Context:
India needs to strive to offer social security to all of its workers in a way that is both financially and administratively practical.
 
The current social security stance in India: 
Lack of Social Security: According to the Periodic Labour Force Survey Annual Report 2021–22, which has been referenced in the media, over 53% of the whole salaried workforce in India does not receive any social security payments. This effectively means that these workers are not eligible for a pension, health care plan, or disability insurance.
Low Utilisation: Budget allocation and low utilisation caused by social security policy pronouncements have rendered the programmes ineffective.
Systemic Issues: CAG audits expose substantial policy and implementation difficulties by exposing underutilised finances, stagnant pensions, and mismanagement in social security programmes.
Unfair Distribution: Only a relatively small portion (1.9%) of India's workforce, who are the poorest 20%, have any access to social security benefits. This demonstrates how unfairly the nation's social security benefits are distributed.
Gig Workers: The roughly 1.3% of India's working population who are gig workers do not have access to social security benefits. Due to their unconventional working arrangements, this group of workers frequently encounters difficulties acquiring social security coverage.
Poor Ranking: In a 2021 Mercer CFS ranking, India's social security system is ranked poorly (40th out of 43 nations). This shows that, in comparison to other nations, India's social security system is underperforming. 
Ineffective Implementation: It is highlighted that the National Social Assistance Programme, which was designed to offer pensions to elderly people, has stagnated at a very low contribution level. Additionally, there have been occasions where money received for social security purposes was not used appropriately.
Implementation Challenges: There is a need for economic viability and efficient management in order to provide comprehensive social security coverage for the whole Indian workforce. It draws attention to the difficulties of offering widespread social security benefits.
 
Schemes overseas: 
Social security systems around the world range greatly in terms of their structure, scope, and application.
  
Brazil: General Social Security Programme 
·         The contribution-based social security system in Brazil covers a variety of conditions, such as lost wages due to work-related injuries, disability, death, medical expenses, family responsibilities, and even unemployment.
·         While the Unified Health System provides healthcare coverage, worker support monies are used to pay for unemployment insurance. The National Treasury intervenes when there are inadequate funds.
·         The system strives to give workers and their families a safety net in a variety of life situations, including those who work in the unorganised sector.
 
Germany: Social Insurance System 
·         The foundation of Germany's social security system consists of both public assistance and social insurance programmes.
·         Health, pensions, long-term care, unemployment, and workplace accidents are all covered by social insurance. Both employers and employees make contributions.
·         Programmes for public assistance offer a fundamental level of help to people with low incomes or those who are unable to pay into the social insurance system.
 
Sweden: Universal Social Protection 
·         Sweden has a thorough social protection system that includes parental leave, unemployment benefits, healthcare, pensions, and more.
·         All citizens, regardless of work position, have access to social security benefits thanks to the system's universal coverage and significant tax funding. 
  
United States: Medicare and Social Security:
·         The social security system in the United States pays retirement, disability, and survivor payments to qualified people.
·         Medicare is a federally financed healthcare programme that mostly covers people 65 and older and some people with disabilities.
·         The American system, which offers targeted benefits for particular life events, is supported by payroll taxes.
 
Canada: Healthcare and Employment Insurance: 
·         Employment Insurance (EI), a component of Canada's social security system, offers temporary financial support to those who lose their employment or become ill or pregnant and are unable to work.
·         Canada's public health system offers universal coverage for medical treatments.
 
Measures to be taken: 
Increase the use of the contribution-based system for formal workers: Increase the number of formal workers who are covered by the Employees' Provident Fund Organisation (EPFO) system. In order to do this, both employers and employees must make larger EPFO system contributions.
Contributions in Part from Informal Workers: Introduce a system of partial social security contributions for undocumented workers who earn a significant income, such as those who are self-employed or employed by unregistered businesses. By promoting the formalisation and participation of unofficial businesses, this might be accomplished.
Government Assistance for Low-Wage and Unemployed Workers: People who are unemployed, have given up looking for work, or make insufficient money should get social security assistance, which should be provided by the government. This might cover measures for a minimum wage or other types of assistance. 
Reform and Enforcement of the Social Security Code: The Code on Social Security, which aims to establish a legal framework for social security, should be continued and strengthened. For gig workers and those employed in the unorganised sector, this entails providing life insurance, disability insurance, accident insurance, maternity and health care benefits, old-age protection, and child care facilities.
Simplification and digitization: The process for enrolling workers in social security programmes should be improved and made simpler. Even if the e-Shram platform has improved, more work needs to be done to promote registration and lessen the strain on unofficial workers. Employers ought to be encouraged to take part in the process as well.
Special focus on vulnerable workers: Pay specific attention to the requirements of domestic workers, who frequently experience employment uncertainty and a lack of benefits.
Support for Migrant Workers: Offer assistance to migrant workers who frequently experience prejudice and have difficulty obtaining social services. This demographic could benefit from the expansion of social services like child care.
Reduce Barriers and Streamline Procedures: Eliminate current limitations on the ability to transfer social security benefits and cooling-off periods. To encourage more employees to enlist, streamline the registration procedure.
Promote employer accountability: Encourage the creation of a system where all employers, including temporary ones, are obligated to pay into the social security system. This would entail making social security benefits for informal employers mandatory rather than optional.
 
Need to strengthen existing schemes: 
·         To ensure that more workers are aware of the benefits offered by social security, we need to make a more concerted effort to increase awareness of the programme.
·         Organisations like the Self-Employed Women's Association, which manages Shakti Kendras (worker facilitation centres), may receive funding for campaigns (particularly for women) that aim to educate people more about their rights with regard to social security as well as the services and government-sponsored programmes.
·         In order to deliver universal social security to all of its labour force, India must combine its current social security programmes and ad hoc measures.
·         India's workforce is experiencing rising job insecurity as a result of the proliferation of hire-and-fire policies and increasing demand for jobs. 
  
Conclusion
Stronger policy implementation, appropriate funding distribution, open resource utilisation, and effective oversight mechanisms are required. The intended recipients of social security programmes may nevertheless have difficulties and insufficient support if these problems are not resolved. The Code on Social Security, proposed by the government in 2020 is the right step towards establishing a regulatory framework for social security for all categories of employees, including those in the gig economy and unorganised sectors.
 
LTX Mains Question
 Q. India's Social Security regulations require revision. In this context, discuss about the difficulties faced by social security programmes and make suggestions for solutions.