e-Shram to help settle workers’ accident claims

• The Union Labour and Employment Ministry is working on a mechanism to process accident insurance claims by unorganised workers registered on the e-Shram portal, which has seen over 27 crore registrations so far.
• The portal was launched six months ago with the aim of creating a national database of unorganised workers and to facilitate social security schemes for them.

Pradhan Mantri Suraksha Bima Yojana

• e-Shram portal is being discussed to be linked with the Pradhan Mantri Suraksha Bima Yojana, the Centre’s existing accident insurance scheme.
• The scheme would allow the workers to get the direct benefit transfer (DBT) through the e-Shram unique ID number. Unique IDs on the e-Shram portal carried the same series from the Employees Provident Fund Organisation’s universal account number (UAN).
• At the time the portal was launched in August 2021, the Ministry had estimated that there were 38 crore unorganised sector workers in the country.

About e-shram portal

• Launch:
  • The portal was launched on August 26, 2021.
• Aim:

• Ministry:
  • Ministry of Labour & Employment
• e-Shram Card:
  • Workers will be provided with an e-SHRAM card which will have a 12 digit unique number.
  • The details of workers will also be shared by the state government and departments.
• Single window:
  • This will be a single-point reference to help authorities reach out to and track workers in the informal sector, and offer welfare in times of crisis.
• Beneficiaries:
  • The database will include construction workers, migrant workers, gig and platform workers, street vendors, domestic workers, agriculture workers, migrant workers and similar other sub-groups of unorganised workers.
• Self enrolment:
  • It will be available in public for open access where workers can self-enrol through Aadhaar and mobile numbers.

Significance

Challenges

• Lack of Social security benefits:
  • Formal workers work in the public and private organised sectors and have adequate social security benefits.
  • But informal sector workers lack these benefits, making them very vulnerable to economic and political shocks.
• Susceptibility to economic shocks:
  • The casual workers among the informal workers are most susceptible to economic shocks as most of them do unskilled, low-paid occupational jobs.
  • A significantly high proportion of these workers belong to the marginalised groups and are migrant labourers.
  • The problems in the informal sector can be costly as it can lead to job and wage losses, higher inflation and even risk the livelihood of migrant workers.
• Structural disadvantage:
  • The structural disadvantage in terms of literacy and skills make them more prone to exploitation.
  • The discrimination in the urban informal labour market against these people leaves them with no choice but to accept the offered wage.
• Government failure:
  • There is a government failure to reduce wage inequality and ensure a bare minimum wage to a large chunk of the urban informal workers during normal times.
  • Therefore, the majority of urban informal workers remain highly vulnerable and live in precarious conditions even during normal times.
  • The existing government programmes cannot provide gainful employment opportunities to the migrants at their native places.
• Implications of Lockdown:
  • Informal sector workers suffered far more from the national lockdown in 2020 than their formal sector counterparts.
  • With an inadequate safety net, there were painful accounts of displaced informal workers trying to get back to their rural homes.

Exam Track

Prelims Takeaway

• State of unorganised sector in India
• E-shram portal
• Pradhan Mantri Suraksha Bima Yojana

Mains Track

Q. Although e-Shram is a important to provide the unorganised workers much-needed exposure, it is logged with impediments which can hinder the welfare measures. Analyse.