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Unorganised sector Bill likely in April

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Rupesh Janve New Delhi
Last Updated : Feb 05 2013 | 12:21 AM IST
The Ministry of Social Justice and Empowerment plans to introduce "Unorganised Workers Social Security Bill, 2007" in the second part of the Budget session this April.
 
The Bill seeks to provide pension and health insurance coverage for nearly 7 crore below poverty line (BPL) workers.
 
An amount of Rs 26,000 crore is expected to be earmarked for the coverage plan, that is expected to be rolled out from 2007, the first year of the 11th Plan period. The above poverty line (APL) workers will be covered from the fourth and fifth year of the 11th Plan.
 
The government's decision will provide a measure of social security to the unorganised sector. The ministry pointed out that around 90 per cent of the workers in the country were covered by neither any formal system of social security nor regulation of work conditions.
 
The ministry has recommended a premium of Rs 2,400 for pension and Rs 370.5 for health insurance for BPL workers.
 
In the first year, a total expenditure of Rs 3,027 would be incurred for BPL workers of which, the Centre will bear Rs 2751 and state will provide Rs 277 crore.
 
In the first year, the government will cover 2.9 crore workers and allocate Rs 1,078 crore for providing health insurance to the BPL workers.
 
The allocation for insurance is expected to be Rs 13,000 crore for BPL workers during the 11th Five Year Plan. In case of pension scheme, the government will allocate Rs 1,368 crore and increase the amount subsequently. During the next plan (2007-12) an amount of Rs 13,872 crore is expected to be earmarked for pension.
 
Official sources said, "The Centre will bear the cost of pension while the other costs will be shared in the ratio of 75:25 between the Centre and the state."
 
In case of APL workers, the ministry had worked out a premium of Rs 524.5 per person per month for the provident fund and a premium of Rs 370.5 for health insurance.
 
The APL workers will have to pay one third of the premium and the rest would be borne by the Centre and state government, while the administrative cost at 5 per cent of total expenditure will be borne by the Centre.
 
Sources further added that APL workers will start getting benefits from the fourth and fifth year of the 11th Plan, during which, the Centre would allocate Rs 12,838 crore for health insurance and Rs 18,714 crore for provident fund.
 
APL workers will be covered at 10 per cent per year, sources said.
 
SALIENT FEATURES
 
  • Bill seeks to provide pension and health insurance coverage for nearly 7 crore BPL workers

  • Rs 26,000 crore is expected to be earmarked for the coverage plan, expected to be rolled out from 2007

  • The above poverty line workers will be covered from the fourth and fifth year of the 11th Plan

  • The ministry has recommended a premium of Rs 2,400 for pension and Rs 370.5 for health insurance for BPL workers
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    First Published: Jan 24 2007 | 12:00 AM IST

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