94% of India’s total labor force is in unorganized sector

New Delhi, 24 November, 2011

According to the survey conducted by National Sample Survey Organization (NSSO) in 2004-05, 43.3 crore workers were in unorganized sector which constituted about 94 per cent of the total labor force in the country. This was stated by the union labor and employment minister Mr. Mallikarjun Kharge in rajya sabha yesterday in reply to a question from Mr. Parimal Nathwani.

Apart from magnitude of the workers in the unorganized sector, Mr. Nathwani also wanted to know about measures taken to provide social security cover to the work-force in an unorganized or informal sector. The Minister in his reply stated that the government had enacted the Unorganized Workers’ Social Security Act 2008 which provided for constitution of National Social Security Board which in turn recommended social security schemes viz life and disability cover, health and maternity benefits, old age protection etc.

The minister further stated that as many as 2.51 crore BPL families of unorganized sector were covered under the Rashtriya Swasthya Bima Yojana as on 31st October 2011. The scheme was launched in October 2007. He also said that about 1.78 crore lives were covered in the ‘Aam Aadami Bima Yojana’ as on July 2011. This scheme of common man’s life insurance was launched on 2nd October 2007.

Mr. Kharge informed that the government had constituted Welfare Fund to provide welfare measures to the beedi workers and their family members. These included health care, housing assistance, children’s education and group insurance, etc.; the minister added.