Needed, a well-crafted social security net for all
- The Periodic Labour Force Survey (PLFS) is a large-scale survey conducted by the government of India to gather comprehensive data on employment and unemployment in the country.
- The survey is carried out by the National Sample Survey Office (NSSO), which operates under the Ministry of Statistics and Programme Implementation.
- The Periodic Labour Force Survey (PLFS) is a nationally representative survey conducted by the National Sample Survey Office (NSSO) every two years.
- The survey provides data on the labour force situation in India, including the labour force participation rate (LFPR), unemployment rate, employment elasticity, and the distribution of employment by sector and occupation.
- The LFPR for persons of age 15 years and above declined to 40.3% in 2021-22 from 42.2% in 2020-21.
- The unemployment rate in current weekly status (CWS) for persons of age 15 years and above in urban areas declined to 6.8% in the January to March 2023 quarter from 9.3% in the same quarter of the previous year.
- The employment elasticity with respect to GDP growth declined to 0.33 in 2021-22 from 0.41 in 2020-21.
- The number of persons employed in the organized sector increased by 2.3 million in 2021-22.
- The share of self-employment in total employment declined to 58.3% in 2021-22 from 59.5% in 2020-21
Here are some specific examples of CAG reports on social security schemes in various states:
- Report on Performance Audit of National Social Assistance Programme (NSAP) in Himachal Pradesh (2023): The report found that the NSAP was not being implemented effectively in Himachal Pradesh. There were gaps in the coverage of the scheme, delays in the disbursement of benefits, and lack of awareness about the scheme among the eligible beneficiaries.
- Report on Performance Audit of Social Security Pension Schemes in Rajasthan (2022): The report found that the social security pension schemes were not being implemented effectively in Rajasthan. There were delays in the disbursement of benefits, and lack of awareness about the schemes among the eligible beneficiaries.
- Report on Compliance Audit of Social Security Schemes in Maharashtra (2021): The report found that there were several compliance issues in the implementation of social security schemes in Maharashtra. These included non-submission of utilization certificates, non-maintenance of records, and non-compliance with the norms and guidelines.
Key features of MGNREGA as a social security scheme include:
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Employment Guarantee: MGNREGA provides a legal guarantee for 100 days of wage employment in a financial year to eligible rural households. This provision acts as a safety net, ensuring a minimum level of income and employment to households.
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Unskilled Manual Labor: The scheme primarily focuses on providing employment through unskilled manual labor projects such as water conservation, road construction, and rural infrastructure development. This approach ensures that work opportunities are accessible to a wide range of individuals, including those with limited skills.
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Demand-Driven: MGNREGA is designed to be demand-driven, meaning that employment is provided based on the demand for work from rural households. This approach empowers beneficiaries to seek work when they need it.
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Women's Participation: The Act recognizes the importance of women's participation and mandates that at least one-third of the beneficiaries should be women. This helps in enhancing women's economic empowerment and social inclusion.
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Transparency and Accountability: MGNREGA emphasizes transparency and accountability in its implementation. Job cards are issued to beneficiaries, detailing their entitlements and work history. This information is also made available in public spaces.
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Social Audit: The Act includes provisions for social audits, enabling local communities to monitor and assess the implementation of projects and the proper utilization of funds. This enhances accountability and reduces the chances of corruption.
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Enhancing Rural Infrastructure: Many of the projects undertaken under MGNREGA contribute to improving rural infrastructure, such as water conservation, irrigation, and road connectivity. This indirectly benefits rural communities and livelihoods.
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Livelihood Diversification: MGNREGA's provision of regular employment can act as a buffer during lean agricultural seasons, contributing to livelihood diversification and reducing rural distress.
Social security schemes vary widely across different countries, reflecting the diverse social, economic, and cultural contexts of each nation. Here are a few examples of social security schemes from different countries:
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United States - Social Security: The U.S. Social Security system provides retirement, disability, and survivor benefits to eligible individuals. Workers and employers contribute to the Social Security fund through payroll taxes, and beneficiaries receive monthly payments based on their contributions and age.
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Canada - Canada Pension Plan (CPP) and Old Age Security (OAS): Canada has a pension system that includes the CPP, a mandatory contributory pension plan, and the OAS, a non-contributory pension program for seniors. These programs provide income support during retirement.
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United Kingdom - National Insurance: The National Insurance system in the UK is a social security scheme that provides benefits such as the State Pension, unemployment benefits, and healthcare coverage. Contributions are made by both employees and employers.
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Germany - Social Insurance: Germany has a comprehensive social insurance system that covers health insurance, pension insurance, unemployment insurance, and long-term care insurance. Contributions are made by both employees and employers.
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Sweden - Welfare State: Sweden's welfare system provides a wide range of benefits, including healthcare, education, parental leave, unemployment benefits, and pensions. The system aims to provide a safety net for citizens throughout their lives.
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Brazil - Bolsa Família: Bolsa Família is a conditional cash transfer program in Brazil that provides financial assistance to low-income families. To receive benefits, families must meet certain requirements, such as keeping children in school and meeting health checkup requirements.
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Japan - Employees' Pension Insurance and National Health Insurance: Japan's social security system includes the Employees' Pension Insurance for retirement and disability benefits, as well as the National Health Insurance system that offers healthcare coverage.
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Australia - Age Pension and Medicare: Australia provides an Age Pension to seniors and a Medicare system that offers subsidized healthcare services. Superannuation, a mandatory retirement savings system, is also an important aspect of Australia's social security.
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Netherlands - Social Assistance and Pension Schemes: The Netherlands offers a combination of social assistance programs for individuals with low incomes and pension schemes for retirees. The system emphasizes the principle of solidarity.
India has taken several steps and can continue to implement various strategies to enhance social security and promote greater inclusivity. Here are some key steps:
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Strengthen Existing Social Security Programs:
- Strengthen and expand existing programs like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the National Social Assistance Programme (NSAP) to provide broader coverage and better benefits to vulnerable populations.
- Ensure timely payments and effective implementation of these programs to reach the intended beneficiaries.
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Universal Basic Income (UBI) or Targeted Cash Transfers:
- Consider implementing a Universal Basic Income or targeted cash transfer program that provides a regular income to all citizens or specific disadvantaged groups.
- This can help alleviate poverty, reduce inequality, and ensure a minimum standard of living for all.
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Improving Healthcare Access:
- Enhance access to quality healthcare by expanding government healthcare programs like Ayushman Bharat.
- Invest in public healthcare infrastructure to ensure affordable and comprehensive healthcare services for all.
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Education and Skill Development:
- Strengthen education systems to provide quality education, especially in rural and marginalized areas.
- Promote skill development and vocational training programs to enhance employability and income opportunities.
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Labor Market Reforms:
- Implement labor market reforms to promote decent work, protect workers' rights, and provide a supportive environment for formal and informal workers.
- Enhance job security, fair wages, and social protections for workers in the informal sector.
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Gender Equality:
- Implement policies and programs that empower women economically and socially.
- Promote equal pay for equal work, maternity benefits, and support for women's entrepreneurship.
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Rural Development:
- Invest in rural infrastructure, including road connectivity, irrigation facilities, and access to clean water.
- Encourage rural entrepreneurship and agribusiness to create sustainable livelihood opportunities.
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Social Audits and Accountability:
- Strengthen mechanisms for social audits to ensure transparency, accountability, and effective utilization of funds in social security programs.
- Engage communities and beneficiaries in monitoring and evaluating program implementation.
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Digital Inclusion:
- Promote digital literacy and ensure access to technology in rural and underserved areas.
- Use digital platforms to facilitate the delivery of social security benefits and services.
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Collaboration and Partnerships:
- Foster partnerships between government, civil society organizations, and the private sector to address social security gaps.
- Leverage the expertise and resources of different stakeholders to design and implement effective programs.
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Policy Research and Data Analysis:
- Conduct thorough research and analysis to understand the specific needs and challenges of different groups.
- Use data-driven insights to design targeted policies and interventions.
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Progressive Taxation and Redistribution:
- Implement progressive taxation policies to generate revenue for social security programs.
- Use revenue generated to fund social welfare programs that benefit marginalized populations.
The PLFS is a nationally representative survey conducted by the National Sample Survey Office (NSSO) every two years. The survey provides data on the labour force situation in India, including the LFPR, unemployment rate, employment elasticity, and the distribution of employment by sector and occupation.
The PLFS is an important source of data for policy makers and researchers to understand the labour market situation in India and to formulate policies to improve employment opportunities
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Practice Questions
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