e-shram registration is a stepping stone towards protection of informal workers

News: Data suggests that Indian economy is coming to its pre-pandemic status. But recovery for informal workers and circular migrants is far from complete, as the employment is yet to recover.  

Centre for Monitoring Indian Economy (CMIE) data shows that employment-population ratio for the period May-August 21 was 36.8 per cent compared to 39.6 per cent in the same period two years ago. 

About e-shram Portal 

To provide social security benefits to informal workforce Supreme court directed the government to launch inclusive and universal registration system, which was launched this year and named e- shram portal. 

MGNREGA and the National Food Security Act (NFSA) are also covered under e-shram initiative

Read more here. 

Although e-shram is a positive step, but there is need for a more comprehensive policy for universalising the social security structure. 

What are the implications of the absence of a comprehensive social security policy? 

It can lead to low income which lead to lower consumption which can further lead to higher hunger and poverty. 

It can increase the inequality. As the lack of social security leads to health and educational deprivation which fuels the cycle of inequality. 

Hinders equitable and sustainable growth, as per detailed empirical analysis supported by the ILO and UN.

What is the way forward?

Schemes should be clubbed and simplified: There are numerous schemes under the e-shram portal which have different eligibility criteria and require much more information than available from worker registration on the portal. The schemes require to be clubbed, and restructured with simpler eligibility criteria to make them universal.  

Specific and compulsory benefits of social security should be proposed as are mentioned in code for social security. 

Government needs to allocate sufficient funds for financing universal social protection. Except in the crisis year 2020-21, expenditure by the central government on all major social security/protection programmes has shown a declining trend; from about 1.64% of GDP in 2015-16 to 1.25% of GDP in 2019-20. 

In the current policy initiatives like code on social security, the role of states is limited to few areas. As states have been pivotal in extending social protection in the past, it is important that states and all relevant stakeholders are involved at all stages of the process. 

Source: This post is based on the article “e-shram registration is a stepping stone towards protection of informal workers” published in The Indian express on 23^rd Dec 2021.