Social Security for Informal Workers in Uttar Pradesh

Aims and Objectives: The study aimed to understand the status of social security for non-farm informal workers in both rural and urban areas of Uttar Pradesh. It assessed the level of awareness and access to government social security and welfare schemes for informal workers, identified challenges, and examined the requirements of informal workers and enterprises to strengthen social security in the state.

Methodology: The study was based on a detailed sample survey of non-agricultural informal workers and enterprises across Uttar Pradesh. A representative sample was selected from four zones and eight districts using a scientific random sampling procedure. The multi-stage stratified sampling procedure covered 4,036 workers—1,308 from rural areas and 2,728 from urban areas. Additionally, 444 enterprises were surveyed across the selected villages and Census Enumeration Blocks (CEBs).

Key Findings:

• Well-Being and Living Conditions: Most informal workers belong to low-income households. Their main sources of income are self-employment in non-agriculture, regular salaries, and casual wage work in non-agriculture.
• Employment Characteristics: Workers were almost equally engaged in regular salaried jobs, casual labor, and self-employment, primarily in the sectors of trade, hotels and restaurants, construction, manufacturing, and public administration, health, and education.
• Working Conditions and Social Security Provisions: Working conditions and access to social security benefits varied by employment status and enterprise type. Most regular salaried workers did not have formal contracts, and 85.8% of casual wage workers were daily wagers.
• Social Security and Bargaining Power: Only 1.4% of regular workers received social security benefits, such as maternity/paternity benefits and provident fund contributions.
• Workplace Facilities: While safe drinking water was generally available, facilities such as toilets were lacking, and creches or baby care units were almost non-existent. A quarter of regular salaried workers reported occupational health risks.
• Working Conditions and Social Security in Enterprises: Most enterprises were proprietorships or partnerships (91.5%), with workers predominantly being male (87.2%). Casual workers made up the largest proportion of workers in these enterprises.
• Access to Government Welfare Schemes and Challenges: Workers showed relatively high awareness levels, with a higher proportion of enterprises benefiting from government schemes.

Policy Implications:

1. Gradual Formalisation of Informal Sector Enterprises: Encourage the formalization of informal enterprises to improve workers’ security and benefits.
2. Skill Training and Re-Skilling: Focus on providing proper skill training and re-skilling to workers to enhance their employability.
3. Local Employment Opportunities: Increase local employment opportunities to reduce migration and instability.
4. Stipends During Training: Provide stipends during training to compensate for wage/income loss, along with relocation assistance post-training.
5. Financial Assistance and Start-Up Kits: Offer financial support and start-up kits to workers beginning self-employment ventures.
6. Identity Documentation: Create a ‘Unique Digital Credit Card’ or ‘Identity Document/Card’ for unorganized sector workers to facilitate access to benefits.
7. Awareness and Sensitization: Generate awareness among informal sector workers about potential employment opportunities, with follow-up support for at least one year post-placement.
8. Decent Working Conditions: Ensure proper provisions and implementation of decent working conditions in the unorganized sector.
9. Legal Binding for Social Security: Address the lack of legal obligation for employers or the government to provide social security to unorganized sector workers.
10. Employment Stability Post-COVID-19: Recognize the high uncertainty in employment availability due to COVID-19, and prioritize policy attention to create durable employment opportunities.
11. Clarity on New Codes: Clarify the implementation of schemes for informal sector workers, including emerging categories like gig workers, under new labor codes.
12. Sustainable Livelihoods: Promote sustainable livelihoods through skill mapping and linking workers to MSMEs, which can provide sustained job creation, and through urban livelihood or employment schemes like MGNREGS in rural areas.