Sonia's council proposes Bill to fund social security

The size of the cess to be levied to fund the proposed social security programme for the unorganised sector may swell several-fold if another draft Bill, proposed by the Sonia Gandhi-led National Advisory Council (NAC), is accepted by the labour ministry.

This version of the Bill, named the Workers' Social Security Bill, 2005, envisages no fixed contribution from the government or members, drawn from workers in the unorganised sector. It recommends that a cess be levied not just on income of the organised sector but also on any goods and services that are taxable, to fund the programme.

The logic behind the Bill is that the responsibility of funding social security for unorganised sector labour should be on those who consume the goods and services provided by this class of workforce. Why employers should be exempt from this, is not clear.

This Bill differs from a similar Bill proposed by the national commission on enterprises in the unorganised sector led by Arjun Sengupta in that it talks of providing "floor level benefits" to workers in the unorganised sector whether they contribute to any scheme or not.

The workers, under a national security authority for the unorganised sector, will become members of various worker facilitation centres. A census of workers will be the first task of the authority, with each worker being given a unique identification social security number.

After this, whether the worker contributes his contribution (which is yet to be finalised) or not, he will be entitled to medical care, employment injury benefit and maternity benefits. The government will be liable to guarantee these benefits to workers under the law.

In case the member/worker is a regular contributor to the authority, he will be entitled to an old age pension and even survivor benefits.

Unlike the Sengupta drafted Bill, the NAC Bill does not propose a monolithic social security fund where the employee, employer and the government will contribute.

Rather, the NAC proposed Bill envisages constitution of several funds in order to finance different schemes like maternity benefits and health care.

The NAC Bill is far more ambitious. Unlike the Sengupta drafted Bill, it spells out in detail the benefits the government will have to provide. It also does not depend either on the employers or employees to contribute in anyway to the schemes.

While the civil society participation is solicited through the worker facilitation centres, which can be run through self-help groups, post offices and non-government organisations, this Bill envisages a overweening role for the government, much more so than Sengupta Bill.