ABSTRACT

The article at first gives a brief definition to what an organized sector is and who are those
who works under this sector. What areas of industries are covered by the unorganized sector
in India. It also most of all focuses on some schemes and projects that the government of
India be it central government or state government has introduced in the country for the
social security and protection of unorganized sector employees and employers as well.

The article covers some latest and some old schemes which has created some difference in
the situation of the unorganized sector. There have been many numbers of schemes brought
up the governments. It will show to what extent the government spends on this scheme from
the budget and how far has they reached to them. It will discuss the eligibility of those who
can enroll themselves for the scheme and how much benefitted they will be if they avail the
benefits as said under the several schemes by the government.1

1
https://blog.ipleaders.in/15-welfare-schemes-for-unorganized-sector-introduced-by-the-government-of-india/

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 INTRODUCTION

To find welfare schemes for unorganized sector in India we must know how an entity is
considered to be unorganized. Some of the features which characterizes an entity to be
unorganized are:

If it a small-scale entity and has a local ownership.

If it does not have any legal status.

If it is flexible in fixation of prices.

If it does not have proper packaging and production.

Its entry and exit from the market are easy.

Employees of unorganized sector have lower security in job, and they are more victimized by
their employers in context of unfair practices like termination of job, less wages, less no. of
holidays and more work and discrimination in workplace etc.2

2
https://blog.ipleaders.in/15-welfare-schemes-for-unorganized-sector-introduced-by-the-government-of-india/

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 SCHEMES

 The government has taken some steps to protect the employees working in unorganized
sector and help them by promoting them through some welfare schemes such as:
Starting with the latest schemes we will find these two-scheme bought by the government
of India:

1. National Pension Scheme For Traders And The Self-employed Persons

 This scheme was made under Unorganized Workers Social Security Act, 2008 section 3(1)
for Vyapari’s to protect them in their old age. This scheme’s objective is to provide social
security and old age protection to the shopkeepers/ traders/ self-employed people called the
vyapari’s between the age of 18-40 years who are not engaged in EPFO/ESIC/PM-SYM.
having annual turnover not more then 1.5 Crore in rupees. They are the shopkeepers or
owners who have petty or small shops, restaurants, hotels, real estate brokers etc.

2. Pradhan Mantri Shram Yogi Maan-dhan Yojana

 The scheme PM-SYM was made to protect unorganized workers who perform work like
street vendors, agriculture related work, construction site workers, workers in industries of
leather, handloom, mid-day meal, rickshaw or auto wheelers, rag picking, carpenters,
Hamals, fisherman’s etc. the scheme aimed to give them social security who are not engaged
in EPFO/ESIC and who does not qualify to be taxpayer between the age of 18-40 years.

3. Pradhan Mantri Rozgar Protsahan Yoajna

 This scheme was brought by the government to create employment for the unskilled or semi-
skilled workers by providing incentives to the employers. The government will fully
contribute to the employees’ provident scheme and the employees provident fund on behalf
of the employers, who have registered themselves in the employee’s provident fund
organization. To avail this, benefit the employees must have a UAN (Universal Account
Number).

 The government will contribute 12% in EPF for the employees for three years of their job
but conditional that they should be employed under the same employer for the complete three
years spam.

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 4. Aam Aadmi Bima Yoajna

 The scheme was brought by the GOI for the people whose family income falls below the
poverty line (BPL) or marginally above the BPL covered under vocational group and are
between the age of 18-59 years.

 This scheme acts as a social security scheme because it provides for insurance cover for the
people who are categorized under vocational groups or rural landless households such as
fisherman, rickshaw pullers, beedi workers, brick kiln workers, lady tailors, tannery workers,
papad workers, primary milk producers, tendu leaf collectors, forest workers etc.

 The people benefited with this scheme can claim for insurance from the nodal agency when
some mishap occurs like permanent total disability, or death due to accident, loss of one eye
and one limb due to accident.

5. Atal Beemit Vyakti Kalyan Yojana

 Under this scheme the government will provide monetary support to those who will get
unemployed. This will be available to those who have worked for at least 2 years preceding
the date of unemployment. Only those persons who were insured and have contributed for
minimum of 78 days during previous four contribution periods.

 ESI Act 1948, section 2(9), covers those employees who are eligible for this scheme.

 The relief can be claimed for a period of 90 days of unemployment only throughout the
lifetime.

6. Central Sector Scheme For Rehabilitation Of Bonded Labourer, 2016

 This scheme was first introduced in 1975 where it was the state government’s duty to
identify, rescue and rehabilitate the bonded labour and the central government would assist
them in financial terms on 50-50 basis. The scheme has been changed since then several
times and now in 2016.

 Now after the revised guidelines of the scheme the state government does not need to pay any
financial assistance to the rehabilitation of bonded labours instead the ministry of labour and
employment will provide the assistance for their rehabilitation of up to 4.5 lakhs for each
district. The amount they will receive will be deposited in the annuity scheme making them

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 the beneficiary for e.g. If it an adult male then 1 lakh, if it is some women, children, or
transgender then three-lakhs.

7. Gatidhara Scheme For Self-employment

 Gatidhara is a scheme launched the west Bengal government. This scheme was related to the
transport department for giving employment to the youth who has registered themselves as
unemployed. They would get employment in the transport sector of the west Bengal state.

 Eligibility: all those who age between 20-45 years will get employment under this scheme
having family income of less than 25,000 rupees per month. Only one member from each
household could apply for this.

 The beneficiaries would get a subsidy of up to 1,00,000 rupees and if female then 1.5 lakhs.

8. Grant In Aid Scheme To NGO’s For Welfare Of Women Labour

 This scheme was bought by the government to create awareness among women labourer’s as
we all know they are not much educated and aware about their rights so government planned
to provide them with knowledge of what they can have.

 The scheme was to give assistance in finance to the NGO’S or voluntary organization which
are formed for the welfare of the women, so government would provide the organizations
finance so that they can arrange campaigns and movements across different places and spread
the information related to different scheme and constitutional and other provisional rights
they have like remuneration, holidays, pay work and hours of working and minimum wages
etc.

9. Atal Pension Yojana

 This scheme aimed at providing social security to the employees of private sector or those
unorganized sectors who does not offer pension benefits to their employees on their
retirement. If someone want to vail themselves under this scheme, he/she should be an Indian
citizen and between the age of 18-40 years having bank account linked with Aadhar.

 The contributor can on his choice attain a pension of 1000-5000 rupees, or he can also get an
accumulated sum of the pension after his death. The accumulated amount will be given to the
spouse or if the spouse is dead as well then to the nominee. The contributor must have

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 contributed for t lest of 20 years of his employment. This scheme gives a sense of social
security to the person in case of accident, illness, or diseases etc.

10. Rashtriya Swasthya Bima Yojana

 This scheme is to provide socio-economic security to the BPL workers by providing them
with health insurances. A person who with a family of five members can enroll for this
scheme if he is categorized under BPL.

 The central government will contribute 75% of the amount and 25% will be contributed by
the state government. The beneficiaries only have to pay thirty rupees of registration (per
annum for all) as premium.

 The insurance sum will be of 30,000 rupees per annum for each family enrolled under the
scheme. Currently there are three crore persons enrolled to the scheme.

 The insured sum will cover expenses incurred in hospital, previous illness if any and any
common illness.

11. Revised Integrated Housing Scheme

 The scheme intends to help workers working in mines like iron, manganese, limestone, mica
etc. the workers for a minimum of one year period should be registered with labour welfare
organization. The applicant must not have any pucca house of his own or of his house or
anyone related to him in Indian territory. The applicant must not have availed benefit of any
other housing scheme previously. It is also required that the applicant must have land for
residential purpose either on owned or leased for 20 years which can be extended.

 The scheme requires many requirements from a minor worker like the land should be
minimum 60 square feet which is for the general category and that the house must be built
within 18 months but along with it there are also many benefits for the beneficiaries like they
will get a subsidy of 1,50,000 for building the house in three installments into the
beneficiary’s bank account. The deposit does not have to deposit any sum of money to
withdraw the subsidy form the bank account deposited by the government.

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 12. Garib Kalyan Rozgar Yojana

 The scheme was bought by the government of India to promote employment opportunities for
migrant workers, in June 2020 with a budget of 50,000 crore rupees. This scheme was bought
because of COVID-19 during which many workers were shifted from one place to another
having huge loses in their livelihood because of loss of employment during the lockdown
period.

 For this scheme 25 types of working areas were identified such as, PM Kusum Works, cattle
sheds, poultry shed, goat sheds, shyama prasad Mukherjee RURBAN mission, workers in
national highways, in construction of wells etc. which made the tally of migrated workers to
670,000.

 The scheme will give employment for one hundred and twenty-five days.

13. Mahatma Gandhi Bunkar Bima Yojana

 This scheme was introduced in 2005 for providing insurance benefits to the workers of
handloom industry, as we can see the scheme provides for insurance benefit to the handloom
industry workers if they happen any casualty which leads to death or disability partial or full.

 Applicants of this scheme should be engaged with state handloom development corporation,
ranging between age of 18 to 59 years. If there is a natural death, then a sum of 60,000 rupees
will be provided and 1,50,000 rupees in case of accidental death and full disability.

 An annual premium of rupees 330 will be given whose breakage will be as follows, 150
rupees by government of India, one hundred rupees by life insurance corporation of India the
best part is the weaver does not need to pay any amount for premium.

14. Deen Dayal Updhyaya Antyodaya Yojana (Day)

 Ajeevika scheme was replaced by DAY, the purpose of DAY is to skill people to train them
in rural and in urban areas as well. Its target was to train half a million people from urban
area and one million people from rural are by the end of 2016 and 2017, respectively.

 The scheme aims to create employment by providing training to people and make them self-
employed by enabling loans provisions so that they can set up small scale business or self-
help groups in urban areas.

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 Scheme established SVEP which start-up village entrepreneurship program which acts like
sub-scheme of this scheme. The scheme aims to enhance skills and self-business by financing
and supporting the poor.

15. Nirman Kamgar Awas Shayata Yojana

 Construction Workers mostly come from the poor or rural sections of the society. Therefore,
most of them do not have the convenience of their home. Nor do they have enough money to
build or buy their own house. Keeping this in mind, the Uttar Pradesh Building and Other
Construction Workers Welfare Board runs ‘Construction Worker’s Housing Assistance
Scheme’ for construction workers. Under this, workers are given financial assistance to build
or buy a house.

 This assistance amount to 1 lakh rupees. It is paid in two installments. Apart from building a
house, the UP government also aids the labourers for the repair of a house, which is
Rs.15,000. But the same beneficiary does not get both benefits simultaneously.

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 CONCLUSION

In conclusion, the PMEGP scheme is an essential initiative by the Indian government to

promote entrepreneurship and employment generation. The scheme provides financial
assistance and support to micro and small entrepreneurs in both urban and rural areas, thereby
contributing to broader social and economic goals.
The Unorganised Workers’ Social Security Act, enacted in 2008, provides for the formulation
of welfare schemes by the Centre and State for the benefit on unorganized sector workers.
The Act is provided with the purpose and object of providing social security and welfare of
the unorganized workers. The provisions of this Act were extended to the whole of Indian
territories.
The Act provides for the registration of workers and issuance of smart cards to the workers
with unique social security numbers in order to provide social security to workers in the
unorganised sector.
The Act casts a duty upon the Central government to formulate suitable welfare schemes for
unorganized workers on matters relating to (a) life and disability cover (b) health and
maternity benefits (c) old age protection (d) any other benefit which the Central government
may determine. There are 10 schemes formulated by the government under Schedule I to the
Act. The Act further states that State governments may formulate welfare schemes relating to
provident fund, employment injury benefit, housing, educational schemes for children, skill
up gradation of workers, funeral assistance and old age homes.
National and State Social Security Boards are mandated to be constituted under the Act to
perform the functions assigned to it under the Act.
The Act defines organized sector, unorganized sector, unorganized worker, and wage worker,
Self-employed worker and home-based worker thus covering a large area of paid workers in
the unorganized sector.
The “unorganized sector” is defined so that it includes enterprises owned by individuals or
self-employed workers and where the enterprise employs workers, the number of such
workers is less than ten.
The “unorganized worker” includes workers who are home-based, self-employed or wage-
workers including workers in the organized sector who cannot avail of the benefits of the six
social security legislations given in Schedule II of the Act. It is pertinent to mention that
unpaid workers are not covered by the Scheme of this Act.

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 BIBLIOGRAPHY

For successfully completing my project, I have taken help from following:

 BOOKS

 LABOUR LAW BOOK BY ICSI

 REFERENCES

 https://blog.ipleaders.in

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