Social Security Expansion Plan: Govt Eyes Insurance Cover for 32 Crore Unorganised and Gig Workers

The Union Labour and Employment Ministry is working on an ambitious plan to expand social security coverage to at least 32 crore unorganised, gig, and platform workers, in line with the four labour codes nearing implementation. The move aims to bridge a major gap in India’s welfare system by extending insurance benefits to workers outside the formal sector.

The Employees’ State Insurance Corporation (ESIC) is currently evaluating various domestic and global models to design a suitable framework for this large-scale rollout.

Hybrid Model Under Consideration

Officials indicate that the government is exploring a voluntary contribution plus subsidy model. Under this approach:

• Workers would contribute a small premium
• The government would provide financial support

This hybrid system is seen as a practical solution given limited public resources. A larger participation base is also expected to reduce premium costs, making the scheme more affordable.

However, policymakers acknowledge that a fully tax-funded model may not be viable, making shared contributions essential for sustainability.

Existing Schemes and Coverage Gaps

India already has multiple welfare schemes such as:

• PMSBY (₹2 lakh accident cover)
• PMJJBY (₹2 lakh life insurance)
• Ayushman Bharat (PM-JAY) for health
• Shram Yogi Maandhan for pensions

Despite these, coverage remains fragmented, with no universal insurance system for unorganised and gig workers.

The Social Security Code, 2020 mandates benefits including life insurance, health cover, maternity benefits, and old-age protection, but implementation is still underway.

Conclusion

The proposed expansion of social security marks a significant step toward inclusive growth. If implemented effectively, it could provide a much-needed safety net for millions of vulnerable workers. However, execution and funding will be crucial in determining whether the plan achieves its intended impact.

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