Social Security for Unorganised Workers: EPFO-ESIC Expansion

Push for Social Security Coverage in India

The Government of India is planning to extend social security benefits to workers in the unorganised sector. The proposal aims to include them under Employees' Provident Fund Organisation and Employees' State Insurance Corporation, ensuring access to pension and health insurance benefits.

Government’s Stand in Parliament

Minister of State for Labour and Employment, Shobha Karandlaje, informed the Lok Sabha that discussions are ongoing to include informal workers in pension schemes. The goal is to move towards universal social security, where all workers receive basic financial and health protection.

Wider Coverage for Workers

The plan is expected to benefit around 32 crore workers, including gig workers, platform workers, and other informal labourers. At present, many of these workers do not have access to organised welfare schemes. The proposal is linked to the broader reforms under the Labour Codes, which aim to expand benefits across sectors.

Proposed Contribution System

The scheme may follow a shared contribution model. Workers will contribute a small amount, while the government may provide support through subsidies. This will help keep the scheme affordable. As more people join, the cost of insurance could decrease, making it easier for low-income workers to participate.

Exam-Focused Points

• EPFO: Provides pension and provident fund benefits

• ESIC: Offers health insurance and medical services

• Coverage target: Unorganised, gig, and platform workers

• Labour Codes: Aim for universal social security

• Model: Voluntary contribution + government support

Challenges and Future Scope

While the proposal is promising, challenges remain in implementation. These include worker registration, affordability, and awareness. The government is also working on digital systems and doorstep services to improve access. If executed well, the reform can strengthen India’s social security system and improve the lives of millions.