[Answered] Evaluating a portable, Aadhaar-linked universal social security account, examine how India can transition from digital enrollment to comprehensive protection for informal workers.

Introduction

With nearly 90% of India’s workforce employed informally, Economic Survey 2025–26 highlights social protection gaps. Budget 2026–27 prioritizes digital welfare integration, making portable Aadhaar-linked social security indispensable for inclusive, resilient labour markets.

Evaluating a Portable, Aadhaar-Linked Universal Social Security Account

Current Landscape

1. e-Shram portal has registered 31+ crore unorganised workers through a 12-digit Universal Account Number (UAN). Example: NDUW database.
2.            Code on Social Security, 2020 legally recognizes gig, platform and unorganized workers. Example: Gig workers.
3. Yet, registration remains identity-centric rather than entitlement-centric. Example: Benefit fragmentation.

Why Digital Enrolment Alone is Insufficient?

1. Limited Portability of Benefits: Welfare schemes remain state-specific, excluding migrant workers during inter-state mobility. Social security credits are not portable across occupations. Example: Construction migrants & Seasonal labour.
2. Fragmented Welfare Architecture: Schemes such as PMJJBY, PMSBY, APY, AB-PMJAY, e-Shram function independently. Creates duplication, exclusion and administrative inefficiency. Example: Departmental silos.
3. Financing Deficit: Informal workers lack structured employer contributions unlike EPFO and ESIC beneficiaries. Gig economy expansion requires sustainable contributory financing. Example: Aggregator ecosystem.
4. Administrative & Digital Exclusion: Aadhaar-bank mismatches, digital illiteracy and documentation errors delay benefits. Women, elderly and migrant workers remain disproportionately excluded. Example: Gender divide.

How a Portable Aadhaar-linked Universal Social Security Account can Transform Protection

1. Economic Dimension: Pools fragmented schemes into a single social security account, reducing leakages. Enhances labour productivity through income security. Improves consumption resilience during shocks. Example: JAM Trinity & COVID lessons.
2. Social Dimension: Ensures healthcare, pension, accident insurance and disability benefits irrespective of location. Protects vulnerable migrants and informal women workers. Example: Ayushman Bharat portability
3. Technological Dimension: Aadhaar-enabled interoperability across databases. AI-enabled fraud detection and dynamic DBT targeting. Integration with National Career Service (NCS) for employment matching. Example: Example: RegTech, API integration, Skill mobility.
4. Constitutional & Legal Dimension: Advances Articles 14, 21, 38, 39, 41, 43 & 43A through universal social protection. Operationalizes the Code on Social Security, 2020 through uniform implementation. Example: Directive Principles.
5. Governance Dimension: Single-window architecture reduces bureaucratic overlap. Facilitates evidence-based policymaking using real-time labour data. Improves Centre-State coordination. Example: National Social Security Board.

Challenges in Implementation

1. Requires sustainable financing beyond annual budget allocations. Example: Social Security Fund.
2. Balancing fiscal prudence with universal coverage remains challenging. Example: State finances.
3. Interstate coordination across multiple welfare boards. Example: Federal complexity.
4. Seasonal nature of informal employment complicates contribution tracking. Example: Casual labour.
5. Digital privacy and cybersecurity concerns over Aadhaar-linked databases. Example: Data protection.
6. Inclusion of self-employed and micro-enterprises. Example: Street vendors.

Way Forward

1. Operationalise the Code on Social Security, 2020: Notify uniform rules for universal portability. Example: National standards.
2. Create Universal Social Security Fund: Finance through Centre, States, employer contributions and 1–2% platform aggregator cess. Example: Gig workers.
3. Integrate Digital Public Infrastructure: Link e-Shram, Ayushman Bharat, EPFO, ESIC, NCS and JAM into one interoperable ecosystem. Example: One Nation-One Account.
4. Strengthen Cooperative Federalism: Establish a National Social Security Board for interstate settlement and portability. Example: Clearinghouse mechanism.
5. Last-mile Delivery: Physical facilitation centres at PACS, CSCs, Panchayats and Urban Local Bodies. Example: Assisted registration.
6. Leverage Emerging Technologies: AI-enabled fraud detection, blockchain-based portability records and predictive welfare targeting. Example: Digital governance.

Conclusion

Transitioning from fragmented welfare delivery to a single-window, Aadhaar-linked universal social security account is both a constitutional imperative under Article-41 (Right to Work and Public Assistance) and an economic necessity. Fulfilling this transition will protect India’s informal labor force from falling into distress poverty, driving resilient and inclusive economic growth.