Financing a national minimum social security

Abstract

Social security is a concern for everybody. It mainly concerns itself with poverty, hunger, and social oppression. It affects our daily life: and protects our health, the family, old age and employment. Universally recognised as a basic human need, it makes a decisive contribution to establishing greater social justice, without which no lasting peace would be possible. In the Indian context, both Central and State Governments have taken a number of initiatives to extend social security cover to bona fide citizens. However, the social security entitlements backed by legislation have been mainly for workers in the organised sector while legislation-backed entitlements for the unorganised sector are limited for workers only in certain occupations. The ordinary citizens who do not work or are unemployed are entirely outside the purview of social security cover. The vast majority of the workers in India are self-employed or when employed will more likely to be in the unorganised lector. Agriculture, which accounts for close to 60 per cent of the labour force in the country is the best example for this. Only less than 10 per cent of the labour force is in the organised sector enjoying the full benefit of social security. Innovative and dedicated sources of funding for a comprehensive social security system for the unorganised sectors is a crying need today. The fund requirements for such a system will be substantial. To begin with, one should think in terms of a national minimum social security scheme.