Budget 2024: India Likely to Announce Social Security Fund for Informal Workers

Budget 2024: India Likely to Announce Social Security Fund for Informal Workers

• Karma
• February 09 17:14:05, 2024

Budget 2024: India Likely to Announce Social Security Fund for Informal Workers

  Contents News/Article Date: Updated 29th January 2024 Relating to which Act: The Employees Provident Funds & Miscellaneous Provisions Act, 1952;         Penalty under the Act: Whoever, for the purpose of avoiding any payment to be made by himself under this Act [the Scheme, the [Pension] Scheme] or the Insurance Scheme] or of enabling any other person to avoid such payment knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to one year, or with fine of five thousand rupees, or with both]. Applicable to which State: Whole of India Type: ET Bureau news report   Pertains to: Establishments and Employers covered by the Act Relevance of this news: Karma Global is in the business of HR Services, Payroll, Outsourcing and Regulatory Compliances right from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing, On-boarding, Employee Life Cycle, Statutory, Regulatory and Payroll compliances by providing customized solutions to all its elite clients. Now Karma Global is also fully into labour compliances for nearly 18 years and is helping both establishments and workers for fulfilment of obligations as per the laws of the land.  It has over 200 staff, both direct and indirect on its rolls and operates on pan India basis.  Recently, it has diversified into foreign shores as well, into countries like US, UK, UAE, Canada, Philippines, and Asia for handling payroll, outsourcing, recruitment and governance. And in the current instance: Union Budget 2024: India could announce a social security fund for the labour force in the unorganised sector as well as gif and platform workers in the interim budget to be presented by finance minister Nirmala Sitharaman on February 1. The fund proposed in the Social Security code 2020 would be a step toward universal social security for workers.  The code which is not yet rolled out because all the states have not framed rules, allows partial implementation of certain provisions. The government has already collated data of over 293.3 million unorganised workers through the e-Sham portal, launched in August 2021, which is verified and seeded with Aadhaar. This will allow the centre to roll out benefits to these workers quickly. Subject: Budget 2024: India Likely to Announce Social Security Fund for Informal Workers  

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Budget 2024: India Likely to Announce Social Security Fund for Informal Workers

Union Budget 2024: India could announce a social security fund for the labour force in the unorganised sector as well as gif and platform workers in the interim budget to be presented by finance minister Nirmala Sitharaman on February 1. The fund proposed in the Social Security code 2020 would be a step toward universal social security for workers.  The code which is not yet rolled out because all the states have not framed rules, allows partial implementation of certain provisions. The government has already collated data of over 293.3 million unorganised workers through the e-Shram portal, launched in August 2021, which is verified and seeded with Aadhaar. This will allow the centre to roll out benefits to these workers quickly. The broad plan is to subsume the existing social security schemes – old age, pension, provident fund, health, housing and education – under one umbrella and reroute the benefits through the social security fund, a senior government official told. This will mean there will be no additional fiscal burden on the government at the beginning, the official added.  However, all future social welfare schemes will be routed through the fund which will see additional allocation by the centre. The social security code provides for establishing and maintaining a separate account for financing benefits through the Social Security Fund. The new schemes could either be entirely funded by the centre, partly funded by the centre and the states or have contributions from employees as well as employers or partly funded by the aggregators, in the case of gig and platform workers as the case may be. Monetary penalties levied for violations of the code relating to the central government, corporate social responsibility (CSR) contributions, and the cess collected under the existing labour laws would also flow to the fund which would lessen the fiscal impact.