Independent Research and Policy Advocacy

Designing a Universal and Comprehensive Social Security Floor for Informal Sector Workers

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Abstract

In this policy brief, we examine the provisions of the Code on Social Security Bill, 2019 insofar as they apply to workers in the informal sector. We note that there is a lack of clarity in the Bill on the definition of an informal sector worker. The Bill refers to those in establishments with fewer than ten workers as unorganised sector workers. It also contains a definition of “wage worker” and “platform worker.” Neither of these terms encompass the large numbers of workers – including those with regular wages – who lack the protection of any form of social security net. We also note that the Bill, as it stands, does not provide for any enforceable rights for those in the informal sector; rather, the Bill provides that welfare for the informal sector will be delivered by way of schemes framed by the State and Central government.

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