Social Security for unorganised individuals
A suggestion for the consideration/comments/suggestion of the fellow circle members.
My experience is confined to Mumbai where I live. Have the following suggestion.
There are countless daily rated workers, watchmen, and taxi/auto drivers who are not organised.
In our house we make wage payments to our household maids through bank account -- no cash payment.
SUGGESTION--
Amend the Payment of Wages Act and the Minimum Wages Act as under.
Every members of these persons will have a unique number (aadhaar or RBI allotted number) and would be seeded with their individual Bank A/c.
To the extent possible they would receive their payments through digital mode--where they receive cash payment, it should be credited into the Bank a/c.
In the case of digital deposit a somewhat higher interest can be considered. This would give a fillip to digital mode transaction.
A min of amount, say, Rs.100 or a % (10%) or any higher amount opted by these persons would go to a Social security scheme. To augment it State/Central Government can make a lump payment every calendar year. Social service donors may be encouraged to contribute and they should be given 100% (not 50% as at present) rebate in taxes.
On attaining the prescribed age, accident, disability, retirement, death, a decent monthly pension (say Rs.5000) to the individual/nominee and compensation should be offered.
(unemployed individual, housemakers should have the option to join this Scheme at their discretion)
LIC/ESIC can be administering authority. No need to create any additional body.
These are bare outline. State/Central governments would be the authority.
Incharge/Manager of the Local Circle may please call for the comments of the Local Circle members and finalised draft submitted to the Central Government urgently so that this is included in the ensuing Central Budget.
Please give it a top priority.
Lastly, I shall be grateful if Local Circle incharge sends me an ack on sviss38@gmail.com that the matter would receive the attention it deserves.
Vishwanathan, Mumbai
9987441760 more
My experience is confined to Mumbai where I live. Have the following suggestion.
There are countless daily rated workers, watchmen, and taxi/auto drivers who are not organised.
In our house we make wage payments to our household maids through bank account -- no cash payment.
SUGGESTION--
Amend the Payment of Wages Act and the Minimum Wages Act as under.
Every members of these persons will have a unique number (aadhaar or RBI allotted number) and would be seeded with their individual Bank A/c.
To the extent possible they would receive their payments through digital mode--where they receive cash payment, it should be credited into the Bank a/c.
In the case of digital deposit a somewhat higher interest can be considered. This would give a fillip to digital mode transaction.
A min of amount, say, Rs.100 or a % (10%) or any higher amount opted by these persons would go to a Social security scheme. To augment it State/Central Government can make a lump payment every calendar year. Social service donors may be encouraged to contribute and they should be given 100% (not 50% as at present) rebate in taxes.
On attaining the prescribed age, accident, disability, retirement, death, a decent monthly pension (say Rs.5000) to the individual/nominee and compensation should be offered.
(unemployed individual, housemakers should have the option to join this Scheme at their discretion)
LIC/ESIC can be administering authority. No need to create any additional body.
These are bare outline. State/Central governments would be the authority.
Incharge/Manager of the Local Circle may please call for the comments of the Local Circle members and finalised draft submitted to the Central Government urgently so that this is included in the ensuing Central Budget.
Please give it a top priority.
Lastly, I shall be grateful if Local Circle incharge sends me an ack on sviss38@gmail.com that the matter would receive the attention it deserves.
Vishwanathan, Mumbai
9987441760 more
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View all 6 comments Below 6 comments
A good suggestion with lot of practical difficulties. In the present circumstances, if implimented it may creat unemployment atleast for those who work part time in number of houses. Most of the house hold who employe parttime workers may not be able to pay prescribed amount and would therfore be reluctant to employe any one and use electric appliances to get their work done. Most of the household workers are not well educated and do not have resources/time to visit bank every now and then. In rural areas standared o education and employment is so poor that if prescribed pay is impliment for employment, those in the village would loose what ever employment they are getting. More over our work force is yet not efficient/skilled enough to justify the payment they would get. more
Dec 28
Sir, there are no details of total budgetary allocation and source of funding and priority of budget allocations to various heads. more
Dec 28
Though the suggestion is good there are attendant difficulties. Everyone who employ contract labors or house maids may not be wealthy or earning well above normal middle class standard. Even the organised sector employs people on contract basis. So it is suggested that the welfare scheme is recommended across the board and make everyone to be eligible for benefits. more
Dec 28
It is a good suggestion. But it is to be tested in some parts of the country. These persons can be registered with self help groups groups and monitered in few parts of the country. Then it can brought in other parts of country also more
Dec 28
In many places, it is they (the maids and other unorganised sector workers) who prefer cash to escape the scrutiny of digital payments into banks....they want to claim the benefits of social welfare programmes launched by the state and central governments for BPL families and below creamy layer segments of the reserved category population....this suits the rich and the powerful since they can get rid of their unaccounted cash that way... So, the present system is unlikely to change given the vested interests... more
Dec 28
