Schemes for Workers in Unorganised Sector

In order to provide social security benefits to the workers in the unorganised sector, the Government has enacted the Unorganised Workers’ Social Security Act, 2008.

The 2008 Act stipulates formulation of suitable welfare schemes for unorganised workers on matters relating to: (i) life and disability cover, (ii) health and maternity benefits, (iii) old age protection and (iv) any other benefit as may be determined by the Central Government through the National Social Security Board.

Various Schemes, formulated by the Government to provide social security cover to the unorganized worker, listed in the Schedule I of the above Act are as under:

i. Indira Gandhi National Old Age Pension Scheme. (Ministry of Rural Development)

ii. National Family Benefit Scheme. (Ministry of Rural Development)

iii. Janani Suraksha Yojana. (Ministry of Health and Family Welfare)

iv. Handloom Weavers’ Comprehensive Welfare Scheme. (Ministry of Textiles)

v. Handicraft Artisans’ Comprehensive Welfare Scheme. (Ministry of Textiles)

vi. Pension to Master Craft Persons. (Ministry of Textiles)

vii. National Scheme for Welfare of Fishermen and Training and Extension. (Department of Animal Husbandry, Dairying & Fisheries)

viii. Aam Admi Bima Yojana. (Department of Financial Services)

ix. Rashtriya Swasthya Bima Yojana. (Ministry of Health and Family Welfare)

Central Government has also launched following three schemes for all citizen targeting unorganised workers to provide them comprehensive social security.

(i) Atal Pension Yojna (APY): Under the APY, subscribers would receive a fixed minimum pension at the age of 60 years, depending on their contributions, which itself would vary on the age of joining the APY. The Central Government would also co-contribute 50 percent of the total contribution or Rs. 1000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years, who are not members of any statutory social security scheme and who are not Income Tax payers. The pension would also be available to the spouse on the death of the subscriber and thereafter, the pension corpus would be returned to the nominee. The minimum age of joining APY is 18 years and maximum age is 40 years. The benefit of fixed minimum pension would be guaranteed by the Government.

(ii) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Under PMJJBY, life insurance of Rs. 2 lakh would be available on the payment of premium of Rs. 330 per annum by the subscribers. The PMJJBY will be made available to people in the age group of 18 to 50 years having a bank account from where the premium would be collected through the facility of “auto-debit”.

(iii) Pradhan Mantri Suraksha Bima Yojana (PMSBY): Under PMSBY, the risk coverage will be Rs. 2 lakh for accidental death and full disability and Rs. 1 lakh for partial disability on the payment of premium of Rs. 12 per annum. The Scheme will be available to people in the age group 18 to 70 years with a bank account, from where the premium would be collected through the facility of “auto-debit”.