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Social Security for Domestic Workers in India, will it ultimately see the day light before general elections – a possibility!

The consulting industry in India is a rapidly growing sector, with a CAGR of 30%. The industry is worth up to $1.4 billion and is expected to reach $2.1 billion by 2025. The key players in the consulting industry in India include some of the multinationals, however, Karma Global has upped its ante with loads of consulting work carried out in the IT, financial and regulatory services sectors.

Karma Global a leading consulting firm, with operations in U.K, U.S. Canada, Middle East and South East Asia, specialises in areas like staffing, on-boarding, payroll, facility management, curbing regulatory risk, auditing and abiding by all labour law related compliance on PAN basis.

 

Social Security for Domestic Workers in India, will it ultimately see the day light before general elections – a possibility!  

Who are domestic workers?

As per ILO’s Intervention Model, Domestic workers are any persons engaged in domestic work – i.e., work performed in or for a household or households – on an occupational basis, within an employment relationship (C189, article 1).

 

Why extend social protection to migrant domestic workers?

Social security is a human right and the overarching principles of equality of treatment and non-discrimination calls on States to develop inclusive social protection laws and schemes (UDHR 1948, ICCPR 1966, ICESCR 1966).

 

Migrant domestic workers, like any other workers, can face social and economic risks throughout their life. 

Out of 168 countries, 60.7 per cent of these countries, provide social protection to domestic workers for at least one branch. Nevertheless, only 15 per cent of the 168 countries include domestic workers under all branches. By extending social protection coverage to migrant domestic workers and their families, governments not only mitigate poverty, inequality, vulnerability, and income insecurity across an individual’s life cycle; they also contribute to social cohesion, inclusive growth and sustainable development, as reflected in the 2030 Agenda for Sustainable Development.

 

Why the need for extending social security coverage to Indian domestic workers?

Domestic workers are amongst the most exploited classes of workers. Approximately, 4.75 million people in India are engaged as domestic workers. With a growing urban middle class, the demand for domestic workers is only increasing. One of the biggest challenges for domestic workers is the lack of economic security, which the nature of their employment subjects them to. In the event of any illness, injury, or economic needs of their family, they are left at the mercy of their employers, who offer them aid only as a favour.  Considering the number of workers who are engaged in domestic work and are currently excluded from such basic protection, the formulation of adequate schemes for bringing them within the fold of social security is a worthy goal.

 

Minimum wage, pension under consideration for domestic workers before general elections 2024!

Ahead of the upcoming general elections in April-May, the government is contemplating rolling out social security benefit to millions of domestic workers. This move signifies a potential step towards the realization of universal welfare payments as outlined in the Social Security Code of 2020, which is yet to be implemented.

Under consideration are various benefits such as minimum wage, pension, medical insurance, maternity benefits, and provident fund for domestic workers.

 A senior government official told ET that various options are being explored, but a final decision will be made once the Government has an accurate count of domestic workers in India

 

Proprietary blog of Karma Global

Collated and Compiled by the internal staff of Karma Global with the knowledge and expertise that they possess, besides adaptation, illustration, derivation, transformation, collection and auto generation for its monthly newsletter Issue 20 of February 2024 and in case of specific or general information or compliance updates for that matter, kindly reach out to the Marketing Team – kush@karmamgmt.com / yashika@karmamgmt.com

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