8.1 The term unorganized worker has been Construction Workers Welfare (Cess)Act, 1996 etc.

defined under the Unorganized Workers' Social are directly or indirectly applicable to the workers in
Security Act, 2008, as a home based worker, self- the unorganized sector also.
employed worker or a wage worker in the
unorganized sector and includes a worker in the 8.4 The Ministry of Labour is also operating
organized sector who is not covered by any of the Welfare Funds for some specific categories of
Acts mentioned in Schedule-11 of Act i.e. the workers in the unorganized sector like beedi
Employee's Compensation Act, 1923 (3 of 1923), workers, cine workers and certain non-coalmine
the Industrial Disputes Act, 1947 (14 of 1947), the workers. The funds are used to provide various
Employees' State Insurance Act, 1948 (34 of kinds of welfare activities to the workers in the field
1948), the Employees Provident Funds and of health care, housing, education assistance for
Miscellaneous Provision Act, 1952 (19 of 1952), the children, water supply etc.
Maternity Benefit Act, 1961 (53 of 1961) and the
Comprehensive Legislation for Workers in
Payment of Gratuity Act, 1972 (39 of 1972).
the Unorganized Sector
8.2 As per the survey carried out by the
8.5 In order to ensure welfare of workers in
National Sample Survey Organization in the year
the unorganized sector, the Ministry of Labour &
2011-12, the total employment in both organized
Employment has enacted the Unorganized
and unorganized sector in the country was of the
Workers' Social Security Act, 2008. The Act has
order of 47 crore. Out of this, about 8 crore were in
come into force with effect from16.05.2009. The
the organized sector and the balance of 39 crore in
Central Rules under the Act have been framed.
the unorganized sector. The workers in the
unorganized sector constitute more than 90 8.6 The Salient features oftheAct are as under:
percent of the total employment in the country. A
large number of unorganized workers are home }> Section (2) provides for the definitions,
based and are engaged in occupations such as including those relating to unorganised worker,
beedi rolling, agarbatti making, papad making, self-employed and wage worker.
tailoring, and embroidery work.
}> Section 3(1) provides for formulation of
8.3 The unorganized workers suffer from schemes by the Central Government for
cycles of excessive seasonality of employment, different sections of unorganised workers on
lack of formal employer-employee relationship matters relating to (a) life and disability cover;
and absence of social security protection. (b) health and maternity benefits; (c) old age
Several legislations such as the Employee's protection (d) any other benefit as may be
Compensation Act, 1923; the Minimum Wages Act, determined by the Central Government.
1948; the Maternity BenefitAct, 1961; the Contract
}> Section 3(4) provides for formulation of
Labour {Abolition and Prohibition) Act, 1970;
schemes relating to provident fund,
Building and Other Construction Workers
employment injury benefits, housing,
(Regulation of Employment & Conditions of
educational schemes for children, skill up
Service) Act, 1996; and the Building and Other

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MINISTRY OF LABOUR & EMPLOYMENT

gradation, funeral assistance and old age available to them(b) facilitate registration of
homes by the State Governments. workers by the district administration and
enrollment of unorganised workers.
> Section 4 relates to funding of the schemes
formulated by Central Government. > Section 10 provides for eligibility criteria for
registration as also the procedure for
> Section 5 envisages constitution of National
registration under the Act.
Social Security Board under the chairmanship
of Union Minister for Labour & Employment > Sections 11-17 contain miscellaneous
with Director General (Labour Welfare) as provisions for implementing the Act.
Member Secretary and 34 nominated
members representing Members of 8.7 The Unorganised Workers' Social Security
Parliament, unorganised workers, Rules, 2009 under the Act have been framed and
employers of unorganised workers, civil the National Social Security Board was constituted
society, Central Ministries and State on 18.08.2009. The National Board shall
Governments. recommend social security schemes viz. life and
disability cover, health and maternity benefits, old
> Provision for adequate representation to age protection and any other benefit as may be
persons belonging to the Scheduled Castes,
determined by the Government for unorganized
the Scheduled Tribes, the Minorities and
workers. The National Board has held eight
Women in the Board has been made.
meetings so far and recommended extension of
> The National Board would recommend the Rashtriya Swasthya Bima Yojana (RSBY),
Central Government suitable schemes for Janshree Bima Yojana (JBY) and Old Age pension
different sections of unorganised workers; to certain categories of unorganized workers.
monitor implementation of schemes and advise
the Central Government on matters arising out 8.8 Apart from the above, a Health Insurance
of the administration oftheAct. Scheme namely, the 'Rashtriya Swasthya Bima
Yojana for BPL families (a unit of five) in
> Section 6 has provision for constitution of Unorganized Sector was formally launched on
similar Boards atthe State level. October, 2007. The scheme became operational
from 1st April, 2008 and benefits under the scheme
> Section 7 relates to funding pattern of
started accruing to the beneficiaries. The benefits
the schemes formulated by the State
under the scheme include:
Governments.

> Section 8 prescribes record keeping functions

> Beneficiaries are entitled to smart card based
cash less health insurance cover of Rs. 30,000
by the DistrictAdministration. For this purpose,
the State Government may direct (a) the per family per annum on a family floater basis.
District Panchayat in rural areas; and (b) the > Coverage of all pre-existing diseases.
Urban Local Bodies in urban areas to
perform such functions. > Coverage of hospitalization expenses,
including maternity benefit.
> Section 9 provides for setting up of Workers'
Facilitation Centre to (a) disseminate > Payment of transportation cost of Rs. 100/-per
information on social security schemes visit.

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8.9 Till 31.03.2015, the RSBY is being only to aged destitute but to all citizens above the
implemented in 28 States/UTs and 3.85 crore smart age of 60 years and living below the poverty line.
cards have been issued. RSBY has been extended For persons above the age of 80 years the amount
to building and other construction workers has been raised from Rs.200/- to Rs.500/- per
registered under the Building and other month. The States have been asked to top up with
Construction Workers (Regulation of Employment the Central Government per capita grant of
and Condition of Service) Act, 1996 and street Rs.200/-per month. More than 2.18 crore persons
vendors, beedi workers, domestic workers and have been covered upto 31.03.2015.
MGNREGA beneficiaries who have worked for
more than 15 days during the preceding financial 8.12 To encourage the workers from the
year and domestic workers. From 01.04.2015 unorganized sectors to voluntarily save for their
onwards, this Rashtriya Swasthya Bima Yojana has retirement and to lower the cost of operations of
been transferred to Ministry of Health and Family the New Pension Scheme (NPS) for such
Welfare. subscribers, the Central Government recently
launched a co-contributory pension scheme
8.10 With a view to providing death and disability called "Atal Pension Yojana" on 09.05.2015. The
cover to rural landless households between age 18- Subscribers would receive a fixed minimum
59 years, the Aam Aadmi Bima Yojana has also pension of Rs. 1000 per month, Rs. 2000 per
been launched on 2nd October, 2007. Under this month, Rs. 3000 per month, Rs. 4000 per month,
scheme, the head of the family or any earning Rs. 5000 per month, at the age of 60 years,
member in the family will be insured. The Central depending on their contributions, which itself would
Government will bear 50% of the premium of vary on the age of joining the APY. The Central
Rs.200/- per year per person and the remaining Government would also co-contribute 50 percent of
50% of the premium will be borne by State the total contribution or Rs. 1000 per annum,
Government. The benefits under the scheme whichever is lower, to each eligible subscriber
include a cover of Rs.30,000 in case of natural account, for a period of 5 years, that is, from 2015-
death and Rs. 75,000 in case of death due to 16 to 2019-20, to those who join the NPS before
accident or total permanent disability (lost to two 31"'December, 2015 and who are not members of
eyes or two limbs or loss of one eye and one limb in any statutory social security scheme and who are
accident). In case of partial permanent disability not Income Tax payers. The pension would also be
(loss of one eye or one limb in an accident), the available to the spouse on the death of the
insurance cover would be Rs.37 ,500/. The Scheme subscriber and thereafter, the pension corpus
also envisages an add-on benefit of providing would be returned to the nominee. The minimum
scholarship upto a maximum of two children of age of joining APY is 18 years and maximum age is
beneficiary studying 9th to 12th Standard at the rate 40 years. The benefit of fixed minimum pension
of Rs.300/- per quarter per child. More than 4.32 would be guaranteed by the Government.
crore lives were covered under AABY as on
31.03.2015. 8.13 In India approximately 93% of workers are
in the unorganized sector. The various social
8.11 The Government of India has recast the security schemes are currently being run by
National Old Age Pension Scheme. The new different Ministries/ Departments under Schedule II
Scheme "Indira Gandhi National Old Age Pension of the "Unorganized Workers Social Security Act
Scheme (IGNOAPS)" was launched on (UWSSA), 2008" for welfare of the unorganized
19.11.2007. Old age pension is now provided not workers and agencies at the State level, with

ANNUAL REPORT 2015- 16

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MINISTRY OF LABOUR & EMPLOYMENT

different eligibility criteria, enrolment processes incurred by an employer (the Government has
and benefits there under, etc. notified the cess@ 1%). The Fund is to be used for
providing financial assistance to the families of
The Building and Other Construction beneficiaries in case of accident, old age pension,
Workers housing loans, payment of insurance premia,
children's education, medical and maternity
8.14 The construction workers constitute one of
benefits, etc.
the largest categories of workers in the
unorganized sector. According to the Sample 8.18 All State Governments and Union
Survey conducted by NSSO in 2011-12, about 5.02 Territories have constituted State Welfare Boards.
crore workers are employed in the construction The Government of Tamil Nadu has been
activities. The Government has enacted the implementing its own Act. Till 30.09.2015, an
following two legislations for the construction amount of Rs.21985.07 crore approximately
workers:- has been collected as Cess by the State
Governments and Union Territories and an amount
~ The Building and Other Construction of Rs.4162.99 crore has been spent on welfare
Workers (Regulation of Employment and schemes formulated by them.
Conditions of Service) Act, 1996.
Migrant Workers and the Inter-State Migrant
~ The Building and Other Construction Workmen
Workers' Welfare Cess, Act, 1996;
8.19 According to the 2001 Census, 314.54
8.15 Further, the Building and Other Construction million persons have changed their place of
Workers (RECS) Central Rules, 1998 have been residence within the country and out of this, 29.90
notified on 19.11.1998. million or 9% have left their place for work. The
Inter-State Migrant Workmen (Regulation of
8.16 The Act is applicable to every establishment Employment and Conditions of Service) Act, 1979
which employs 10 or more workers in any building was enacted to protect the rights and safeguard the
or other construction work. The Act does not apply interests, of migrant workers.
to individual. There is also provision of constitution
of Central and the State Advisory Committees to 8.20 The Act regulates the employment of inter-
advise the appropriate Governments on matters state migrant workmen and provides for their
arising out of administration of the law besides conditions of service. It applies to every
constitution of Welfare Boards by the State establishment, and the contractor, who employ five
or more inter-state migrant workmen. The Act has
Governments and registration of beneficiaries
provision for issue of Pass-Book to every inter-state
under the Fund and provision fortheiridentitycards
migrant workmen with full details, payment of
etc.
displacement allowance equivalent to 50% of
8.17 These legislations provide for regulating the monthly wages or Rs.75/- which ever is higher,
employment and conditions of service, safety and payment of journey allowance including payment of
health and welfare measures for the construction wage during of the period of journey, suitable
workers by setting up a Welfare Fund at the State residential accommodation, medical facilities and
protective clothing, payment of wages, equal pay
level to be financed by contribution made by
for equal work etc.
beneficiaries, levy of cess on all construction works
at rates between 1 to 2% of the construction cost 8.21 The main responsibility for enforcement of

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the provision of the Act lies with the Central and the Programme (NFFWP), Indira Awass Yojna (lAY),
State Governments I Union Territories for the Integrated Wastelands Development Programme
establishment falling in the Central and State (IWDP), Drought Prone Areas Programme (DPAP),
Sphere respectively. Desert Development Programme (DDP) etc.
Further, the Government have alsoenacted the
8.22 The problem of migration is sought to be National Rural Employment Guarantee Act to
checked through a multi dimensional course of provide 100 days guaranteed employment to rural
action through rural development, provision of households.
improved infrastructural facilities, equitable
dispersal of resources to remove regional 8.23 Ministry of Labour & Employment and State
disparities, employment generation, land reforms, Governments of Andhra Pradesh and Odisha have
increased literacy, financial assistance etc. In order signed an MoU in June 2012 to facilitate
to generate better employment opportunities at strengthening of Inter-State Coordination
State level, the Government have launched a Mechanism for smooth implementation of the
number of schemes like Swarnjayanti Gram activities in source and destination areas of
Swarozgar Yojna (SGSY), Pradhan Mantri Gram migrant workers . Similar MoU have been among
Sadak Yojana (PMGSY), Sampoorna Gramin the State Governments of Uttar Pradesh, Bihar,
Rozgar Yojana (SGRY), National Food For Work Jharkhand and Chhattisgarh in February, 2013.

ANNUAL REPORT 2015- 16

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MINISTRY OF LABOUR & EMPLOYMENT

ANNUAL REPORT 2015- 16

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