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For workers in the unorganized sector, the main approach has been the setting up of sector-specific
welfare funds (usually tripartite in nature, with contributions from the government, employer and
worker). Such welfare funds include both contributory and tax-based schemes. Tax-based schemes
have been set up by the Government of India for workers including Beedi workers, mine workers,
workers associated with cinema and construction workers. Through the welfare fund, workers have
access to medical care, education for their children and other specified forms of social assistance.
Health insurance schemes such as the Rastriya Swasthya Bima Yojana (RSBY), Aam Admi Bima
Yojana (AABY) that provides for death and disability insurance cover to rural landless households and
welfare funds and schemes for various categories of unorganized workers extend the much-needed
social protection to them.
In order to ensure welfare of workers in the unorganized sector, the Unorganized Workers’ Social
Security Act has been enacted in 2008. This law provides the State the mandate to formulate schemes
to provide for life and disability cover, health and maternity benefits, old age protection and any other
benefit as may be determined.

Q5. Explain the features of Mahatma Gandhi national rural employment guarantee act,
2005(MNREGA).
Ans. Enactment of MGNREGA was a part of the commitments made by the United Progressive
Alliance (UPA) government in its Common Minimum Programme. The MGNREGA, with its rights-
based framework, is a significant policy response to a situation of poverty and inequality, by spelling
out citizens’ right and consequently, State’s obligation, to guarantee rural employment. It has been
hailed as a landmark legislation and promises to be a major tool in the struggle to secure social
protection. It is important to remember that NREGA was not given to the citizens on a platter by a
generous state; it was the Parliament’s response to a sustained people’s movement that grew out of the
recognition and articulation of the rights of the rural poor to a life with dignity through the right to
work. MGNREGA helps earn wages and create productive assets as well as regenerates natural
resources, thereby addressing causes of chronic poverty namely, water, fodder and land.
Distinctive Features: Here, we will discuss some distinctive features and strengths of the law.
Lessons from Past Experiences: MGNREGA is built upon the experience of previous public works
programmes such as the Maharashtra Employment Guarantee Scheme and consolidates other existing
employment generation schemes. Sudarshan (2009, pp.9-10) writes that the law has tried to
incorporate provisions to avoid lacunae in past laws / schemes / practices such as:
• the gap between commencing work and getting paid;
• non-availability of continuous employment;
• leakage due to underutilisation of the fund;
• no unemployment allowance or compensation for anyone involved in the scheme;
• low awareness of entitlements; and
• an absence of linkages between works and larger plans for the district.
Decentralized and Participatory Planning: The MGNREGA places a major part of the
responsibility for monitoring, supervising the projects and their implementation on the panchayats
(village councils), instead of the district collector. This encourages panchayats’ ownership of the
projects, and encourages decentralization. The Act provides for the local community to create projects
to meet local needs through the gram Sabha (a permanent body of people on the local electoral roll
that monitors panchayat plans), giving recognition to the fact that no District Collector or other
official of state administration could know the local needs of a community better the community itself.
Provisions on Transparency and Accountability: The law has aspects of transparency and
accountability built into it. For example, the law envisages that all information be proactively placed in
public domain, and information that is demanded will be given free of cost. For this purpose, the
government has made available web- enabled Household based database in public domain through a
website, http://www.nrega.nic.in. By the government’s claim, in 2013 about 12 crore job cards and 9
crore muster rolls are in public domain. The access to records is intended to prevent corrupt practices.
One of the best practices in this regard is the ‘transparency wall’, a public wall in each village with
NREGA information such as the names of all workers, how many days they have worked and how
much they have earned. This acts as a collective vigilance mechanism.
Incorporation of the Principle of Equity: The law attempts to promote gender equality and
promote full participation by makings explicit entitlements for women. These include:
• prescribing that at least one-third of workers should be women. (MGNREGA, Schedule II,
Para 6:19)
• The guidelines clearly spell out equal wages to men and women for equal work done, and a
compliance with the provisions of Equal Remuneration Act.