Lok Sabha Question No. 2753 (UNSTARRED), answered on 2018-03-12
Subject: Employment in Informal Sector
Ministry: LABOUR AND EMPLOYMENT
Asked by: PANKAJ CHOWDHARY

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK  SABHA

UNSTARRED QUESTION NO. 2753 TO BE ANSWERED ON 12TH MARCH, 2018

## EMPLOYMENT IN INFORMAL SECTOR

2753.  SHRI PANKAJ CHAUDHARY:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a) whether  the  Government  has  formulated  any  scheme  to  improve  the  quality  of employment in the informal sector of the country and if so, the details thereof;
- (b) the contribution of the informal sector in the employment generation in the country;
- (c) the  steps  being  taken  by  the  Government  to  provide  social  security  to the  people working in the informal sector;
- (d) whether the Government proposes to take any effective measure to ease the criteria for  getting  loan  to  encourage  employment  generation  and  to  promote  the informal sector; and
- (e) if so, the details thereof?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)

(a) & (b): Estimates of employment and unemployment are obtained through labour force surveys conducted by National Sample Survey Office (NSSO), Ministry of Statistics and Programme  Implementation.  As  per  the  NSSO  survey  results,  the  category-industry sector wise distribution of workers during 2011-12 is given below:

(Figures in %)

| Worker   | Industry Sector   | Industry Sector   | Industry Sector   |
|----------|-------------------|-------------------|-------------------|
|          | Unorganized       | Organised         | Total             |
| Informal | 82.6              | 9.8               | 92.4              |
| Formal   | 0.4               | 7.2               | 7.6               |
| Total    | 83.0              | 17.0              | 100.0             |

The Employment generation coupled with improving employability has been the priority concern of the Government. The Government has taken various steps in this direction like  encouraging  private  sector  of  economy,  fast  tracking  various  projects  involving substantial  investment  and  increasing  public  expenditure  on  schemes  like  Prime Minister's Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural

Employment  Guarantee  Scheme  (MGNREGS),  Pt.  Deen  Dayal  Upadhayaya  Grameen Kaushalya Yojana (DDUGKY) and Deendyal Antodaya Yojana-National Urban Livelihood Mission (DAY-NULM). A Scheme called 'Pradhan Mantri Rojgar Protsahan Yojana' (PMRPY) has been launched by  the  Government  in  the  year  2016-17  for  incentivising  industry  for  promoting employment  generation.  Under  this  scheme  employers  are  provided  an  incentive  to enhance  employment  where  the  Government  is  paying  the  employer's  contribution  of 8.33%  EPS  made  to  new  employees.  In  textiles  (apparel  and  made-ups)  sector,  the Government  is    also  paying  the  3.67%  EPF  contribution  of  employers  in  addition  to paying the 8.33% EPS contribution. Ministry  of  Labour  &  Employment  is  implementing  National  Career  Service  Project (NCSP)  for  transforming  the  employment  services  in  the  country  using  technology  to bring more employment opportunities to jobseekers. (c) to (e): The Government has enacted Unorganised Workers Social Security Act, 2008 for  the  welfare  of  unorganized  workers.  The  Act  provides  for  formulation  of  suitable welfare  schemes for  unorganized  workers  on  matters  relating  to:  (i)  life  and  disability cover, (ii) health and maternity benefits, (iii) old age protection and (iv) any other benefit as may be determined by the  Government through the National Social Security Board. The  Rashtriya  Swasthya  Bima  Yojana  (RSBY)  implemented  by  Ministry  of  Health  and Family  Welfare  is  a  health  insurance  scheme  which  provides  health  and  maternity benefits to the unorganized workers, listed in the schedule I of the Unorganised Workers' Social  Security  Act,  2008.  This  scheme  covers  BPL  and  11  other  defined  categories namely  Building  &  Other  Construction Workers,  licensed Railway  porters, Street Vendors. Besides this, the  scheme is also applicable to  MGNREGA workers (who have worked  for  more  than  fifteen  days  during  preceding  financial  year),  Beedi  workers, Domestic workers, Sanitation workers, Mine workers, Rickshaw pullers, Rag pickers and Auto/Taxi  drivers.  For  insurance  against  death  and  disability,  Department  of  Financial Services  implements  schemes  such  as  Pradhan  Mantri  Jeevan  Jyoti  Bima  Yojana (PMJJBY)  and  Pradhan  Mantri  Suraksha  Bima  Yojana(PMSBY).  Ministry  of  Labour  and Employment  implements  Aam  Aadmi  Bima  Yojana(AABY)  which  covers  death  and disability along with a scholarship component for 2 children studying in class 9th to 12th standard. MUDRA and START UPS schemes are initiated by the Government for facilitating selfemployment.  Loan  under  PradhanMantri  Mudra  Yojana  (PMMY)  Scheme  have  been extended  by  banks,  Non-Banking  Financial  Companies  and  Micro  Finance  Institutions (MFIs) to small/micro business enterprises by providing loans upto 10 lakh for manufacturing,  processing,  trading,  services  and  activities  allied  to  agriculture  for promotion of self-employment.

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