Question

16. Which of the following statements is/are correct regarding the proposed Universal Social Security Plan?
1. The plan has been proposed by Ministry of Social Justice.
2. The scheme has mandatory pension, insurance and maternity coverage.
3. The scheme is required because about 10% of Indian workforce is in the organized sector.
Select the correct answer using the code given below:

• A. Only 1 and 2
• B. Only 1 and 3
• C. Only 2 and 3
• D. All of the above

Answer 1

The correct option is C Only 2 and 3

Ministry of Labour has drafted an ambitious plan to provide universal social security coverage for the poorest fifth of the country as part of a bigger scheme that’s being planned for all individuals. This broader programme envisages three categories — the poorest 20%, who will get a government pay-out; those who subscribe on their own and formal sector workers who will need to set aside a fixed proportion of income toward the scheme. The scheme will have two tiers. The first of these comprises mandatory pension, insurance (both death and disability) and maternity coverage and the second, optional medical, sickness and unemployment coverage. The scheme is required because of the fact that though India's total workforce currently stands at 450 million, but only about 10% are in the organised sector and getting social security of some sort. Every year, more than 10 million people are added to the workforce but most don’t get even the minimum wage and lack any kind of social security coverage, being mostly in the unorganised sector.