By Dr. Gyan Pathak
India’s workforce greatly suffered in 2023-24 due to Centre’s neglect, as it is reflected in the recently released annual report data of the Union Ministry of Labour and Employment. Under the Social Security Schemes and Projects for Workers, Union Budget has provided Rs 12434.82 crore, which was decreased to Rs 11714.99 crore in the revised estimate, but actual expenditure was only Rs 8333.34 crore upto December 31, 2023. This data does not support PM Modi’s claim of employment generation referring the RBI data which showed 46.6 per cent increase from 596.7 million to 643.3 million. Had it been true, the expenditure on social security and welfare schemes for workers must have registered a significant increase rather than a sharp reduction from the allocated budgetary provision.
The neglect of workforce by Modi government is most pronounced under the Pradhan Mantri Shram Yogi Mandhan Yojna. Under this scheme the budget has provided Rs 350 crore, which was reduced to Rs 205.21 crore in the revised estimate, however, actual expenditure by the end of 2023 was only Rs 46.34 crore.
Under the Labour Welfare Scheme the budget allocation was only Rs 75 crore, which was shown increased to Rs 102 crore, but actual expenditure was only Rs 20.25 crore, the annual report of the ministry shows.
The Centre spent nothing under National Pension Scheme for Traders and Self-Employed Persons under erstwhile Pradhan Mantri Karma Yogi Maan-Dhan Yojna, though it had provided Rs 3 crore in the budget and the revised estimate reduced it to Rs 0.10.crore Even under Employees’ Pension Scheme it spent only Rs 6875.25 crore as against budget allocation of Rs 9167 crore and revised estimate of Rs 9760 crore.
Even under Aatmanirbhar Bharat Rojgar Yojna, the total allocation was Rs 2272.82 crore, which reduced to Rs 1350 crore in revised estimate but total expenditure by the end of 2023 was Rs 1265 crore.
The National Data Base for Unorganised Workers seemed also suffered because the expenditure was only Rs 18.63 crore as against budget allocation of Rs 300 crore, and the revised estimate of Rs 102.96 crore.
Modi government had launched the National Career Services with great fanfare but there seems to be little progress in this regard if actual expenditure of only Rs26.36 crore is of any indication against the allocated and revised fund of Rs 52 crore.
Similar is the case with the expenditure of autonomous bodies under the ministry which spent only Rs 94.39 crore as against the budget provision of Rs 127 crore.
As for the wages, the annual report says that in a labour surplus country like India, it is difficult to have a uniform and comprehensive wage policy for all sectors of the economy. In this connection refers to the Code on Wages, 2019, which is yet to be implemented.
The report says that the social security schemes in India cover only a segment of the organized workforce. It admits that government has limited role. There are social security legislations but these provide for mandatory social security benefits either solely at the cost of the employers or on the basis of joint contribution of the employers and the employees. While protective entitlements accrue to the employees, the responsibilities for compliance largely rest with the employers.
The coverage under ESI Scheme as on March 31, 2023 was meagre. There were only 3.43 crore insured persons, and 13.31 crore beneficiaries. The performance of the scheme is also dismal. A sum of Rs. 5444.73 Crores is due as arrears as on 31.3.2023 on account of default / dues by the employers of covered factories / establishments. An amount of Rs.2819.67 Crore was found not immediately recoverable due to various reasons, such as factories having gone into liquidation, BIFR / NCLT cases, whereabouts of employers not known, disputes in courts, etc. The balance amounting to Rs. 2625.06 Crores, represents immediately recoverable arrears. The ESI Corporation has been taking necessary recovery action through recovery mechanism, legal and penal actions, and prosecution, under the provision of the Employee’s State insurance Act-1948 and under the Indian Penal Code for recovery of ESI dues from the defaulting employers.
As for EPF is concerned, total number of establishments covered are only 2,71,731, which is only a fraction of the total enterprises in the country. As of January 2024, there were 26 lakh registered companies in the country, and out of those 16 lakh were active. It should also be noted that under the present law many companies are not required to give social security coverage under this scheme. Total contributing members under the scheme was only 6.5 crore.
Moreover, under the minimum pension provision, the members of the EPF under EPS are still getting Rs 1000 per month minimum pension, which is ridiculous. Amount paid as per minimum pension upto December 2023 was only Rs 2450.38 crore, while as per original pension was given Rs 1471 crore. It means majority of retired workers out of 20.55 lakh got minimum pension. (IPA Service)
