(Protecting the Vulnerable: Providing

social welfare to informal sector

workers)

Uplifting the

informal sector

INTRODUCTION……

The First Indian National Commission on Labour (1966-69) defined

„unorganized sector workforce‟ as –

“those workers who have not been able to organize themselves in pursuit

of their common interest dues to certain constraints like casual nature of

employment, ignorance and illiteracy, small and scattered size of

establishments”.

Their employment relationship, in law or practice, is not subject to:

National labour legislation

Income taxation

Social protection or

Entitlement to certain employment benefits, e.g. paid annual leave, sick leave, etc

More than 90% of India’s workforce belongs to the informal sector and accounts for 50% of the national product

PROBLEMS…

1 Has a high percentage of migrant and the sector is a prominent employer for child labour.

Click to add Title3 Long working hours and lack of employment security.

Click to add Title4 Small capital with business expenditures indistinguishable from household expenses.

Click to add Title2 Generally a low wage and a low earning sector.

5 Organizations of people involved and level of management are of lower level.

Click to add Title6 Some of the works are seasonal which implies no work for some part of year.

Click to add Title7 Workers are unorganized into trade unions which adversely affect there bargaining power.

Click to add Title8 Health hazards are exists in number of occupations.

Causes……….

INFORMALSECTOR

UNEMPLOYMENTUNSAFE WOMEN

ILITERACY

POPULATION

CORRUPTION

POVERTY

Estimates of Employment in India

Industrial Category No. of persons (in millions)

Formal Sector Informal Sector

Agriculture 1.39 238.87

Non-Agriculture 26.68 131.5

Mining & Quarrying 1.01 1.25

Manufacturing 6.71 37.07

Electricity, Gas And Water 1 0.04

Construction 1.17 16.36

Trade, Hotels And Restaurants 0.49 40.37

Transport, Storage & Comm. 3.15 11.48

Financial Services 1.65 3.29

Community Services 11.49 21.64

All Sectors 28.07 (93%) 370.37

Year: 1999/00 (Total labour force: 406 million) (GDP share: 63%)

PROPOSED SOLUTIONS…

1.Solution for hawkers

Separate hawker’s

market which would

provide cleaner and

organized space for

commerce and also

provide security for

their shops.

Government should

build proper shops

(on roadside) which

would provide them

with secured shops,

which in turn would

keep the city clean and

help in land

management.

…FEW MORE

2

.

3

.

4

Labour union

should be elected

among

unorganized

industrial labours

to have direct

contact with higher

authority for

betterment of

labour grade

Awareness

programme

• by school students

in form of rally,

nukkad natak and

site visits

•by government in

form of various types

of advertissement(

eg:-tv ad,billboard)

Launch of

Karyodaya Jan

Abhiyan.*

DISTRICT

KARYODAYA JAN ABHIYAN..

*Central government should

launch a scheme in the

interest of the informal

sector under which

government can give

contract to private company

which would be in-charge

of creating departments in

every district for each state

which would keep a record

of all the informal workers

in that area

CENTRAL GOVERNMENT

STATE

PRIVATE COMPANY

…CONTINUED

All the informal sector workers would have to fill up a form

giving details about their family members and

background, business and annual income along with their

personal details .Each worker would be provided an

*enrollment number which would:-

help their family to receive compensations( in case of

medical emergency).

help them receive funds provided by the government.(as

mentioned in the **Acts for informal sector).

help them get business loans at low interest rate.

* and the registrations would be computerized

**Indira Gandhi National Old Age Pension Scheme.

IMPACT OF THE SOLUTION

SCALABILITY

SUSTAINABILITY

MEASUREMENT

From the number of

enrollment forms the

government can know

the actual number of

informal sector

population to be

worked upon.

During the initial

implementation stages

government can conduct

survey on monthly basis

and later on yearly basis

to take the feedback

from the population

whether they are being

benefited from the plan.

Along with the

survey government

can ask private

bodies to submit an

report on yearly

basis.

MERIT OF THE SOLUTION…

Many efforts and legislations have been laid down by the

government but unfortunately are very far from the reach

of the informal sector:

The Unorganized Sector Social Security Act (2008)

National Policy on Street Vendors (2009)

The reason mainly being corruption.

Corruption would be minimized if government gives

contract to private companies and people can get benefits

directly.

CHALLENGES and SOLUTIONS..

CHALLENGES

Legal:-People can show

false data to take

benefit of the scheme

SOLUTIONS

Submission of 1% of

the annual income

would be mandatory

to get the benefits of

the scheme(which

could act as source of

funding also)

Promotion of

scheme on a large

scale

Social :- Mass

unawareness about

the scheme

REFERENCES..

http://planningcommission.nic.in/reports/sereport/ser/restruc/stdy_rsturc_ch1.pdf

http://mospi.nic.in/mospi_new/upload/asi/ASI_main.htm?status=1&menu_id=88

http://indiancag.org/manthan/social-welfare-to-informal-sector-workers

http://www.wageindicator.org/main/documents/wwwmeetingjune06/informalindia

http://www.ilo.org/dyn/infoecon/docs/441/F596332090/women%20and%20men%20s

tat%20picture.pdf

http://www.halfmantr.com/display-national-issues/1046-informal-sector-in-india

http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-6454

REFERENCES…