Moneycontrol
Last Updated : Jul 16, 2018 08:26 PM IST | Source: Moneycontrol.com

Govt working on social security scheme to cover 10 crore workers by 2019: Report

The comprehensive scheme will provide retirement, health, old age, disability, unemployment and maternity benefits to 50 crore workers in the country

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The labour ministry is finalising a universal social security scheme for all, under which the government will cover 100 million workers by 2019, The Economic times reported.

Official sources told the newspaper that the first task for the ministry is to arrive at a number of beneficiaries. This will help in deciding how much money will be require to roll out the scheme.

For this purpose, the ministry will take into account the Tendulkar poverty line 2011-12 to identify potential beneficiaries for the universal social security scheme.

The comprehensive scheme will provide retirement, health, old age, disability, unemployment and maternity benefits to 50 crore workers in the country, according to the ministry's proposal.

The beneficiaries will be categorized into four levels and the first tier will include workers that are below the poverty line, who cannot contribute for their security. The government will bear the entire cost for this category under tax-based schemes.

The second tier will comprise workers in the unorganised sector who have some power to contribute to their own security but cannot be self-sufficient. These workers may be covered under subsidised schemes.

The third tier of beneficiaries will be those who either by themselves or jointly with their employers can make adequate contribution to the schemes so as to be self-sufficient.

The fourth tier will consist of relatively-affluent people who can make their own provisions for meeting contingencies or risks as they rise.

In the first phase of the scheme, the labour ministry aims to provide retirement pension, medical insurance and death and disability benefits to all workers.
First Published on Jul 16, 2018 02:29 pm
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