Social Security in India, Status, Schemes & Challenges, Measures

Social Security in India refers to government measures that protect people from financial difficulties like illness, unemployment, or old age. It ensures a basic standard of living for all citizens. These include schemes related to healthcare, pensions, and welfare support. Overall, it promotes social justice and reduces inequality.

Social Security in India Status

• India’s social protection coverage increased from 24.4% in 2021 to 48.8% in 2024, as per the International Labour Organization report.
• Around 920 million people (about 65% of the population) are covered by at least one form of social protection through central schemes.
• India’s progress contributed to a 5 percentage point rise in global social protection coverage.
• The expansion is driven by major government initiatives providing healthcare, pensions, employment support, and food security.
• Key schemes include:
  • Ayushman Bharat (PM-JAY): ~39.94 crore cards issued; ₹5 lakh health cover per family.
  • PMGKAY: ~80.67 crore people receiving free food grains.
  • eShram Portal: ~30.68 crore unorganised workers registered (53.68% women).
  • Atal Pension Yojana (APY): ~7.25 crore subscribers.
• Social Security measures helped 24.8 crore people escape multidimensional poverty in the last decade.
• The report notes that actual coverage may be higher, as some benefits (like food and housing) and state schemes are not fully included.
• India has launched a Social Protection Data Pooling Exercise (2025) to improve accurate assessment of coverage.
• Over 200 crore records across 34 schemes have been integrated using Aadhaar-based identification.
• The report highlights India’s growing role in strengthening global welfare systems and inclusive development.

Schemes to Promote Social Security in India

• Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM)
  • Pradhan Mantri Shram Yogi Maandhan Yojana is a pension scheme for workers in the unorganised sector like street vendors, labourers, and small workers.
  • People aged 18-40 years earning less than ₹15,000 per month can join.
  • They contribute a small amount every month (₹55-₹200), and the government contributes an equal amount.
  • After the age of 60 years, the person gets a fixed pension of ₹3000 per month.
  • If the person dies, the spouse gets 50% of the pension.
  • If both husband and wife join, they can get ₹6000 per month together.
• National Pension Scheme for Traders & Self-Employed (NPS-Traders)
  • This scheme is for small shopkeepers, traders, and self-employed people.
  • Entry age is 18-40 years with annual turnover up to ₹1.5 crore.
  • Monthly contribution is shared equally between the person and the government.
  • After 60 years, the beneficiary gets a monthly pension of ₹3000.
• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
  • Pradhan Mantri Jeevan Jyoti Bima Yojana provides life insurance coverage.
  • Available to people aged 18-50 years with a bank account.
  • Very low premium of about ₹436 per year.
  • Provides ₹2 lakh to the family in case of death (any reason).
• Pradhan Mantri Suraksha Bima Yojana (PMSBY)
  • Pradhan Mantri Suraksha Bima Yojana offers accident insurance.
  • Available for people aged 18-70 years.
  • Premium is very low (around ₹20 per year).
  • Provides ₹2 lakh for accidental death or full disability and ₹1 lakh for partial disability.
• Atal Pension Yojana (APY)
  • Atal Pension Yojana is a pension scheme for long-term financial security.
  • Open to people aged 18-40 years with a bank account.
  • After 60 years, a person can receive a monthly pension between ₹1000 and ₹5000.
  • After death, the pension amount goes to the spouse or nominee.
• Public Distribution System (PDS)
  • Public Distribution System provides subsidised food grains to poor families.
  • Families below the poverty line get 35 kg of food grains per month.
  • It also supports migrant workers through One Nation One Ration Card (ONORC) so they can get food anywhere in India.
• Pradhan Mantri Awas Yojana – Gramin (PMAY-G)
  • Pradhan Mantri Awas Yojana Gramin helps poor families build houses.
  • Focuses on families without proper housing or stable income.
  • Provides ₹1.2 lakh in plain areas and ₹1.3 lakh in hilly areas for building homes.
• National Social Assistance Programme (NSAP)
  • National Social Assistance Programme supports elderly, widows, and poor people.
  • Provides monthly pensions for people with little or no income.
  • Central government gives ₹300-₹500, and states may add more (total around ₹1000–₹3000).
• Ayushman Bharat – PM Jan Arogya Yojana (AB-PMJAY)
  • Ayushman Bharat Pradhan Mantri Jan Arogya Yojana provides free health insurance to poor families.
  • Covers ₹5 lakh per family per year for hospital treatment.
  • Focuses on vulnerable groups like SC/ST families and poor households.
• Pradhan Mantri Kisan Maandhan Yojana
  • A pension scheme for small and marginal farmers.
  • Entry age: 18-40 years, with land up to 2 hectares.
  • Provides ₹3000 monthly pension after 60 years.
  • Contribution is shared equally by farmers and the government.
• Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS)
  • Helps manual scavengers shift to safer and better jobs.
  • Provides ₹40,000 one-time financial assistance.
  • Offers free skill training with a monthly stipend of ₹3000.
  • Aims to ensure dignity and sustainable livelihood.

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Code on Social Security, 2020

• The Code on Social Security, 2020 brings together 9 different labour laws into one, making the system simpler and easier to understand and follow. It aims to give Social Security to all workers, including organised, unorganised, gig, and platform workers.
• For the first time, gig and platform workers (like delivery agents and app-based workers) are officially recognised. A Social Security Fund is created to support them with benefits like insurance, healthcare, and pensions, with help from the government and other sources.
• The law expands coverage of Provident Fund (EPF) and ESIC so that more workers and workplaces are included. Now, establishments with 20 or more workers must provide EPF, and ESIC is extended across the country, even allowing small firms to join voluntarily.
• A national database and registration system will be created for unorganised workers. Each worker will get a unique ID linked with Aadhaar, making it easier to access benefits anywhere in India, especially for migrant workers.
• The definition of wages is standardised, which helps in increasing benefits like gratuity, pension, and leave salary. The definition of family is also expanded, so more dependents can receive benefits.
• Workers are now protected even during accidents while travelling to or from work, which are treated as work-related, allowing them or their families to receive compensation.
• Fixed-term (contract) employees get better protection, as they are now eligible for gratuity after just one year, and they receive benefits similar to permanent workers.
• The Code gives strong support to women, including 26 weeks of maternity leave, option for work from home, nursing breaks, and crèche facilities at workplaces. If such facilities are not provided, financial support must be given.
• It also makes processes easier for businesses by introducing digital systems, reducing paperwork, and allowing online records and filings. Inspections are now more transparent through an Inspector-cum-Facilitator system, which focuses on helping rather than punishing employers.
• Many minor offences are now treated with fines instead of imprisonment, and employers are given time to correct mistakes. This reduces legal pressure and promotes voluntary compliance.
• The Code also supports employment by setting up career centres to connect job seekers with employers and expanding benefits to workers who were earlier not covered, especially in the informal sector.

Social Security in India Challenges

• A key challenge is insufficient funding, as many Social Security schemes do not receive enough budget to meet the needs of poor and vulnerable people.
• Even when funds are available, poor utilisation and weak management lead to delays and unspent money, reducing the impact of these schemes.
• Corruption and leakages remain a concern, with benefits sometimes going to wrong or fake beneficiaries due to weak verification systems.
• Many schemes have limited coverage and low benefits, leaving out deserving people and providing very small financial support.
• The rise of digital systems has created a digital divide, as many people in rural areas lack access to the internet and technology.
• A large share of workers in India are in the informal sector, where they do not receive proper job security or social protection.
• There is also low awareness, complex procedures, and poor coordination between authorities, which make it difficult for people to access benefits.

Measures to Promote Social Security in India

• India should aim for universal Social Security, ensuring every worker gets basic protection like pension, insurance, and income support.
• Schemes like the Employees’ Provident Fund Organisation should be strengthened, with higher and regular contributions for better future security.
• Informal workers should be included by allowing small, flexible contributions, while the government supports those who cannot afford to pay.
• Expanding digital systems like the e-Shram Portal can improve delivery, but support must be given to people with limited digital access.
• Employers should be made responsible for providing Social Security benefits, which will also encourage formalisation of jobs.
• A single national labour card can help workers access benefits anywhere in India, especially migrants.
• The system should be simplified, better funded, and more transparent, with greater awareness so that workers can easily access the benefits meant for them.