Enhancing Social Security for Unorganised Workers: Role of e-Shram

Syllabus: GS3/ Economy, Social Security

In Context

• The Ministry of Labour & Employment (MoL&E) recently claimed that, with over 300 million workers registered, the e-Shram portal is the largest database of unorganised workers in the world.

Background

• In view of the pathetic condition and exodus of migrant workers during the pandemic, the Supreme Court of India had directed the Union government to build a national database of workers. 
• Subsequently, the e-Shram Portal was started by the MoL&E in May 2021 with the objective of creating a national database of this labour force.
• The registration in the portal is fully Aadhaar verified and Aadhaar seeded. Any unorganised worker can register himself or herself on the portal on a self-declaration basis.
• It allows an unorganised worker to register himself or herself on the portal on self-declaration basis, under 400 occupations in 30 broad occupation sectors.

Current Challenges

• Eligibility Exclusion: Many migrant workers lack necessary documentation (e.g., Aadhaar, ration card).
  • Issues with mobile numbers not linked to Aadhaar, or absence of a permanent mobile number.
  • Inadequate documentation excludes these workers from e-Shram registration and associated benefits.
• Functionality of the e-Shram Portal: Operates primarily as a registration drive, with limited focus on ensuring access to social security benefits.
  • Many registered workers remain excluded from entitlements like ration cards and food security.
• Vulnerability of Migrant Workers: High mobility leads to disenfranchisement, stigma, trafficking, and poor access to public services.
  • Migrant workers, especially seasonal and circular migrants, are among the most vulnerable segments of the unorganised workforce.
• Gender Disparities: Despite a 53.59% female worker registration rate, structural inequalities persist.
  • Women workers face additional challenges, necessitating gender-sensitive approaches in social security schemes.
• Data Disaggregation: The need for detailed data disaggregation based on factors like gender, region, and migration patterns is not adequately addressed.

Significance of e-Shram Portal

• Social Security: To provide a platform for unorganized workers to access social security schemes like pensions, insurance, healthcare, and other welfare benefits.
• Data-Driven Interventions: The database will enable the government to understand the needs and challenges faced by unorganized workers, leading to more targeted and effective policies.
• Empowerment: By providing a unique identity and access to social security, the portal aims to empower unorganized workers and improve their quality of life.
• Disaster Relief: In times of crisis, the database can be used to quickly identify and provide assistance to affected workers.
• Policy Formulation: The data collected through the portal can be used to inform and refine labor policies, including minimum wages, working conditions, and occupational safety.

One-Stop Solution (OSS) Initiative

• The recently launched OSS aims to address these challenges by integrating welfare schemes like One Nation One Ration Card, MGNREGA, and PM Shram Yogi Maandhan into the e-Shram portal. 
• The initiative focuses on linking domains like pensions, insurance, housing, and skill development, creating a more comprehensive safety net for workers.

Recommendations

• Address Documentation Issues: Simplify registration procedures and provide assistance to workers who lack necessary documents.
• Prioritize Social Security: Shift focus from mere registration to ensuring access to social security benefits for all registered workers.
• Data Disaggregation: Collect and analyze data on migrant workers based on various factors to better understand their needs and tailor policies accordingly.
• Promote Portability of Benefits: Facilitate the transfer of social security benefits across states to ensure seamless access for inter-state migrants.
• Gender-Sensitive Approach: Implement gender-sensitive policies and programs to address the specific needs and challenges faced by women workers.
• Focus on Human Development: Shift focus from viewing migrants as a burden to recognizing them as assets and prioritizing their human development.

Conclusion

• The e-Shram portal has the potential to be a valuable tool for improving the lives of unorganized workers and migrants in India. 
• However, addressing the challenges and implementing the recommendations is crucial to ensure its success and achieve the goal of a more inclusive and equitable society.

Source: IE