Providing Social welfare to Informal sector workers

Team name :- VYATYASA Team members:-LOVKESH THAKUR SUSHANT NAUTIYAL HARSHITA JOSHI DIMPY JAIN MANUBIR SINGH

TEAM DETAILS

Lack of access to social protection for informal sector workers

Millions of workers have never had or are losing access to their rights to social

benefits through work – retirement funds, maternity benefits and reproductive

health services, compensation for work-related accidents and monetary

matters. Millions more will never gain the kind of jobs that carry such benefits.

Basic problems to be solved for informal sector

workers

A. Adverse work

conditions. • Conditions of work

are hazardous and

precarious, with

little regulation of

the working

environment, and

very little social

protection.

Providing financial support, educational infrastructure

and healthcare facility through network of volunteers

Financial upliftment

• Among the informal sector poverty passes cross-generation due to lack of schemes providing loans hence we create an organization which would provide loans to the informal sector worker.

• New schemes would start under this organization like IPF(Informal Sector provident Fund) and would also take care about the monetary help for retired and unemployed class.

Education • Due to the lack of knowledge about their political rights the informal sector

is exploited hence an organization at district level is established to educate the informal sector worker about their rights.

• Due to lack of infrastructure and awareness the basic knowledge can not be imparted to the younger generation

Healthcare • Most of the times the informal sector are involved in kind of work where

the work conditions are hazardous and hence this sector needs proper medical attention

• Health facilities if provided on low cost can be made available to larger no. of workers as well as there family members.

Monetary Assistance To The Informal Sector

• All though the sector provides nearly 400

million workers it provides low wages. More

over these units are not covered under any

labour laws, employees do not have facilities

like PF and ESI.

• In addition to the above mentioned problems

a large sum of the monetary help that is

allotted by the government for workers is

consumed by the meditators and therefore

the purpose is not fulfilled

Our Suggestion to provision of proper and sufficient

wage to the informal sector

• Building and strengthening organizations of small producers and micro-

entrepreneurs

• Regular surveys should be done to check whether proper wages are

provided to informal sector workers according to their work

• Removing gender biasing in providing wages

Implementation to the proposed solution

Establishing a Panel at district

level which can keep a record

of workers’ wages

A complete record of

workers and wages

provided to them.

These record used to

as a proof shown to

panels.

As a tool to identify

the working sites

that need

improvement

Advantages of the proposed plan A. Survey results should be used as a basis for the design and implementation of

necessary steps to be taken: • suffering workers can be identified and special measures can be taken

• facilities like PF and ESI which are available to workers of the organized

sector be provided.

B. Criterion of minimum wages for each sector according to the labour done: • Minimum wages according to labour done be predefined

C. Giving a notice before they are fired from their job • This will help them to find another work beforehand

Loan ,Insurance And Pension Policies For The Informal Sector

Workers

• Due to the lack of loans and financial possessions the worker under the BPL

line in informal sector aren't able t come up with their ideas of starting a small

scale business, provide basic education to their children, secure their basic

amenities or ensure proper healthcare.

• Due to no existing pension scheme for this sector the elderly age group are

forced into no work no money trap situation hence the need of such schemes

are must.

Our Solution to provide loans, insurance and pension

scheme to the informal sector

• Existing NGOs as well as new NGO particularly working for this cause should

be promoted by the government to reach out to more and more workers

• Private Firms should be invited by the govt. to invest on small scale

business.

• An organization would be started at the central level with branches following

to the districts which would regulate the flow of money and funds collected

from various sources to the informal sector and monitor proper working of the

plan.

Implementation to the proposed solution

Parent Organization at central level

Multiple state organization reporting directly to the central

organization

Multiple regional or district organization reporting directly to state organization

• The organization would make a scheme IPF(Informal sector provident fund)

according to which 5% of the monthly wage would be deducted from their salary

and interest would be added to it at the rate of 2%. The total sum will be

provided at the end of each fiscal year.

• A scheme would be started under the supervision of the regional organization to

provide 25 rupees of pension everyday on the monthly basis. The individual

should be allowed to work till the age limit of 65 if willing with only provision of

either working income or the pension.

• The organization would provide loans to the population below BPL at 2% ROI

up to 2 lakh rupees for starting a small scale business. For amount exceeding 2

lakh rupees the ROI would be at par with the formal and organized sector.

• Private sector firms would be lured into insuring the work force of informal

sector, by their publicity through media and boards, respective to their

participation.

Information about working of the organization

Provision of proper education among the informal sector

The informal sector of the country constitutes nearly 50% towards the total

GDP of the country hence it is very important for the upliftment of the sector

also for the development of the country that the informal sector workforce are

provided with proper basic education. Also due to the lack of knowledge about

their political rights the workers in this sector are usually exploited.

Our response to tackle the issue of lack of education among

informal sector

• Various existing NGOs working for the cause would be given higher funding to

ensure proper implementation of the existing schemes.

• It would be made mandatory for all industry related to the field of education

and with a profit of 15% and above to invest 2% of their profit income into

improving the educational facilities for the informal sector. For e.g. the scheme

started by ITC of funding 1 rupee for every 4 purchase of their product into

imparting knowledge to the poor section of the society.

• A camp would be organized on monthly basis where law practioner from the

regional law schools would impart them knowledge about labour laws and

their political rights. This would happen under the supervision of the district

magistrate (law authorities) hence ensuring proper implementation of the

scheme

Providing Healthcare To The Informal Sector Community

• As the informal sector physically constitutes nearly 83.7%(450 million) of the

total workforce, the healthcare of this sector is very important. The working

condition of the informal sector worker is hazardous, their wage is very low

and the absence of low cost medical healthcare facility within the

neighborhood prevents them from availing proper health and medical care.

Our Suggestion for provision of proper healthcare and

medical facility within the reach of the informal sector

• We can make it mandatory for doctors under training to work at least 2 years

in areas with high density of informal sector worker under the supervision of a

skilled and dedicated doctor.

• Free 3 days long monthly medical check-ups and medical camps would be

arranged by the governmental hospitals in such areas to ensure proper

healthcare.

• Generic medicines would be promoted amongst the worker class as they are

cheap. These would me made within the reach of the workers. A team of

young volunteers would be assigned the task weekly.

• The private hospitals with profits over 20% from the state would be made

mandatory to invest 3% in the informal class over the medicines and health

check-ups.

Implementation to the proposed solution

The organization would maintain the coalition of governmental and private medical firms in the upliftment of the informal sector

The organization would be responsible for the recruitment of the workforce to carry out the started programs

The organization would execute as well as monitor the smooth working of the initiated programs. It would also study latest technological changes in the field of medicines to ensure cheap facilities.

Organization

related to

health affairs

at state level

Under the supervision of this state level organization the various program started

will be coordinated. The organization will be the governing body in the any matter

of dispute among the governmental and non-governmental bodies.it will decide

the participation and role of the bodies in various programs and its proper

implementation

Hierarchy of the various organization thus created in

the proposed solution

Provision of the work force for the created organization

and implementation of scheme

Organization at central, state or regional level

Hiring or recruitment department

Finance

department

Coordinating department

Research

department

Human resource

department

The working committee will be filtered from three different communities of the

society

• The skilled workers in the field of medicines, law and education would be hired

• These can act as supervisor and can also impart knowledge about respective field to the unskilled labour

Skilled or Professional

• These are easy to approach and recruit directly from colleges and educational institutions

• The scheme would provide them with training, experience and first hand experience

Student or young volunteers

• These have long work experience and have lots of ample time to invest into the schemes

• The scheme would give them an opportunity to work and earn through voluntary activities Retired

Provision of funds for the solution thus proposed and

the body constructed

Total funds collected

Working class

Private

firms

Government

bodies

Working class • 5% of the salary of workers in

the informal sector and 3% of

the salary of the workers in

formal sector would be deducted

and would be invested into the

field of rapidly growing business

to ensure higher returns. The

profit thus obtained would be

used as funds for the scheme Private class

• The private firms with a profit of (15% for education related firms, 20% for

medicines related firm and 15% for all the others) would be made mandatory to

invest 2% of their profit into the upliftment cause of the informal sector work. The

organization thus made would monitor the profits and the smooth functioning of

the programs.

Government bodies The government would ensure that the income thus generated from the investment

of the money from working class follows an exponential growth. The government

bodies would also provide fund raised through publicity to the self-help group and

the various existing and upcoming NGOs working on this cause

APPENDIX

REFERENCES

• Social security for unorganized sector workers in India: alternative

approaches and new initiatives survey by V.V.GIRI NATIONAL LABOUR

INSTITUTE, INDIA

• Social protection program under National Academy for Training and

Research in Social Security

• World Bank Publications : India Issues

• The Exceptional Persistence of India's Unorganized Sector

• ADBI institute research on reconstruction of the service sector of india

• Research papers by international labour office for employment and social

protection for the informal sector of India

• ILO Asia-pacific working paper series for youth employment and

unemployment: an Indian perspective