Beyond Enrolment: Crafting a Universal Social Safety Net for India's Informal Workforce
The e-Shram portal has registered nearly 300 million unorganised workers, but the challenge now is to move from a digital identity to a system of portable, universal social security that protects them from life's biggest risks.
What is the scale of India's informal workforce and its vulnerabilities?
The informal sector is the bedrock of the Indian economy, but its participants face significant precarity. According to official data from the Periodic Labour Force Survey (PLFS), over 90% of India's working population, estimated at over 400 million people, is employed in the unorganised sector. These workers often lack formal job contracts, regular salaries, and access to social security benefits. Data from the e-Shram portal itself highlights this vulnerability: a vast majority of the nearly 300 million registered workers report a monthly income below ₹10,000 (Source: The Hindu, citing official data). This low and irregular income leaves no financial cushion. For these households, a single event—a medical emergency, a workplace accident, or unemployment—can trigger a spiral into debt, often forcing them to sell assets or withdraw children from school.
How has the government attempted to address this through digital registration?
The government's most significant recent intervention has been the creation of a unified digital identity for informal workers. The Ministry of Labour and Employment launched the e-Shram portal on August 26, 2021, to build a National Database of Unorganized Workers (NDUW). The portal registers workers using their Aadhaar number and captures details about their occupation, skills, and family. As of early 2024, it has registered over 295 million workers. The government's rationale is that this database serves as a foundation for targeted welfare delivery. By integrating this database with platforms like the National Career Service (NCS) portal and state welfare boards, the government aims to improve scheme delivery and employment opportunities. For instance, registered workers are automatically enrolled for a ₹2 lakh accidental insurance cover under the Pradhan Mantri Suraksha Bima Yojana (PMSBY), with the first year's premium paid by the Ministry.
What are the structural limitations of the current welfare model?
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