THE UNORGANISED WORKERS’ SOCIAL

SECURITY ACT, 2008

CONCEPT NOTES
Contents
1 History ....................................................................................................................................................2
2 Objective.................................................................................................................................................3
3 Section 1 – Application ...........................................................................................................................3
4 Section 2 - Definitions ............................................................................................................................3
5 Section 3 - Framing of scheme ...............................................................................................................5
6 Section 4 - Funding of Central Government Schemes ...........................................................................5
7 Section 5 - National Social Security Board .............................................................................................6
8 Section 6 - State Social Security Board ...................................................................................................7
9 Section 7 - Funding of State Government Schemes ...............................................................................7
10 Section 8 - Record keeping by District Administration .......................................................................8
11 Section 9 - Workers facilitation centres .............................................................................................8
12 Section 10 - Eligibility for registration and social security benefits ...................................................8

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 1 History
The history of "Unorganised Workers’ Social Security"
encapsulates the evolution of policies and practices
aimed at providing safety nets for workers in the
informal sector across the globe, including India. This
sector includes a wide array of workers who are not
formally employed or do not have stable employment
contracts, making them vulnerable to economic
fluctuations and without the benefits typically afforded
to organized sector employees.

Introduction

Emergence of the Concept: The concept of social

security for unorganised workers stems from the broader recognition of workers' rights and the
necessity to protect those who fall outside the formal employment structures. It acknowledges
the significant proportion of the global workforce engaged in informal employment who lack
access to social security benefits like healthcare, maternity leave, and pensions.

Global Scenario

Diverse Approaches: Countries around the world have adopted various strategies to extend social
security to unorganised workers. These range from state-funded social assistance programs to
contributory social insurance schemes, and hybrid models that combine elements of both.

Latin America: Many countries have introduced innovative programs that target specific groups
of informal workers, such as agricultural laborers and domestic workers, offering them access to
pensions and health insurance.

Africa: Efforts here often focus on expanding existing social insurance schemes to include informal
sector workers, sometimes supported by subsidies to make contributions affordable.

Asia: Some Asian countries have made significant strides in incorporating informal workers into
national social security systems, providing a mix of contributory and non-contributory benefits.

Indian Scenario

Policy Evolution: India's approach to unorganised workers' social security has evolved over the
years, from initial fragmented efforts to more comprehensive legislation.

Early Initiatives: Early efforts were largely piecemeal, focusing on specific categories of workers
with schemes for healthcare, maternity benefits, and insurance.

The Unorganised Workers’ Social Security Act, 2008: A landmark in India's social security efforts,
this Act aimed to provide a legal framework for securing the welfare of unorganised workers,
mandating the creation of schemes for life and disability cover, health and maternity benefits, old
age protection, and any other benefit as deemed suitable.

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 Implementation Challenges and Successes:

Challenges: The vast diversity of the unorganised sector, coupled with issues of enforcement and
the reach of schemes, has made implementation challenging. There's also the problem of ensuring
consistent contributions from workers and employers.

Successes: Despite challenges, there have been successes in increasing awareness and enrollment
in social security schemes among unorganised workers, particularly in areas like healthcare access
and insurance coverage.

Future Directions: Looking forward, there is a continuous need for innovative policies that can
adapt to the changing nature of informal work, especially in the context of technological
advancements and the gig economy. Strengthening the implementation mechanism and
enhancing the financial sustainability of social security schemes remain critical areas of focus.

The history of "Unorganised Workers’ Social Security" reflects an ongoing journey towards
achieving social justice and equity for all workers, recognizing the inherent value of their
contribution to the economy irrespective of their employment status.

2 Objective
➢ To provide for the social security and welfare of unorganised workers and for other matters
connected or incidental.

3 Section 1 – Application
➢ It extends to the whole of India.

4 Section 2 - Definitions
➢ “Employer” means:
• A person or an association of persons who has engaged or
employed an unorganised worker either directly or
otherwise for remuneration.

➢ “Home based worker” means:

• A person engaged in the production of goods or services for
an employer in his or her home or other premises of his or
her choice other than the workplace of the employer, for
remuneration, irrespective of whether or not the employer provides the equipment,
materials or other inputs.

➢ “Identity card” means:

• A card, document or certificate issued to an unorganised worker by the District
Administration.

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 ➢ “National Board” means:
• National Social Security Board for unorganised workers.
➢ “Registered worker” means:
• An unorganised worker registered under Section 10.

➢ “Self-employed worker” means:

• Any person who is not employed by an employer but engages himself or herself in any
occupation in the unorganised sector.
▪ Subject to a monthly earning of an amount as may be notified by the Central
Government or the State Government from time to time or
▪ Holds cultivable land subject to such ceiling as may be notified by the State
Government

➢ “Unorganised sector” means:

• An enterprise owned by individuals or self-employed
workers and engaged in the production or sale of goods
or providing service of any kind whatsoever, and where
the enterprise employs workers, the number of such
workers is less than 10.

➢ “Unorganised worker” means:

• A home-based worker, self-employed worker or a wage
worker in the unorganised sector and includes a worker
in the organised sector who is not covered by any of the Acts mentioned in Schedule II
to this Act

➢ “Wage worker” means:

• A person employed for remuneration in the unorganised
sector, directly by an employer or through any contractor,
▪ Irrespective of place of work,
▪ Whether exclusively for one employer or for one or
more employers,
▪ Whether in cash or in kind,
▪ Whether as a home-based worker, or as a temporary
or casual worker, or as a migrant worker, or workers

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 employed by households including domestic workers, with a monthly wage of an
amount as may be notified by the Central Government and State Government.

5 Section 3 - Framing of scheme

➢ The Central Government shall formulate and notify, suitable welfare schemes for
unorganised workers on matters relating to:
• Life and disability cover
• Health and maternity benefits
• Old age protection
• Any other benefit as may be determined by the Central Government
➢ The schemes included in the Schedule 1 shall be deemed to be the welfare schemes:

➢ The Central Government may amend the Schedules annexed to this Act
➢ The State Government may formulate and notify, suitable welfare schemes for unorganised
workers, including schemes relating to:
• Provident fund
• Employment injury benefit
• Housing
• Educational schemes for children
• Skill upgradation of workers
• Funeral assistance
• Old age homes

6 Section 4 - Funding of Central Government Schemes

➢ Any scheme notified by the Central Government may be:
• Wholly funded by the Central Government
• Partly funded by the Central Government and partly
funded by the State Government
• Partly funded by the Central Government, partly funded
by the State Government and partly funded through
contributions collected from the beneficiaries of the
scheme or the employers as may be prescribed by the
Central Government.

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 ➢ Every scheme notified by the Central Government shall provide for such matters that are
necessary for the efficient implementation of the scheme including the matters relating to:
• Scope of the scheme
• Beneficiaries of the scheme
• Resources of the scheme
• Agency or agencies that will implement the scheme
• Redressal of grievances
• Any other relevant matter

7 Section 5 - National Social Security Board

➢ The Central Government shall constitute a National Board to be known as the National Social
Security Board to exercise the powers conferred on, and to perform the functions assigned to
it.
➢ The National Board shall consist of the following
members, namely:
• Union Minister for Labour and Employment-
Chairperson, ex officio
• The Director General (Labour Welfare)-Member-
Secretary, ex officio
• 34 members to be nominated by the Central
Government, out of whom:
▪ 7 representing unorganised sector workers
▪ 7 representing employers of unorganised sector
▪ 7 representing eminent persons from civil society
▪ 2 representing members from Lok Sabha and 1 from Rajya Sabha
▪ 5 representing Central Government Ministries and Departments concerned
▪ 5 representing State Governments
➢ The Chairperson and other members of the Board shall be from amongst persons of eminence
in the fields of labour welfare, management, finance, law and administration.
➢ The term of the National Board shall be 3 years
➢ The National Board shall meet at least thrice a year
➢ The National Board shall perform the following functions, namely:

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 8 Section 6 - State Social Security Board
➢ Every State Government shall, constitute a State Board to be known as (name of the State)
State Social Security Board to exercise the powers conferred on, and to perform the functions
assigned to it.
➢ The State Board shall consist of the following members, namely:
• Minister of Labour and Employment of the concerned State—Chairperson, ex officio
• Principal Secretary or Secretary (Labour) —Member—Secretary, ex officio
• 28 members to be nominated by the State Government
▪ 7 representing the unorganised workers
▪ 7 representing employers of unorganised workers
▪ 2 representing members of Legislative Assembly of the concerned State
▪ 5 representing eminent persons from civil society
▪ 7 representing State Government Departments concerned
➢ The term of the State Board shall be 3 years
➢ The State Board shall meet atleast once in a quarter
➢ The State Board shall perform the following functions, namely:

9 Section 7 - Funding of State Government Schemes

➢ Any scheme notified by the State Government may be:
• Wholly funded by the State Government
• Partly funded by the State Government, partly funded through contributions collected
from the beneficiaries of the scheme or the employers as may be prescribed in the
scheme by the State Government
• The State Government may seek financial assistance from the Central Government for
the schemes formulated by it.
• The Central Government may provide such financial assistance to the State
Governments for the purpose of schemes

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 10 Section 8 - Record keeping by District Administration
➢ The record keeping functions shall be performed by the District Administration:
• However, the State Government may direct that the record keeping function shall be
performed by:
▪ The District Panchayat in rural areas
▪ The Urban Local Bodies in urban areas

11 Section 9 - Workers facilitation centres

➢ The State Government may set up such Workers' facilitation centres to perform the following
functions, namely:

12 Section 10 - Eligibility for registration and social security benefits

➢ Every unorganised worker shall be eligible for registration subject to the fulfilment of the
following conditions, namely:
• He or she shall have completed 14 years of age
• A self-declaration by him or her confirming that he or she is an unorganised worker
➢ Every eligible unorganised worker shall make an application to the District Administration
for registration
➢ Every unorganised worker shall be registered and issued an identity card by the District
Administration which shall be a smart card carrying a unique identification number and shall
be portable
➢ If a scheme requires a registered unorganised worker to make a contribution, he or she shall
be eligible for social security benefits under the scheme only upon payment of such
contribution
➢ Where a scheme requires the Central or State Government to make a contribution, the Central
or State Government, shall make the contribution regularly in terms of the scheme.

Concept Check
Q. Which one of the following schemes is not a Social Security Scheme under Unorganized Workers’
Social Security Act, 2008?
A. National Family Benefit Scheme
B. Janshree Bima Yojana
C. Employee’s Pension Scheme
D. Rashtriya Swasthya Bima Yojana

Ans: C
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 Concept Check
Q. How many members are to be nominated by the Central Government to the National Social
Security Board as per the provisions of the Unorganized Worker’s Social Security Act, 2008?
A. 18
B. 20
C. 26
D. 34

Ans: D

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