Bridging the Gap: A Policy Review of the Unorganised Workers Social Security Act, 2002

Abstract

The Government of India enacted the Unorganised Workers Social Security Act, 2002, to provide social security benefits to workers in the unorganised sector. Since more than 90% of India's working population works in the unorganised sector, lack of formal protection leaves them vulnerable to economic and social risks. The Act aims to provide basic benefits such as healthcare, old-age pension, life and disability cover and maternity benefits. Its execution, however, has been plagued with issues such as lack of awareness, administrative bottlenecks, intergovernmental lack of coordination and delays in registration of beneficiaries. This research paper critically analyses the effectiveness of the Act, bringing out key gaps in policy and implementation. Drawing on international experiences of Brazil's Bolsa Familia programme and South Africa’s social security initiatives for the informal sector, the study incorporates best practices into the Indian approach. The paper also recommends specific policy amendments to enhance implementation, expand access and offer better protection to unorganised workers to bridge the gap between practice and law.