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This is an archive article published on February 23, 2004

PM throws his social security net on workers

In A pre-poll bonanza for unorganised workers, Prime Minister A.B. Vajpayee today launched a social security scheme offering health insuranc...

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In A pre-poll bonanza for unorganised workers, Prime Minister A.B. Vajpayee today launched a social security scheme offering health insurance and old age pension to them and underlined the need to bring labourers under the organised sector.

‘‘For the first time after Independence, my government has chalked out a plan to insure lives of workers of unorganised sector,’’ Vajpayee told a gathering of workers here. The PM, on a two-day visit to his parliamentary constituency Lucknow, the first after the dissolution of Lok Sabha, said his government fully appreciated the concerns and problems of unorganised workers and intended to solve them on priority basis.

It was ironical that no government except the NDA had thought about their problems, he said.

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‘‘The rich do not need social security, but for the poor an umberella of social security is must to protect them in case of accidents, ill-health or untimely death,’’ Vajpayee said.

Asserting the NDA government was committed to provide social security to unorganised workers, he said the scheme would be managed by Employees Provident Fund Organisation.

Initially, the scheme would be launched in 50 select districts, including state capitals, he said adding ‘‘if it gets a good response, it will be implemented all over the country’’.

The PM said the scheme would cover all workers in the unorganised sector drawing up to Rs 650 per month as wages. Workers in the 18-35 age group will have to contribute Rs 50 per month and those in the 36-50 age group will have to pay Rs 100 per month.

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Contribution from the employers would be Rs 100 per month and the government contribution would be 1.16 per cent of the monthly wage of workers or up to Rs 250 per month, Vajpayee said.

He said a worker would get a pension of Rs 500 per month on retirement, adding in case of untimely death, family members of a worker would get Rs 1.25 lakh plus pension of Rs 500 per month.

Vajpayee said in case of hospitalisation, a worker would get Rs 30,000 as reimbursement and family members Rs 50 per day for 15 days. Union Ministers Rajnath Singh and Sahib Singh Verma also spoke.

Vajpayee handed over National Social Security numbers to 14 workers at the function.

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