Constitution of National Social Security Fund for Unorganised Sector Workers

The Union Cabinet has approved the constitution and operation of a National Social Security Fund for unorganised workers with an initial allocation of Rs.1000 crore to support schemes for weavers, toddy tappers, rickshaw pullers, beedi workers etc.

This follows the announcement made by the Finance Minister in his budget speech for 2010-11.

This Fund will support social security schemes for various segments of unorganised workers as most of these workers (around 433 million) do not have any social security cover in the form of life and disability insurance, health care and pensions. This would facilitate formulation of social security schemes for unorganized workers. The Fund will also facilitate evolution and funding of schemes by various Departments which are currently involved in the welfare of these segments of workers.

The Ministry of Labour & Employment will be the nodal Ministry for the operation of the Fund.

Background:

More than 94% of the workforce is in the unorganized sector. Recognizing the need for providing social security to these workers and as a follow up to the Unorganized Workers’ Social Security Act, 2008, the Finance Minister in his Budget Speech for 2010-2011, announced setting up a National Social Security Fund for unorganized workers.

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