Social security for 100 million workers likely by 2019

NEW DELHI: Come 2019, the government may pay out of its pocket for social security cover of over 100 million workers, roughly 22% of the estimated workforce of 475 million in 2012. The number has been arrived at using Suresh Tendulkar Committee report.

The labour ministry is finalising a universal social security scheme for all, including agriculture, workers. Official sources told ET that arriving at number of beneficiaries was the first task. “This would give us an estimated quantum of funds required to roll out the scheme,” an official added.

JNU professor Santosh Mehrotra-led committee, appointed by labour ministry, has taken the Tendulkar poverty line 2011-12 to identify potential beneficiaries for the universal social security scheme that, in the first phase, aims to provide retirement pension, medical insurance and death and disability benefits to all workers.


As per the Tendulkar poverty line, percentage of persons below the poverty line in 2011-12 is estimated at 25.7% in rural areas, 13.7% in urban and 21.9% for the country, or national poverty. Starting with these numbers, the committee will now work out funds that will have to be allocated.

Labour ministry has proposed a comprehensive social security system to provide retirement, health, old-age, disability, unemployment and maternity benefits to 50 crore workers in the country.

The 50 crore beneficiaries would be classified into four levels. The first tier would comprise destitute and people below poverty line who cannot contribute for their security; the cost for whom will be entirely borne by the government under tax-based schemes. Workers in the unorganised sector who have some contributory power but cannot be self-sufficient may be covered under the subsidised schemes in the second tier.

The third tier of beneficiaries will include those who either by themselves or jointly with their employers can make adequate contribution to the schemes so as to be self-sufficient while the fourth tier will comprise of comparatively affluent people who can make their own provisions for meeting the contingencies or risks as they rise.