Unorganised sector bill by previous govt faces heat
The government is likely to scrap the bill for workers in the unorganised sector drafted by the previous NDA government, as it feels adequate attention had not been paid to the social security aspect, and plans to replace it with two bills.
By PTI |
NEW DELHI: The government is likely to scrap the bill for workers in the unorganised sector drafted by the previous NDA government, as it feels adequate attention had not been paid to the social security aspect, and plans to replace it with two bills.
The Unorganised Sector Workers' Bill, which was drafted by the NDA was referred to the National Commission for Enterprises in the Unorganised Sector, which concluded that a single bill may not be the best way to address the problems of workers in that sector.
"We have instead suggested two bills - Unorganised Sector Workers Social Security Bill and Unorganised Sector Workers (Conditions of Work and Livelihood Promotion) Bill - for the sector," acting Chairman of the Commission Jaishankar said.
He said the major problem with the earlier Bill was that it transposed the conditions of organised sector to the unorganised sector and did not deal with the social security aspect in an exhaustive way.
Aware of the fact that the social security aspect in the previous bill was not dealt with properly, the National Advisory Council headed by UPA Chairperson Sonia Gandhi had drafted an Unorganised Sector Workers' Social Security Bill.
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This Bill was also referred to the commission by the Prime Minster's office.The draft of the Unorganised Sector Workers Social Security Bill prepared by the Commission envisages covering all workers in that sector, who earn up to Rs 5,000 a month.
The social security cover would be extended to self- employed workers (including small and medium farmers), wage workers and home-based workers.
The Bill envisages a minimum social security cover comprising health insurance, life insurance, old age pension and maternity benefits for those covered under the Bill.
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The workers and their employers apart from the government would have to contribute rupee one per day to be eligible for the cover.Wherever the employer-employee relationship does not exist the centre and state governments will pay employer's share in the ratio of 3:1.
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Even the contribution of the government will be divided between the Centre and state governments in the ratio of 3:1.For the workers belonging to households classified as below the poverty line, the contribution will be made by the central government.
When all the 30 crore workers in the unorganised sector would be covered the state and central government would have to contribute Rs 22,558 crore with the share of the states coming to Rs 5,010 crore and of the centre to Rs 17,584 crore.
"Taking in to account the administrative expenses as well as expenses for capacity building and related activities the upper boundry of the public outlay on the scheme will not exceed one per cent of GDP," K P Kannan member of the commission said.
While the social security bill drafted by NAC had suggested a corporate structure for managing the scheme while the commission has suggested a contributory scheme.
The commission is of the view that all the workers can be covered within five years as in the case of National Employment Guarantee Scheme.
"This would mean coverage of six crore workers with government contribution of Rs 4512 crore in the first year," Jaishankar said.
"The social security act for the unorganised workers is complementary to the Bill on Employment Guarantee introduced in Parliament," Member Secretary of the Commission K K Jaswal said.
"We are trying to ensure that the minimum pension that a worker would get after the bill is passed would be Rs 200 and the maternity benefit would be Rs 1,000," Kannan said.
The Unorganised Sector Workers (Conditions of Work and Livelihod Promotion) Bill would provide basic minimum standard on hours of work, payment of minimum wages and adherence to Bonded Labour Abolition Act and Child Labour Prohibtion and Regulation Act.
It also recognises a set of minimum entitlement of workers comprising the right to organise, non discrimination on payment of wages and conditions of work, safety at workplace and absence of sexual harassment.
For dispute resolution between wage earners and employers in the unorganised sector, he draft bill has proposed creation of at least one dispute resolution council in every disrict to be constituted by state governments.
The draft of the two bills would now be put in the public domain for discussions.
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