Question : Employment in Informal Sector

(a) whether the Government has formulated any scheme to improve the quality of employment in the informal sector of the country and if so, the details thereof;

(b) the contribution of the informal sector in the employment generation in the country;

(c) the steps being taken by the Government to provide social security to the people working in the informal sector;

(d) whether the Government proposes to take any effective measure to ease the criteria for getting loan to encourage employment generation and to promote the informal sector; and

(e) if so, the details thereof?

Answer given by the minister

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI SANTOSH KUMAR GANGWAR)

(a) & (b): Estimates of employment and unemployment are obtained through labour force surveys conducted by National Sample Survey Office (NSSO), Ministry of Statistics and Programme Implementation. As per the NSSO survey results, the category-industry sector wise distribution of workers during 2011-12 is given below:
(Figures in %)
Worker Industry Sector
Unorganized Organised Total
Informal 82.6 9.8 92.4
Formal 0.4 7.2 7.6
Total 83.0 17.0 100.0

The Employment generation coupled with improving employability has been the priority concern of the Government. The Government has taken various steps in this direction like encouraging private sector of economy, fast tracking various projects involving substantial investment and increasing public expenditure on schemes like Prime Minister’s Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pt. Deen Dayal Upadhayaya Grameen Kaushalya Yojana (DDUGKY) and Deendyal Antodaya Yojana-National Urban Livelihood Mission (DAY-NULM).

A Scheme called “Pradhan Mantri Rojgar Protsahan Yojana” (PMRPY) has been launched by the Government in the year 2016-17 for incentivising industry for promoting employment generation. Under this scheme employers are provided an incentive to enhance employment where the Government is paying the employer’s contribution of 8.33% EPS made to new employees. In textiles (apparel and made-ups) sector, the Government is also paying the 3.67% EPF contribution of employers in addition to paying the 8.33% EPS contribution.

Ministry of Labour & Employment is implementing National Career Service Project (NCSP) for transforming the employment services in the country using technology to bring more employment opportunities to jobseekers.

(c) to (e): The Government has enacted Unorganised Workers Social Security Act, 2008 for the welfare of unorganized workers. The Act provides for formulation of suitable welfare schemes for unorganized workers on matters relating to: (i) life and disability cover, (ii) health and maternity benefits, (iii) old age protection and (iv) any other benefit as may be determined by the Government through the National Social Security Board. The Rashtriya Swasthya Bima Yojana (RSBY) implemented by Ministry of Health and Family Welfare is a health insurance scheme which provides health and maternity benefits to the unorganized workers, listed in the schedule I of the Unorganised Workers’ Social Security Act, 2008. This scheme covers BPL and 11 other defined categories namely Building & Other Construction Workers, licensed Railway porters, Street Vendors. Besides this, the scheme is also applicable to MGNREGA workers (who have worked for more than fifteen days during preceding financial year), Beedi workers, Domestic workers, Sanitation workers, Mine workers, Rickshaw pullers, Rag pickers and Auto/Taxi drivers. For insurance against death and disability, Department of Financial Services implements schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana(PMSBY). Ministry of Labour and Employment implements Aam Aadmi Bima Yojana(AABY) which covers death and disability along with a scholarship component for 2 children studying in class 9th to 12th standard.
MUDRA and START UPS schemes are initiated by the Government for facilitating self-employment. Loan under PradhanMantri Mudra Yojana (PMMY) Scheme have been extended by banks, Non-Banking Financial Companies and Micro Finance Institutions (MFIs) to small/micro business enterprises by providing loans upto 10 lakh for manufacturing, processing, trading, services and activities allied to agriculture for promotion of self-employment.
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