Social security Bill for unorganised sector on the anvil

The much-awaited comprehensive umbrella legislation for 40 crore unorganised sector workers may soon see the light of the day with the labour ministry preparing a Cabinet note on it.

The long-pending Bill aims at providing social security benefits to the unorganised sector labourers who constitute 93 per cent of the country's total workforce, official sources today said.

"The Bill will be in line with the UPA government's commitment in the National Common Minimum Programme (NCMP)," they said.

Expressing concern over the plight of the unorganised sector workers, Prime Minister Manmohan Singh had about a year back directed that a committee of secretaries look into issues involving implementation of such a law.

When Oscar Fernandes took charge of the labour ministry in October last year, he had said that all efforts would be made to introduce the Bill in the winter session of Parliament. But, his efforts did not succeed.

The sources said that if the Cabinet approved the draft, the Bill could be introduced in the coming Budget session.

The sources said that two options would be put up before the Cabinet. The first option is to introduce the scheme in a phased manner and launch a life insurance package at the initial stage for a premium of Rs 200 per head.

While workers below poverty line would not have to pay any premium, those above it would pay a nominal Rs 60, with the Centre and states sharing the balance amount.

The insurance will provide Rs 30,000 cover for natural death, Rs 75,000 for accidental death or total disability and Rs 37,500 for partial permanent disability.

The second option is based on the suggestions of the National Commission for Enterprises in the Unorganised Sector. The Commission had recommended a comprehensive package, including health and life insurance benefits, along with an old age pension.