Social security is a fundamental human right recognized under Article 22 of the Universal Declaration of Human Rights and is essential for achieving the Sustainable Development Goals (SDG 1: End Poverty). In India, with over 90% of the workforce in the unorganized sector, the current fragmented framework leaves millions without adequate protection.
The ILO’s Social Protection Floors Recommendation advocates universal access to basic income security and healthcare, aligning with India’s aspiration for a Universal Social Security (USS) system.
Need for a Universal Social Security System in India:
- Majority in Informal Sector: Organised sector workers form less than 10% of workforce while informal workers face no job security, labour rights, or post-retirement provisions.
- Economic Vulnerability: COVID-19 revealed the fragility of incomes and declining social securitycoverage.
- Healthcare Costs: Out-of-pocket expenses form 90% of private health spending; pushes millions into poverty annually.
- Low Public Spending: Social protection expenditure is 1.5% of GDP, lower than middle-income peers.
- Constitutional Mandate: DPSPs (Article 41, 42, 43) envisage state assistance for all, especially vulnerable groups.
Challenges in Implementation:
- Fragmentation: Multiple schemes run by different departments without integration.
- Coverage Gaps: Gig workers, migrants, women in informal work often excluded.
- Identification Issues: e-Shram incomplete; absence of unified registry.
- Portability: Inter-state migration hinders benefit access.
- Funding Constraints: Fiscal space limits full-scale universal coverage.
- Awareness Deficit: Many workers unaware of entitlements.
Way ahead:
- Unified Governance Model: Integrate EPFO, ESIC, e-Shram with UAN-linked benefits; learn from PM Gati Shakti platform.
- Urban MGNREGA: Municipal bodies to provide guaranteed work on job skill training.
- Universal Health Coverage: Expand PM-JAY, ensure Jan Aushadhi sustainability, use telemedicine and nurse-led models.
- Digital Inclusion: Use JAM trinity for DBT, partial allocation to pension/insurance funds.
- Fiscal Commitment: Raise social protection spending to at least 3% of GDP.
- Portability Measures: Nationwide portability like One Nation One Ration Card.
Conclusion:
A universal, inclusive, and portable social security system is essential for India’s equitable growth. Leveraging digital platforms, integrating welfare boards, and ensuring fiscal commitment can ensure universal and sustainable social protection.
+1 Value Addition:
- Public Spending on Social Protection: 1.5% of GDP (excluding healthcare).
- ILO’s 2021 report estimated India’s social protection coverage at 24.4%.
- Unorganized Sector Share: 90% of workforce.
- Global Best Practices:
- Brazil: Bolsa Familia (conditional cash transfers, universal reach).
- South Africa: Non-contributory social pensions for elderly.
- Japan: “Learning while earning” skill models with employer support
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