Question : Workforce in Unorganised Sector

(a)whether the Government has defined the unorganised sector and if so, the details thereof;
(b)the total percentage of Indian workforce in the unorganised sector, State/ UT-wise, particularly in Odisha;
(c)the reasons that are identified by the Government for a large presence of the unorganised sector; and
(d)whether it is viable at present to transform the unorganised sector into an organised sector, if so, the manner in which it can be done and the steps taken/being taken by the Government in this regard?

Answer given by the minister

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

(a) to (d): A statement is laid on the Table of the House.

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STATEMENT IS REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO. 117 FOR 25.11.2019 BY SHRIMATI APARAJITA SARANGI REGARDING WORKFORCE IN UNORGANISED SECTOR.
(a) As per Section 1(l) of the Unorganised Workers’ Social Security Act, 2008, the unorganised sector has been defined as “an enterprise owned by individual or self employed workers and engaged in the production or sale of goods or providing service of any kind whatsoever, and where the enterprise employs workers, the number of such workers is less than ten”.
(b) The latest estimates of Worker in unorganised sector are not available from the Periodic Labour Force Survey (PLFS). However, from the Annual Report (July 2017-June 2018), on PLFS, estimates are given in Tables 1, 2 and 3 of Annexure-I. The explanatory Note and broad structure are given at Annexure-II.
(c) & (d) Employment generation coupled with improving employability is the priority concern of the Government. Government has taken various steps for generating employment in the country like encouraging private sector of economy, fast tracking various projects involving substantial investment and increasing public expenditure in various schemes.
Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) has been launched by the Ministry of Labour and Employment for incentivizing employers for promoting employment generation. Under this Scheme, Government is paying entire employer’s contribution (12% or as admissible) towards Employees’ Provident Fund and Employees’ Pension Scheme for all eligible new employees for all sectors for 3 years. This Scheme has a dual benefit, where, on the one hand, the employer is incentivized for increasing the employment base of workers in the establishment, and on the other hand, these workers will have access to social security benefits of the organised sector.
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The Scheme aims to cover a large number of informal workers to the formal workforce for availing the Social Security Benefits.
In order to provide social security benefits to the workers in the unorganised sector, including agricultural labourers, Government enacted the Unorganised Workers’ Social Security Act, 2008. This Act stipulates formulation of suitable welfare schemes for unorganised 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 Central Government. Life and disability cover is provided through Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) to the unorganised workers depending upon their eligibility. The health and maternity benefits are addressed through Ayushman Bharat scheme. For old age protection in the form of monthly pension, Ministry of Labour & Employment has launched Pradhan Mantri Shram Yogi Maan-Dhan Yojana which is a voluntary and contributory pension scheme for providing monthly minimum assured pension of Rs.3000/- on attaining the age of 60 years. The unorganised workers in the age group of 18-40 years whose monthly income is Rs.15000/- or less and not a member of EPFO/ESIC/NPS can join the scheme. Under the scheme, 50% monthly contribution is payable by the beneficiary and equal matching contribution is paid by the Central Government.


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