Concept Note
Assessing social protection provisions in States and Union Territories in India using a Social Protection Floor approach
1. Background
India, like other countries in South Asia, is home to a very large
population that needs protection against social risks. While many good
practices are in use, India is still facing the daunting challenge of
guaranteeing social protection and extending social security benefits to
all workers operating in the informal economy which account for around
94% of the total labour force. With a critical mass of vulnerable and
poor people dependent upon informal activities, there is an urgent need
for efficient protection mechanisms that can reduce their multiple
vulnerabilities in the context of economic shocks and stresses.
In recent years, it has been increasingly recognized that
vulnerability is not only a component of poverty, but also one of its
major causes. The absence of effective coping mechanisms to deal with
multiple shocks and risks may often result in pushing people farther
down the poverty trap. But the inability to deal successfully with risks
goes far beyond creating a state of deprivation for vulnerable
communities. It also has other negative effects in terms of human and
social capital, further restricting decent work opportunities and living
conditions, as well as the universal and sustained realization of other
economic and social rights.
In the context of the new global environment, it has become more
important than ever before to advocate for the establishment of national
social protection policies and systems, which are integral to social
and economic development processes, as well as to the achievement of
economic and social justice and universal human rights. For a country
like India, still trying to bridge a huge social protection gap, the
central policy challenge lies in the design of pluralistic economic and
social security systems which combine distinct protective mechanisms to
effectively ensure the universal provision of at least minimum levels of
protection for diverse social groups.
India, being a welfare State, has taken upon itself the
responsibilities of extending various benefits of social security to its
citizens. The social security legislations in India derive their
strength and spirit from the Directive Principles of the State Policy as
contained in the Constitution of India.
Although the Constitution of India is yet to recognize social
security as a fundamental right it does require that the State should
strive to promote the welfare of the people by securing and protecting,
as effectively as it may, a social order in which justice social,
economic and political shall inform all the institutions of national
life. Specially, Article 41 of the Constitution requires that the State
should within the limits of its economic capacity make effective
provision for securing the right to work, to education and to public
assistance in case of unemployment, old age, sickness and disablement.
Article 42 requires that the State should make provision for securing
just and humane conditions of work and for maternity relief. Article 43
requires that the State should secure by legislation or otherwise a
living wages and decent standard of life to all agricultural, industrial
and other workers. Article 47 requires that the State should raise the
level of nutrition and the standard of living of its people and
improvement of public health as among its primary duties. The
obligations cast on the State in the above Articles constitute Social
Security.
The Unorganized Workers Social Security Act, 2008 provides for
formulating welfare schemes on life and disability, health and maternity
and old age protection for all unorganized workers. The schemes
included under Schedule 1 of the Act are deemed to be the welfare
schemes under the Act. In addition various national legislation like
Mahatma Gandhi National Rural Employment Guarantee Act, 2005, provides
for income security besides labour legislation providing social security
provisions for both organized and unorganized workers.
Many states have set up social security schemes that go far beyond
what is offered by the Central Government and is mostly targeted at the
informal sector. However there is a wide variety in what is available in
different states. A comprehensive review of social security schemes
available to labour in India would be incomplete without a review of
both the Central and State Government Schemes.
2. Study rationale
The 101st Session of the International Labour Conference in June 2012
adopted Recommendation No. 202 concerning national floors of social
protection. The tripartite constituents thus affirmed that closing gaps
in coverage of basic social transfers and services is of highest
priority for equitable economic growth, social cohesion and Decent Work
for all women and men.
Social protection floors are nationally defined sets of basic social
security guarantees which secure protection aimed at preventing or
alleviating poverty, vulnerability and social exclusion. Such guarantees
may be achieved through contributory or non-contributory schemes,
whether means-tested or not.
The social protection floors should comprise at least the following basic social security guarantees:
(a) access to a nationally defined set of goods and services,
constituting essential health care, including in the case of maternity;
(b) basic income security for children, at least at a nationally defined
minimum level, providing access to nutrition, education, care and any
other necessary goods and services;
(c) basic income security, at least at a nationally defined minimum
level, for persons in active age who are unable to earn sufficient
income, including in case of sickness, unemployment, maternity and
disability; and
(d) basic income security, at least at a nationally defined minimum level, for persons in old age.
Subject to their existing international obligations, countries should
provide the basic social security guarantees referred to in the Social
Protection Floors Recommendation 2012 (No. 202) to at least all
residents and children, as defined in national laws and regulations.
The Social Protection Floors Recommendation, 2012 (No. 202) also
provides that member States should follow a two-dimensional strategy for
the extension of social security that:
(a) prioritizes the implementation of a national social protection floor (horizontal dimension; and
(b) seeks to provide higher levels of protection to as many people as possible and as soon as possible (vertical dimension).
The two dimensions of the extension of coverage are consistent with
moving towards compliance with the requirements of the Social Security
(Minimum Standards) Convention, 1952 (No. 102), and are of equal
importance and should be pursued simultaneously where possible.
In order to support the policy dialogue in India on the development
of a national strategy for the extension of social security along the
horizontal and vertical dimensions, it is important to review the
situation prevailing in India, i.e. in all States and Union Territories,
in this context. That is, which systems, mechanisms, schemes exist in
the area of social security covering the four basic social security
guarantees as detailed in the Social Protection Floors Recommendation
2012 mentioned above in the public and private sector, – whether they
are driven by public departments, insurance companies, service
providers, employers, or trade unions for example. It is equally
important to understand current trends, conditions, opportunities and
constraints in this context. Mapping these concerns will provide all
stakeholders with baseline information, and create a common reference
base on concepts and experiences, thus facilitating discussions aimed at
furthering policy development and advocacy on the national Social
Protection Floor. Assessing existing social protection provisions in all
States and Union Territories is of key importance in order to ascertain
coverage gaps and implementation issues all across India. This baseline
study will thus constitute the basis for further analysis geared at
further developing the design and implementation of efficient, effective
and sustainable social protection programmes aimed at establishing at
least a nationally determined social protection floor for all.
3. Growing international support for the Social Protection Floor
Over the past several years, the Social Protection Floor approach has
gained widespread acceptance, including both the Millennium Development
Goals (MDG) and G20 summits’ conclusions. The approach has been
accepted as a core social policy tool not only to respond to the
economic crisis and accelerate recovery, but also as a component of a
human-centred and inclusive development strategy.
A Social Protection Floor Advisory Group, chaired by UN
Under-Secretary-General and Executive Director of UN Women, Ms. Michelle
Bachelet, was convened in August 2010 by the ILO, with the
collaboration of the WHO, to enhance global advocacy and provide
guidance on the conceptual and policy aspects of the Social Protection
Floor. The Advisory Group’s report “Social Protection Floor for a Fair
and Inclusive Globalization” launched in New York in October 2011 shows
that the extension of social protection, drawing on Social Protection
Floors, can play a pivotal role in mitigating poverty and deprivation.
It can in addition help people adapt their skills to overcome the
constraints that block their full participation in a changing economic
and social environment, contributing to improved human capital
development and stimulating greater productive activity. The report also
shows how social protection has helped to stabilize aggregate demand in
times of crisis and to increase resilience against economic shocks,
contributing to accelerated recovery and more inclusive and sustainable
development paths.
In June 2011, the International Labour Conference concluded that in
view of the renewed support for the provision of minimum and basic
levels of social security through the establishment of Social Protection
Floors, there is a need for a Recommendation complementing the existing
standards. This Recommendation would instruct the provision of flexible
but meaningful guidance to member States in building Social Protection
Floors within comprehensive social security systems tailored to specific
national circumstances and levels of development.
The Government of India supported the concept of national Social
Protection Floors at the International Labour Conference in June 2011 in
Geneva and the G20 summit in September 2011 in France.
At the 101st session of the International Labour Conference adopted
on 14 June 2012 the Recommendation No. 202 concerning national floors
for social protection by an impressive tripartite consensus vote: 452
votes in favour, 0 against , 1 abstention.
4. Definitions of social security and social protection
The concepts of social security and social protection have evolved
over time, and are used in various ways throughout the world. Due to the
multiple forms that both concepts take nowadays, achieving definitional
clarity is a formidable challenge – particularly as neither term is
used consistently, differing widely across countries and international
organizations. In addition, new terms have been added to the classical
terminology, such as the Social Protection Floor. While it is not the
purpose of this section to put forward any universal definitions, it
aims to clarify and provide a better understanding of the relevant terms
and concepts as they will be used in the study.
The notion of social security adopted here covers all measures
providing benefits, whether in cash or in kind, to secure protection,
inter alia, from:
- lack of work-related income (or insufficient income) caused by sickness, disability, maternity, employment injury, unemployment, old age, or death of a family member;
- lack of access or unaffordable access to health care;
- insufficient family support, particularly for children and adult dependants;
- general poverty and social exclusion.
Social security schemes can be of a contributory (i.e. social insurance) or non-contributory nature.
Social protection is often interpreted as having a broader character
than social security (including, in particular, protection provided
between members of the family or members of a local community). It is
also used in some contexts with a narrower meaning than social security
(understood as comprising only measures addressed to the poorest, most
vulnerable or excluded members of society). Thus, unfortunately, in many
contexts the terms “social security” and “social protection” are used
interchangeably. In the study, pragmatically, the term “social
protection” will be used to mean protection provided by social security
systems in the case of social risks and needs.
5. Objectives of the study
The objective of the study will be to provide a comprehensive profile
and documentation of the situation on social security/social protection
both in the formal and informal economies in each State and Union
Territory of India, with a special emphasis on informal economy workers
and their families who represent the major segment of the workforce and
to point out the path forward towards Universal Social Security for the
work in India.
The study also will provide basic analytical insights into the
overall effectiveness of such schemes included in the comprehensive
profile by collecting data relating to the categories of social
protection, budgetary allocations, gender-wise number of beneficiaries,
the percentage of coverage of beneficiaries against the target
population. The study also will capture specific bottlenecks in
implementation of the schemes and suggest ways to rectify them.
More specifically, the study will report on:
- The policy, legal and regulatory context for social security and social protection in each State and Union Territory of India;
- The institutional arrangements for social security and social protection, both governmental and non-governmental;
- The social security and social protection schemes and mechanisms presently available to the population under the four basic guarantees indicated in the Social Protection Floors Recommendation 2012;
- The social security extension plans presently being considered under the various development programmes adopted at the level of States and Union Territories in India.
- Make recommendations regarding ways to move the country towards providing universal social security to workmen and their families.
6. Structure of the study
Chapter 1 will provide a definition of the concept of social security
and list its constituents. It will reflect upon the role of social
protection, including social security as a right in and of itself, and
its pivotal role in facilitating equitable economic development and
structural change, and mitigating shocks and crises. Based on recent
statistical evidence, Chapter 2 will summarize the state of social
security by providing an inventory of schemes and measures with regard
to each of the four generic elements (guarantees) of the Social
Protection Floor in each State and Union Territory and identify core
challenges for future policies geared at constructing a coherent
national Social Protection Floor.Chapter 3 will provide recommendations
on the way forward. Chapter 4 will provide the conclusions of the
study.
7. Methodology
The consultant will:
- Undertake a desk review of existing documentation on the subject in each State and Union Territory and provide a comprehensive bibliography;
- Meet with representative officials from government, insurance companies, to collect the relevant information and views on the subject;
- Consult with trade unions and employers organizations’ representatives to hear from their experience and perspectives;
- Apply any other means of action necessary to carry out his task.
8. Expected products
The consultant will provide a work plan and preliminary table of
contents of the report two weeks after the beginning of the study. These
will be reviewed and commented by the ILO Country Office and the Social
Security Specialist based in New Delhi and the Office of the Director
General Labour Welfare, Ministry of Labour and Employment. The following
products are expected before the end of the present assignment:
- A draft report
- A final report upon receipt of comments from ILO and the Ministry.
7. Target audience
The primary audience for this study are professionals and
practitioners working in the field of social security in India. The
study is also intended for persons who assist practitioners, such as
technical assistance providers and donors. By having a better
understanding of the situation associated with the provision of social
security on the basis of the Social Protection Floor concept, it is
hoped that these individuals and organizations can use their financial
and human resources more effectively to expand access to at least a
basic level of social protection. The most important audience for this
study, however, represent policymakers and regulators. By acquiring a
better understanding of the Social Security and its potential benefits
for India, regulators and policymakers have a significant role to play
in crafting regulations and building an enabling environment for
enhanced and better policy coherence and coordination among different
social policies. These efforts will be important in preventing
individuals and their families from falling into poverty and
deprivation, and in guaranteeing protections for those unable to earn a
decent income through employment, to empower workers to seize economic
opportunities and work their way out of poverty.
Timeframe : 3-4 months
To Apply:
The proposals (both technical and commercial) should reach to ravi@ilo.org by 5 August 2015.
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