Moneycontrol | Multi-Contributor Social Security: Time to reimagine social security contributions

It was recently in the news that the Employee State Insurance Corporation (ESIC) is considering extending its coverage to unorganised and gig sector workers. On July 24, 2023, Rajasthan became the first Indian state to pass a legislation aimed at providing social security benefits to gig workers. These are part of various attempts that governments have been making to extend social security beyond just the formal sector. Social security in India faces two main problems – coverage and financing. It covers mainly the organised sector, leaving out gig workers, unorganised sector workers, etc. Even within the organised sector, around 53 percent do not have any social security benefits, as per the Periodic Labour Force Survey (PLFS) report. In fact, more than 90 percent of India’s workforce is engaged in informal employment. Even the National Pension System (NPS), theoretically open to all, has very poor coverage – only around 6.2 crore subscribers as of March 2023. Read the full article here.