By Dr. Gyan Pathak
Social protection gaps in India are still at alarming level. More than half of the population (51.2 per cent) in the country are still totally unprotected, while over half of the global population (52.4 per cent) are covered by at least one social protection scheme, revealed the latest ILO flagship report on social protection.
Though it is a welcome progress at the global level, says the ILO’s World Social Protection Report 2024-26, the progress is dampened by the fact that 3.8 billion people are still entirely unprotected from life’s challenges and the impacts of climate change. It is for the first time at the global level, people under at least one social protection coverage exceeded half of the population.
If progress were to continue at this rate at the global level, it would take another 49 years – until2073 – for everyone to be covered by at least one social protection benefit. This pace to close protection gaps is too slow.
Moreover, the world is currently on two very different and divergent social protection trajectories: high-income countries (85.9 per cent)are edging closer to enjoying universal coverage; and upper-middle-income countries (71.2 per cent)and lower-middle-income countries (32.4 per cent)are making large strides in closing protection gaps. At the same time, low-income countries’ coverage rates (9.7 per cent) have hardly increased since 2015, which are unacceptably low.
In India, only 48.8 per cent people are covered under at least one social protection scheme, excluding health. Out of them 17 per cent are getting this benefit under contributory schemes, and the social security coverage to only 31.9 per cent of the people are tax-financed.
It should be recalled that even in the contributory pension schemes such as under Employee Pension Scheme, the minimum pension is Rs1000, while it is meagre Rs750 per month for orphan pensioners, and Rs250 per month for child pensioners. It shows the quality of social security coverage in the country especially for workers who contribute. Out of total 7.8 million pensioners in this scheme, 27.3 per cent, about 2.13 million, are getting minimum pension. It is very saddening that those contribute and work get such a treatment while in non-contributory pension schemes of several states old age pension is more than this amount.
Nevertheless, the ILO report shows that under the category of people protected by social protection systems including floors in India only 51.9 per cent children in the age group 0-15 years of age are covered. It is 43 per cent in the age group 0-18 years group. Social security coverage is available to only 58.2 per cent mothers with newborns.
Workers in case of work injury getting protection are only 8.3 per cent, persons with severe disabilities 18.3 per cent, unemployed getting protection is zero per cent, and older persons older persons 45.9 per cent. It is very disappointing that there is a huge gender gap in old beneficiaries – males getting coverage are 52.6 per cent while female 39.5 per cent. Only 38.2 per cent vulnerable persons in India are receiving social assistance benefits, while universal health coverage is available to only 63.3 per cent people.
India is yet to ratify several of ILO social security conventions. The country is signatory to social security conventions covering only medical care, sickness, maternity and partially to the benefit of migrant workers. However, it still needs to ratify conventions to give social protection against unemployment, old age, employment injury, protection for family, individuality, and survivors.
Beneficiaries receiving an old-age pension as percentage of persons above statutory retirement age in India are 45.9 per cent. There is huge gender gap in this – men are 52.6 per cent while women are only 39.5 per cent.
Beneficiaries receiving a contributing old-age pension as percentage of persons above the statutory are of retirement are only 15.7 per cent in the country. Here too is a huge gender gap – men getting contributory pensions are 20.5 per cent while women are only 11 per cent.
Beneficiaries receiving a tax-financed old-age pension as percentage of pensions above statutory age or retirement in India are only 30.1 per cent out of which men are 31.8 per cent and women are 28.5 per cent.
Active contributors to a pension scheme as percentage of the labour force above 15 years of age are just 45.8 per cent. Active contributors to a pension scheme as percentage of the working age population is, however, just 22.8 per cent. It means 77.2 per cent of the working age population are not contributors to any pension scheme. There is a too stark a gender gap among working age population, of whom 33.5 per cent male workers are active contributors for pension scheme but it is only 11.4 per cent for women workers.
It is very disappointing to note that India’s expenditure on social protection including healthcare is only 5.1 per cent. Domestic general government health expenditure in the country is only 1.1 per cent. Thus, India’s total expenditure on social protection excluding healthcare is only 4 per cent.
The ILO report also presents data on expenditure on social protection systems including floors, by broad age group. For children the expenditure is almost negligible to 0.0, while for working age group it is 1.0 per cent, and for old age people it is 2.8 per cent.
The report has warned that billions of people worldwide are left languishing and unprepared for the life-cycle and climate shocks ahead. It is imperative that effective social protection level needs to be significantly enhanced for Universal social protection coverage. Since, the report has put India among the 50 most vulnerable countries and territories of the world to climate change, it urgently needs universal social protection coverage. (IPA
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