Saturday, August 20 2005 15:55 Hrs (IST) - World Time -

New Delhi: The Government is likely to scrap the bill for workers in the unorganized sector drafted by the previous National Democratic Alliance (NDA) Government, as it feels adequate attention had not been paid to the social security aspect, and plans to replace it with two bills.

The Unorganized Sector Workers' Bill, which was drafted by the NDA was referred to the National Commission for Enterprises in the Unorganized Sector, which concluded that a single bill may not be the best way to address the problems of workers in that sector.

"We have instead suggested two bills Unorganized Sector Workers Social Security Bill and Unorganized Sector Workers (Conditions of Work and Livelihood Promotion) Bill for the sector," acting Chairman of the Commission Jaishankar said.

He said the major problem with the earlier Bill was that it transposed the conditions of organized sector to the unorganized sector and did not deal with the social security aspect in an exhaustive way.

Aware of the fact that the social security aspect in the previous bill was not dealt with properly, the National Advisory Council headed by United Progressive Alliance (UPA) Chairperson Sonia Gandhi had drafted an Unorganized Sector Workers' Social Security Bill.

This Bill was also referred to the commission by the Prime Minster's office.

The draft of the Unorganized Sector Workers Social Security Bill prepared by the Commission envisages covering all workers in that sector, who earn up to Rs 5,000 a month.

The social security cover would be extended to self-employed workers (including small and medium farmers), wageworkers and home-based workers.

The Bill envisages a minimum social security

The Bill envisages a minimum social security cover comprising health insurance, life insurance, old age pension and maternity benefits for those covered under the Bill.

The workers and their employers apart from the Government would have to contribute rupee one per day to be eligible for the cover.

Wherever the employer-employee relationship does not exist the Center and State Governments will pay employer's share in the ratio of 3:1.

Even the contribution of the government will be divided between the Center and state governments in the ratio of 3:1.

For the workers belonging to households classified as below the poverty line, the contribution will be made by the Central Government.

When all the 30 crore workers in the unorganized sector would be covered the state and central government would have to contribute Rs 22,558 crore with the share of the states coming to Rs 5,010 crore and of the center to Rs 17,584 crore.

"Taking in to account the administrative expenses as well as expenses for capacity building and related activities the upper boundary of the public outlay on the scheme will not exceed one per cent of GDP," K P Kannan member of the commission said.