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  1. 1. (Protecting the Vulnerable: Providing social welfare to informal sector workers) Uplifting the informal sector
  2. 2. INTRODUCTION…… The First Indian National Commission on Labour (1966-69) defined „unorganized sector workforce‟ as – “those workers who have not been able to organize themselves in pursuit of their common interest dues to certain constraints like casual nature of employment, ignorance and illiteracy, small and scattered size of establishments”. Their employment relationship, in law or practice, is not subject to:  National labour legislation  Income taxation  Social protection or  Entitlement to certain employment benefits, e.g. paid annual leave, sick leave, etc More than 90% of India’s workforce belongs to the informal sector and accounts for 50% of the national product
  3. 3. PROBLEMS… 1 Has a high percentage of migrant and the sector is a prominent employer for child labour. Click to add Title3 Long working hours and lack of employment security. Click to add Title4 Small capital with business expenditures indistinguishable from household expenses. Click to add Title2 Generally a low wage and a low earning sector. 5 Organizations of people involved and level of management are of lower level. Click to add Title6 Some of the works are seasonal which implies no work for some part of year. Click to add Title7 Workers are unorganized into trade unions which adversely affect there bargaining power. Click to add Title8 Health hazards are exists in number of occupations.
  5. 5. Estimates of Employment in India Industrial Category No. of persons (in millions) Formal Sector Informal Sector Agriculture 1.39 238.87 Non-Agriculture 26.68 131.5 Mining & Quarrying 1.01 1.25 Manufacturing 6.71 37.07 Electricity, Gas And Water 1 0.04 Construction 1.17 16.36 Trade, Hotels And Restaurants 0.49 40.37 Transport, Storage & Comm. 3.15 11.48 Financial Services 1.65 3.29 Community Services 11.49 21.64 All Sectors 28.07 (93%) 370.37 Year: 1999/00 (Total labour force: 406 million) (GDP share: 63%)
  6. 6. PROPOSED SOLUTIONS… 1.Solution for hawkers Separate hawker’s market which would provide cleaner and organized space for commerce and also provide security for their shops. Government should build proper shops (on roadside) which would provide them with secured shops, which in turn would keep the city clean and help in land management.
  7. 7. …FEW MORE 2 . 3 . 4 Labour union should be elected among unorganized industrial labours to have direct contact with higher authority for betterment of labour grade Awareness programme • by school students in form of rally, nukkad natak and site visits •by government in form of various types of advertissement( eg:-tv ad,billboard) Launch of Karyodaya Jan Abhiyan.*
  8. 8. DISTRICT KARYODAYA JAN ABHIYAN.. *Central government should launch a scheme in the interest of the informal sector under which government can give contract to private company which would be in-charge of creating departments in every district for each state which would keep a record of all the informal workers in that area CENTRAL GOVERNMENT STATE PRIVATE COMPANY
  9. 9. …CONTINUED All the informal sector workers would have to fill up a form giving details about their family members and background, business and annual income along with their personal details .Each worker would be provided an *enrollment number which would:-  help their family to receive compensations( in case of medical emergency).  help them receive funds provided by the government.(as mentioned in the **Acts for informal sector).  help them get business loans at low interest rate. * and the registrations would be computerized **Indira Gandhi National Old Age Pension Scheme.
  10. 10. IMPACT OF THE SOLUTION SCALABILITY SUSTAINABILITY MEASUREMENT From the number of enrollment forms the government can know the actual number of informal sector population to be worked upon. During the initial implementation stages government can conduct survey on monthly basis and later on yearly basis to take the feedback from the population whether they are being benefited from the plan. Along with the survey government can ask private bodies to submit an report on yearly basis.
  11. 11. MERIT OF THE SOLUTION… Many efforts and legislations have been laid down by the government but unfortunately are very far from the reach of the informal sector:  The Unorganized Sector Social Security Act (2008)  National Policy on Street Vendors (2009) The reason mainly being corruption. Corruption would be minimized if government gives contract to private companies and people can get benefits directly.
  12. 12. CHALLENGES and SOLUTIONS.. CHALLENGES Legal:-People can show false data to take benefit of the scheme SOLUTIONS Submission of 1% of the annual income would be mandatory to get the benefits of the scheme(which could act as source of funding also) Promotion of scheme on a large scale Social :- Mass unawareness about the scheme
  13. 13. REFERENCES.. http://planningcommission.nic.in/reports/sereport/ser/restruc/stdy_rsturc_ch1.pdf http://mospi.nic.in/mospi_new/upload/asi/ASI_main.htm?status=1&menu_id=88 http://indiancag.org/manthan/social-welfare-to-informal-sector-workers http://www.wageindicator.org/main/documents/wwwmeetingjune06/informalindia http://www.ilo.org/dyn/infoecon/docs/441/F596332090/women%20and%20men%20s tat%20picture.pdf http://www.halfmantr.com/display-national-issues/1046-informal-sector-in-india http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-6454
  14. 14. REFERENCES…