portability of social security benefits: Labor benefits portability on cards, say officials- Ministry of Labor is developing a mechanism to allow portability of social security benefits when workers move from organized to unorganized sector.

portability of social security benefits: Labor benefits portability on cards, say officials- Ministry of Labor is developing a mechanism to allow portability of social security benefits when workers move from organized to unorganized sector.

Highlights

  • This move of the government will benefit 40 crore workers, including those moving from unorganized to organized sector jobs, from small to big establishments to those who are now self-employed.
  • Once this portability is implemented, employers will no longer need to register new employees who have previously been part of India’s workforce for social security benefits under their establishments.
  • The Aadhaar seeded and bank-linked Labor Citizenship Card with a Universal Account Number will enable mobility and portability within the system.

New Delhi
The Ministry of Labor is developing a mechanism to allow portability of social security benefits when workers move from organized to unorganized sector. A senior government official told ET that the ministry has discussed integrating Employees’ Provident Fund Organization (EPFO), Employees’ State Insurance Corporation (ESIC) and the recently launched e-shram portal for workers in the unorganized sector. has started. This is so that workers moving from unorganized to organized sector or moving from organized to unorganized sector continue to get social security benefits.

The official said, “There will be many informal or unorganized employees who at one point of time will be in the formal/organized sector and come under ESIC or EPFO, while there will be some employees who will move out of the formal sector and start their own enterprise. Hence there is a need for portability of benefits.”

See also  Icra may cut cess without affecting revenue due to high consumption of petrol and diesel

40 crore workers will benefit
This move of the government will benefit 40 crore workers, including those moving from unorganized to organized sector jobs, from small to big establishments to those who are now self-employed. Once this portability is implemented, employers will no longer need to register new employees who have previously been part of India’s workforce for social security benefits under their establishments.

The government is betting on Aadhaar linked Universal Account Number to integrate the social security system in various organizations and e-shram portal database. However, they have to ensure that the employee does not lose the accumulated benefits under the earlier system and the same is either transferred to the new system or distributed as and when it becomes due.

Also read: E-Shram Card: There is no income criterion for registration, but these workers will not get the benefit

What do experts say
Labor expert KR Shyam Sundar says, “Aadhaar seeded and bank-linked Labor Citizenship Card with a Universal Account Number will enable mobility and portability within the system. This will not only allow portability of social security benefits but also make available any kind of social assistance if needed in future.”

What is e-shram card, how is it beneficial for workers

#portability #social #security #benefits #Labor #benefits #portability #cards #officials #Ministry #Labor #developing #mechanism #portability #social #security #benefits #workers #move #organized #unorganized #sector

Leave a Comment

close
%d bloggers like this: