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LATEST NEWS UPDATES | Cabinet okays fund for unorganized sector

Cabinet okays fund for unorganized sector

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published Published on Jul 29, 2011   modified Modified on Jul 29, 2011

-The Times of India

 

The Union Cabinet on Thursday cleared setting up a national level social security fund for unorganized workers. The proposed National Social Security Fund will have an initial corpus of Rs 1,000 crore and will benefit 43.3 crore workers in the unorganized sector. Unorganized workers form the most significant part of total workers in the country and suffer from cycles of employment and absence of social security protection.

I&B minister Ambika Soni said, "The fund will support social security schemes for various segments of unorganised workers as most of these workers do not have any social security cover in the form of life and disability insurance, health care and pensions."

The fund was announced in the budget by finance minister Pranab Mukherjee and is expected to support schemes for weavers, toddy tappers, rickshaw pullers and bidi workers. Mukherjee had said the decision recognized the need for providing social security to workers in the unorganized sector, and as a follow-up to the unorganized Sector Workers Social Security Act, 2008.

The fund will be administered by the National Social Security Board which is authorized to recommend social security schemes including life and disability cover, health and maternity benefits, old age protection and any other benefit as may be determined by the government for unorganized workers.

The National Sample Survey Organization had recorded total employment in both organized and unorganized sector as 45.9 crore workers (2004-2005), of which unorganized workers formed 94%. Out of the 43.3 crore unorganized workers, 26.9 crore workers were employed in the agriculture sector, 2.6 crore in construction and the remaining in manufacturing activities, trade and transport, communication and services. A large number of unorganized workers were home based and were engaged in occupations like bidi-making, agarbatti-making, papad making, tailoring and embroidery work.

Incidentally, women workers in unorganized sector were rapidly increasing and studies had shown that this segment continued to suffer from unequal wages and poor working conditions.

The Times of India, 29 July, 2011, http://timesofindia.indiatimes.com/india/Cabinet-okays-fund-for-unorganized-sector/articleshow/9403072.cms


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