Editorial 2: Drop the piecemeal ways to social security for workers

Context

As India works to prepare its workforce for the future, it must build strong social protection systems that can handle changes in jobs and industries.

Introduction

India is moving ahead to bring online/app-based gig workers under the social security net. A central scheme is in progress and is currently awaiting Cabinet approval. This marks a significant shift toward recognizing and supporting the informal workforce.

Main Benefits Proposed Under the Scheme

Why the Pension Plan Is Unique

• Recognizes that gig workers may work for multiple platforms at the same time
• Allows each platform to contribute proportionally to the worker’s welfare
• Moves beyond the traditional job structure of one employer–one employee
• Aims to include informal sector workers often left out of formal schemes

Challenges & Broader Insights

• Current systems are often reactive—responding only when new types of workers appear
• This model reveals gaps in India's existing social security structure
• There's an urgent need for a forward-looking, flexible, and inclusive framework
• Social protection must evolve proactively to match the changing nature of work

India and the ILO Social Security Convention

• India is a founding member of the International Labour Organisation (ILO).
• However, India has not ratified the ILO Convention No. 102 (Social Security (Minimum Standards) Convention, 1952).
• This Convention sets minimum standards for social security across nations.

India’s Domestic Framework: The Code on Social Security

Key Concern: Overreliance on Welfare Boards

• The Code depends heavily on Welfare Boards for delivering benefits.
• Welfare Boards have historically shown inefficiencies and underperformance.

Examples of Welfare Board Mismanagement

Call for Reform

• Activists and civil society groups are demanding:
  • Stronger governance of welfare boards
  • Better transparency
  • Effective fund utilisation
  • Real-time monitoring and accountability mechanisms

The problem with incremental approaches

• A key argument for India’s welfare board-driven system is its ability to deliver targeted relief to specific worker groups.
  • For instance, beedi and cigarette workers in Karnataka have called for the revival of their discontinued welfare fund.
  • Gig workers are the current focus, but with technology and market disruptions, new informal worker groups will continue to emerge.
• However, this piecemeal approach has significant downsides:
  • It often fails to address the overall insecurity of informal work.
  • It can create arbitrary distinctions between sectors like gig work and domestic work.
  • These distinctions may lead to unfair eligibility thresholds, excluding many who also need protection.
• Moreover, the assumption that focusing on one worker segment, such as gig workers, will lead to the formalisation of the informal sector is unrealistic.
  • Gig work may expand in the future, but relying on it alone to solve deeper labour issues is overly optimistic.
• Therefore, India needs to move beyond fragmented schemes and adopt a holistic strategy:
  • Combine universal social protection with customised support for vulnerable groups.
  • Ensure all types of informal work are included, avoiding narrow or exclusive policies.

Conclusion: Towards universal social protection systems

As India aims to build a future-ready workforce, it's crucial to create resilient social protection systems that can adapt to workforce and sectoral shifts. This raises a key question: what is the most practical way forward. Though the Social Security Code faces implementation challenges, it seems here to stay. It places central oversight while giving States some flexibility within its framework. A realistic approach would be to treat the Code as a baseline, and build a stronger, inclusive, and universal system that ensures no worker is left behind.