Syllabus:
Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes
Issues relating to development and management of Social Sector/Services relating to Human Resources (GS2)
Source:
The Hindu,24/08/23
Content:
What is social security?
- Social security is the protection that a society provides to individuals and households to ensure access to health care and to guarantee income security, particularly in cases of old age, unemployment, sickness,work injury, maternity or loss of a breadwinner.
- Social security protection is clearly defined in ILO conventions and UN instruments as a basic human right .
- Only 20 percent of the world’s population has adequate social security coverage, while more than half lacks any kind of social security protection at all.(as per ILO, International Labour Organization)
| Key Statistics (ILO data) |
| Only one in five people in the world has adequate social security coverage |
| More than half the world’s population lacks any type of social security protection. |
| In middle-income countries, social security coverage generally ranges from 20% to 60% of the population. |
| Europe is the region with the highest level of social security expenditure at nearly 25% of GDP. |
| Lack of social security coverage is largely concentrated in the informal economies of the developing world, which are generally a larger source of employment for women than for men. |
Need for Social security
- It provides workers and their families with access to health care and with protection against loss of income.
- Provides older people with income security in their retirement years.
- Children benefit from social security programmes designed to help their families cope with the cost of education.
- For employers and enterprises, social security helps maintain stable labour relations and a productive workforce.
- Social security can contribute to social cohesion and to a country’s overall growth and development by bolstering living standards.
Why are governments interested in social security?
- Social security is a human right, dating back to the 1948 Universal Declaration, and enshrined in a range of treaties and constitutions.
- Social security helps reduce poverty and inequality .
- It promotes social inclusion and cohesion.
- It contributes to economic growth by increasing purchasing power and supporting aggregate demand.
- Social security provides essential tools to address and prevent compounding crises such as economic shocks, climate-related hazards, and other emerging threats.
| In the case of India ,High incidence of poverty and vulnerability, large number of workers in the informal sector,high level of livelihood insecurity are the main reasons for adoption of social security schemes.Also,The Directive Principles of State Policy(Article 43) enshrined in Part IV of the Indian Constitution, reflects that India is a welfare state. This means that the government has a responsibility to provide for the well-being of its citizens. |
Social security in India
- Social security in India includes a variety of statutory insurances and social grant schemes bundled into complex and fragmented systems run by the Indian government at the federal and the state level.
- Article 43 (Directive Principles of State Policy)of the Indian Constitution speaks of the state’s responsibility to provide social security to the citizens of this country.
- Aadhaar is utilized to distribute welfare measures in India.
- Generally, India’s social security schemes cover the following types of social insurance:Pension;Health Insurance and Medical Benefit;Disability Benefit;Maternity Benefit; and Gratuity.
- The social security system has since been universalized with the passing of The Code on Social Security, 2020.
- Around 53% of all of the salaried workforce does not have any social security benefits in India, according to the Periodic Labour Force Survey Annual Report 2021-22.
- India was ranked 41 out of 44 countries in the Mercer CFS Global Pension Index, 2022 as compared to 40th out of 43 countries in 2021.
Some Govt initiatives
Achievements
- India’s National Old-Age Pension Scheme, financed by central and state resources, reaches one fourth of all elderly, i.e. about half of pensioners who live in poverty.
- Ayushman Bharat scheme that gives Health Coverage to more than 50 crore people emerged as the world’s largest health insurance scheme.
Problems with the current social security schemes in india
- Low coverage and meager amount: Despite the introduction of several pension schemes, their coverage remains low.
- Inadequate benefits: The amount of pension provided is often insufficient and payments are not made regularly.
- Challenges in registration: Informal workers face challenges in registering as beneficiaries, which is a prerequisite for coverage.eg: registering in eShram portal is a difficult task for poor illiterate workers.
- High inclusion and exclusion errors: Certain sections of society, such as single women or destitute people, are not well included in government welfare programs due to factors such as illiteracy.
Other Issues with social security system in India
- Difficulty in providing comprehensive coverage to all citizens due to the size and diversity of the country
- Bureaucratic hurdles and corruption have also hindered the effective implementation of these schemes
- Inadequate funding of social security schemes.
- Lack of adequate data infrastructure is also a significant challenge in the implementation of social security schemes.
- Under utilization of funds allocated to social security schemes and policies.
Eg: (National level )The Comptroller and Auditor General of India (CAG) audit on the National Social Security Fund for unorganized sector workers, identified ₹1,927 crore had just not been utilized.
Eg:(State level) In Haryana, the CAG noted that the direct benefit scheme of the State’s Social Justice and Empowerment Department had seen the transfer of ₹ 98.96 crore to the accounts of deceased beneficiaries.
- Complex social security framework for unorganized workers with overlapping areas of authority between the State and Centre, and confusing definitions (eg: confusion between a platform worker, an unorganized worker and someone who is self employed)
Solutions
- Strengthen existing schemes (eg:Employees’ Provident Fund (EPF)) with budgetary support and expansion of coverage.
- Significant push to raise awareness about social security to ensure that more workers are aware of the available benefits.
- Eg: Organizations such as the Self Employed Women’s Association which run Shakti Kendras may be funded to run campaigns to provide greater information on social security rights, services and schemes of govt.
- Special attention should be provided to domestic workers (usually female) and Migrant workers so that coverage of social services such as child care can be expanded.
- Push for a pan India labour force card and an expansion of existing successful schemes such as the Building and Other Construction Workers Schemes to other categories of workers.
Good practices across the world
- In Brazil, social assistance pensions lift about 14 million people out of extreme poverty.Brazil’s General Social Security Scheme which is contribution based, substituting income loss for a worker (and his family), whether in partial or full.
- Costa Rica achieved full health coverage through a combination of health insurance and free access to public health services.
- South Africa tax-financed State Old-Age Pension (SOAP) reaches 1.9 million beneficiaries, about 85% of the eligible population. The scheme reduces the poverty gap for pensioners by 94%.
Conclusion
- The time has come for India to consolidate its existing social security schemes/ad hoc measures and provide universal social security to its entire labour workforce in a manner that is fiscally and administratively feasible.
Reference