitation Centres managed by elected local bodies or credible trade unions and NGOs at the grass roots for registration and other purposes.
The report and the draft bill will be presented to Prime Minister Manmohan Singh by Arjun Sengupta, P Kannan and Ravi Srivastav, the two full-time members of the Commission, P N Yugandhar and T S Papola, part- time members and V K Malhotra, the Commission Member Secretary.
The Safety Net proposed
Cost: Rs 25,401 crore over five years
• Re 1 per day contribution from workers
• Workers below poverty line exempt
• Rest shared by Centre, states in 75:25 ratio
• Rs 15000 per yr hospital benefits for worker and family
• Sickness allowance of Rs 15 per day beyond 3 days of hospitalization.
• Rs 15000 life insurance
• PF with 10% assured return for workers above poverty line
• Monthly pension of Rs 200 for those above 60, below poverty line
madhavan.kutty@expressindia.com
