Improving Social Security in Unorganized Sector By Bharat Dogra
One
of the biggest challenges in India is to improve the social security in the
unorganized sector where farmers, workers, artisans and others have hardly any
social security at present. Perhaps the most effective way of meeting this
challenge is to have a scheme of universal or near-universal pensions so that
all the elderly citizens can get a pension which is the equivalent of at least
half of the minimum wage rate.
At
the level of the existing rates approximately this means providing a monthly
pension of about Rs. 2550 or so to about 105 million elderly citizens. Of
course those already receiving a higher pension or those who are from very rich
households can be kept out of this scheme. 80 per cent coverage can be achieved
on the basis of an annual budget of Rs. 2.5 lakh crore or so.
This
burden can be shared by the Union government and various state governments on
the basis of some formula on which common agreement can be reached. This may be
difficult, but this is possible. Compared
to this the present annual budget of the Indira Gandhi National Old Age Pension
Scheme is Rs. 6130 crore while the annual budget for the Indira Gandhi National
Widow Pension Scheme is Rs. 2221 crore. Clearly this is extremely low compared
to the real needs yet there has been absolutely no increase in this year’s
Union budget.
Hence
there is clear need for mobilization of citizens including elderly citizens for
a universal scheme of pensions ensuring at least Rs. 2500 per month to all
elderly citizens. In addition there should be a provision for linking this to
inflation so that along with the pension for government employees this pension
for can also increase with inflation. The
government has been publicizing some insurance schemes for improving social
security in the unorganized sector but the actual allocations for these have
not been adequate. An allocation of Rs. 209 crore for swavalamban scheme was
made in the Union budget for financial year 2016-17 but in the revised
estimates for this year this allocation was reduced to zero.
In
the budget for the same year an allocation of Rs. 450 crore was made for
government’s contribution to the Aam Aadmi Bima Yojana but in the revised
estimates this was reduced to just Rs. 100 crore. An allocation of Rs. 200
crore was made for Atal Pension Yojana but in the revised estimates this
was reduced to just Rs. 40 crore.
Clearly
social security has been badly neglected in the unorganized sector and this
neglect needs to be remedied with a sense of urgency in the near future. Organisations like the national
level Pension Parishad which have been campaigning for universal pensions and
related demands should get wider support of citizens.
http://www.frontierweekly.com/views/may-17/8-5-17-Improving%20Social%20Security%20in%20Unorganized%20Sector.html