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| Social security for Indian poor |
| The Indian government has announced an ambitious social security scheme which is aimed at benefiting about 390 million poor, non-unionised workers.
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| INDIA
, 25-May-2007
1:16:21 AM |
| Once passed by parliament, the scheme will provide the workers with life insurance and disability protection.
More than a third of India's population of one billion-plus people lives on less than $1 a day.
Last year, the government launched one of the country's most ambitious efforts to tackle rural poverty.
'Revolutionary step'
The draft Unorganised Sector Worker's Social Security Bill, 2007 was cleared at a cabinet meeting presided over by Prime Minister Manmohan Singh on Thursday.
Announcing the scheme, Parliamentary Affairs Minister Priya Ranjan Dasmunsi said it was a "revolutionary step".
He said the draft legislation would be put before parliament in August.
More than 90% of India's workforce is not represented by organised trade unions.
These workers earn their living as farm labourers, construction workers, brick kiln workers, and many are self-employed, with no access to social security benefits.
Under the new scheme, the non-unionised, casual worker will be entitled to life insurance and health and disability benefits by contributing just one rupee (one cent) a day.
The government and employers will also contribute an equal amount towards.
Those earning less than 6,500 rupees ($160) annually will be designated as living below the poverty line, and their one-rupee share will be paid for by the federal government.
It is estimated that the government will need $22.2bn to implement the scheme
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