The Prime Minister’s Office (PMO) has given its approval to the labour ministry proposal on universal social security cover for 500 million workers before the all too important 2019 elections.
The finance and labour ministries will work out the details of the scheme that will require nearly Rs 2 lakh crore when fully rolled out for the lower 40% of the country’s total workforce. The remaining 60% of the workforce is expected to make contributions out of their own pocket, either fully or partially.
The idea of the scheme is pretty much self-explanatory; the labour ministry seeks the poorest in line to be aided by the scheme at the earliest and have requested the finance ministry for the same. An official went on to say that the scheme would take at least 5-10 year to come into effect in full force. The official said: “This would require a significantly less amount to start with and the fund allocation to the scheme can be enhanced later over the next 5-10 years to make it universal.”
This will be the second mass-benefit social scheme after the National Health Protection Scheme announced earlier that will provide Rs 5 lakh health cover to 100 million poor families.
The move comes a year before the general elections, indicating that the ruling government is working towards improving its dented image, especially in the farm and agriculture sector.
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