Sri Ramchandra Khuntia, M.P. raised in the Rajya Sabha the
issue of unorgnaised workers, numbering about 370 million
and wanted to know from the Govt. whether it intend to introduce any social security net for their welfare.

Sri Ashok Pradhan, Minister of State for Labour, in his reply informed that according to the survey conducted by the National Sample Survey Organization (NSSO) in 1999-2000, there are about 369 million workers in the unorganized sector.

Sri Pradhan further said that a large number of workers in the unorganized sector are eligible to get social security benefits under the workmen’s compensation act, 1923, the maternity benefit act, 1961, the payment of Gratuity Act, 1972 and the Employees’ Provident Funds and the Miscellaneous Provision Act, 1952. The Government is implementing social security and welfare schemes for Beedi workers, cine workers and certain non-coal mine workers through welfare funds. The Government has launched the Krishi Shramik Samajik Suraksha Yojna – 2001 ‘ for providing some social security to the agricultural workers and is being implemented by Life Insurance Corporation of India ( LIC) in 50 identified districts in the country and envisages to cover 10 lakh agricultural workers during the first phase of three years. The LIC is also operating the Jan Shree Bima Yojna, a group insurance scheme for persons below and marginally above the poverty line. A National Social Assistance Programmed covering old-age pension, family and maternity benefits for selected groups is also in operation. Some of the State governments have also introduced social security schemes through welfare funds for the workers in the unorganised sector.

In regard to a question related to Employees Provident Fund Organization (EPFO) beneficiaries, the then Minister of State for Labour Sri Munnilal replied in Rajya Sabha that a modernization programmed namely “Reinventing Employees Provident Fund-India,” has been launched by the re-engineering of the existing work process, re-tooling of technology/computer enable system through networking of all offices of Employees Provident Fund Organization. It envisages providing all services to every member from any EPF location on subscriber to access his account balance and file his claim from any of the officers of the EPFO as against the present system which limits him to only one office where he is registered and to reduce the time between receipt of claim to issue of a cheque to 2-3 days as against the present stipulated time of 30 days. The first phase of the modernization programmed involving setting up of pilot centers in following six locations covering all four zones, is proposed to be made operational in a time span of 24 months.

West Zone                                  Indore & kota

East Zone                                       Patna

North Zone                                    Gurgaon

South Zone                               Hyderabad & Mangalore


After stabilization of six pilot centers the redesigned system is proposed to be replicated all over the country in a phased manner. Sri Ramchandra Khuntia also raised the issue of wage disparity in the rates of minimum wages in various regions of the country’s Sharad Yadav; the then Labour Minister laid a statement in the house on the issue of wage disparity. He said that there is disparity in rates of minimum wages in various regions of the country. The disparity is due to differences in socio-economic and agro-climatic conditions, cost of living, productivity etc. Under the Minimum Wages Act, both the Central and State Governments as the appropriate Government to fix revises and enforce minimum wages in scheduled employment under their respective jurisdictions.

With a view to reduce the disparities within the Region the Central Government have issued guidelines for setting up regional Minimum Wages Advisory Committees. In the absence of a uniform minimum wage in the country, the Central Government floated the concept of a national floor level minimum wage and fixed it at Rs. 35/- per day in 1996 based on the recommendations of the National Commission on Rural Labour (1991) and subsequent rise in the price level. The national floor level wage was last revised to Rs. 45/- per day with effect from 30.11.1999 to neutralize further rise in the Consumer Price Index. The States / UTs have been requested to ensure that the minimum wage in none of their scheduled employments is below the national floor level wage.