Plan panel seeks social security cover for unorganised sector

NEW DELHI: The Planning Commission is set to recommend introduction of a universal scheme to provide social security cover to all section workers engaged in the informal and unorganised sectors of the economy in its mid-term appraisal of the 10th Plan.

The Commission may also recommend that legislative changes be introduced to ensure that interests of contract workers are protected and they are provided social security cover.

Planning Commission member Balachandra Mungerkar told ET that the Commission, which was currently finalising the course correction to be recommended through MTA, may seek an “umbrella legislation that would protect the interest of all those engaged in the informal and unorganised sector.�

More than 90% of the country’s labour force of 37 crore is employed in these sectors. Existing labour laws do not provide much protection, social security included, to the people engaged in such employment. A vast majority of them are agricultural workers who find employment only during the sowing and harvest season.

Mungerkar said, “The MTA will aim to achieve the twin objective of higher growth in the economy and broadening the net of social security protection to the weaker sections of the society consistent with the National Common Minimum Programme of the government.�

He feels that labour laws in the country should be such that they do not hinder economic growth, while simultaneously ensuring that the rights of workers are protected.

There is no comprehensive law even at the state level to protect the interest of informal sector workers or provide them with any form of social security. Some states have insurance schemes that are targeted at specific sections.

Mr Mungerkar feels the proposed social security cover or an insurance scheme would need the beneficiary to be a part contributor, with the government chipping in as well.

The government does not have the resources to bear the entire expense of providing cover to all workers in the unorganised sector, he said. As for contract workers, Mr Mungerkar feels legislative changes are needed to lay down guidelines for their employment, working conditions, working hours and safety.