The Hindu : Health scheme for unorganised sector approved

Online edition of India's National Newspaper
Thursday, Jan 08, 2004

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Health scheme for unorganised sector approved

By Our Staff Correspondent

NEW DELHI Jan. 7. The Union Cabinet today approved the Social Security Scheme for workers of the unorganised sector that will benefit 370 million workers.

The scheme, which provides for family pension, personal insurance to cover death or total disability for the workers and universal health insurance scheme for a worker and his family, is part of the ambitious Unorganised Sector Workers Bill.

The scheme, to be implemented by the Employees Provident Fund Organisation (EPFO), will be initiated in 50 districts as a pilot project — covering capitals of States and Union Territories — before it is approved as a Bill after two years. The implementation of the scheme will not entail an additional cess on petroleum as would have been necessitated had the scheme been passed in the form of a Bill.

Talking to reporters after the approval of the scheme, the Union Labour Minister, Sahib Singh Verma, said the unorganised sector workers had been given social security under the scheme as the passage of the Bill would have taken a lot of time since it had to be routed through the Standing Committee.

"Any practical problems faced during the implementation of the scheme will be incorporated in the draft Bill which will be tabled in Parliament after two years," he said, adding, the Bill had already taken a lot of time to reach the Cabinet stage and it was in the interest of the workers to avoid any further delay.

Keeping in its purview the workers not covered under the provisions of the Employees Provident Fund, the scheme provides a flat rate registered pension of Rs. 500 per month on retirement (60 years) or permanent and total disablement, to the widow on the death of the worker or to his orphans with the possibility of enhancing or reducing the amount depending on the contributions of the worker.

The scheme will cover all workers in the unorganised sector drawing wages not more than Rs. 6,500 per month and will be financed by the contributions from workers at the rates of Rs. 50 per month in the age group of 18-35 years and Rs. 100 per month in the age group of 36 - 50 years.

The contribution from the employers will be Rs. 100 per month in the first age-group and Rs. 200 per month in the second and the Government contribution will be at the rate of 1.16 per cent of the monthly wages of the worker or the national floor wage, which is presently Rs. 1,800 per month per worker.

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