Context:

• As per the International Labour Organization (ILO) India has significantly improved its social security coverage, doubling from 24.4% in 2021 to 48.8% in 2024.
• This reflects the government's efforts in expanding benefits across the workforce and ensuring economic security.

Government Initiatives and Achievements

• Union Minister for Labour and Employment Mansukh Mandaviya, citing the ILO World Social Security Report 2024-26, emphasized the government’s commitment to social security, skill development, and employment generation.
• He highlighted that 17.1 crore jobs were created between 2014 and 2024, with 4.6 crore added in the past year.
• The unemployment rate fell from 6% in 2017-18 to 3.2% in 2023-24, and female workforce participation rose from 22% to 40.3%. These improvements are attributed to progressive government policies fostering economic growth and social security.

Significance of Social Protection

Social protection ensures economic stability and inclusivity by:

• Supporting Vulnerable Groups: Securing children, women, elderly, and divyang individuals.
• Addressing Climate Adaptation: Reducing poverty, inequality, and social exclusion.
• Facilitating Economic Transition: Promoting greener jobs and sustainable economic practices.

Challenges in Social Protection

1.   Limited Coverage: Only 26% of women and 39% of men are covered by at least one social protection measure.

2.   Inadequate Financing: India spends just 5% of GDP on social protection (excluding healthcare), far below the global average of 13%.

3.   Automation Impact: AI could disrupt 12 million jobs in India by 2030 (McKinsey).

Key Legislations for Social Security

• Employees’ Provident Fund Organisation (EPFO): Established under the 1952 Act, it administers EPF, EPS (1995), and EDLI (1976).
• Code on Social Security, 2020: Extends social security to gig workers, informal sector employees, and the rural and urban poor, covering insurance, maternity benefits, and healthcare.
• National Pension System (NPS): A voluntary retirement scheme for employees across sectors, excluding the armed forces.

Major Social Security Schemes

• National Social Assistance Programme (NSAP): Welfare support for elderly, disabled, and widows in BPL households.
• e-Shram Platform: A national database for unorganized workers, including gig and migrant laborers.
• Pradhan Mantri Shram Yogi Maandhan (PM-SYM): A pension scheme for unorganized workers.
• Atal Pension Yojana (APY): A retirement savings scheme for low-income individuals aged 18-40.

Conclusion

India’s expanding social security coverage is a major step toward economic stability and social inclusion. However, challenges like limited informal sector coverage, low financial investment, and job displacement due to automation need attention. Strengthening funding and expanding coverage will be crucial for sustainable economic growth and welfare.