Social security authority proposed

  • The Labour Ministry has mooted the idea of forming a National Social Security Authority and a separate Social Security Department within the ministry to provide social security to the entire population

Composition

  • Chaired by Prime Minister
  • The authority may have all the ministers and secretaries of all ministries dealing with social security programmes along with state government officials as members.

Functions

  • Mainly to formulate the National Policy on Social Security
  • To co-ordinate the central and state level programmes
  • To ensure that the objectives of the policy are achieved within the time frame prescribed

Proposed Social Security Department

  • The proposed Social Security Department within the Labour Ministry will provide “policy inputs” and “secretarial services” to the body.

Four-tier social security system

  • It proposes a four-tier system to cover the entire population of the country, including both formal and informal sector workers, through a common Social Security Code
  1. First tier- include the “destitute and people below the poverty line,”
  2. Second tier – workers in the unorganised sector who may be covered under a subsidised scheme
  3. Third tier – workers who can, with the help of employer, can make contribution to the schemes.
  4. Fourth tier – people who “are comparatively affluent and can make their own provisions for meeting contingencies or risks as and when arise.”
  • The social assistance programmes for the first tier shall be based on tax revenue
  • The current social security programmes and schemes can be “strengthened” and universalised.