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  • 1. Abhilasha NS, Arun S, Biswajit Sarmah, Nishant Chavan, Rahul Anthwal Azim Premji University, Bangalore Footloose Livelihoods: Extending social security to the informal sector Theme - Protecting The Vulnerable: Providing Social welfare to Informal sector workers
  • 2. 1,455 3,530 3,335 2,500 8,531 13,100 7,374 35,968 4,873 7,172 7,943 7,139 17,808 29,900 25,101 83,270 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 Employment (2008) Projected Employment (2022) Focus: Identification of bottlenecks in extending social security to construction workers in Karnataka and feasible interventions to overcome them. Scope:  Estimated 15 lakh construction workers in Karnataka, Only 3 lakhs are registered so far.  Rs 2000 cr. welfare fund with Karnataka Building and other Construction Workers Welfare Board (KBOCWWB)  Low registration, inability to attract workers to register. Issues:  Excessive reliance on trade unions for registration (high fees charged), low engagement of civil society.  Trade Unions unable to register workers (mostly migrant) at construction camp sites.  Cards not reaching the registered beneficiaries.  Inadequate manpower at KBOCWWB.  Cumbersome process of claims for benefits.  Poor data storage and analysis. Problem: Inaccessibility and marginal utilisation of eligible welfare benefits by construction workers in Karnataka Construction industry: fastest growing industry All India Employment Numbers (In ‘000s) Source: NSDC Skill Gap Analysis Report 2009
  • 3. Engaging various stakeholders for different constituencies of construction workers Manpower and Capacity Building Automation in registration and renewal of workers, and in utilisation of eligible benefits Proposed Solution Tackle the problem of low enumeration and design of welfare delivery system to access eligible benefits by the construction workers
  • 4. High Level Description Engaging various stakeholders for different constituencies of construction workers • Trade Unions- in small scale construction sites & non- migrant construction workers. • KBOCWWB and NGOs- Large construction sites + migrant construction workers. • Plural approach, building on existing systems • Govt machinery – cumbersome, bureaucratic Automation in registration and renewal of workers, and in utilisation of eligible benefits • Biometric registration, on the spot delivery of cards through • Automatic digital data storage/analysis. • Reduction in paperwork. • Accessibility of benefits for mobile workers. • Cost effective in long run. • Overcomes delays and card non-delivery. • Electronic claims of benefits. Solution • Description • Rationale Manpower and Capacity Building. • Increase the number of employees dedicated to identification and registration. • Time bound, dedicated facilitation of registration • Outsource the technical process of registration. • Cost-efficient, dedicated team • Skilled manpower like medical doctors to process medical benefit claims. • Rapid settlement of claims • Review & Monitoring : District Surveillance Committee under Labour Officer.
  • 5. Data Central Server State Server District Server Registration Toolkit On The Spot Card Delivery Beneficiary (Proof of identity, age, doctors certificate) District Registration Authority (DRA) Worker Identification Officer (WIO) (Labour Union/Govt) Employer DataData KBOCWWB REGISTRATION No. of workers to be registered 1,000, 000 Time frame 180 days Registration Toolkit Biometric reader, Camera,,Electricity, Software Location/Date/Time of Registration Labour Inspectors/ NGOs/Volunteers/Media will identify the construction site 1. Total districts in Karnataka : 30. 2. The manpower recruited by board will be engaged in benefit distribution/renewal/Kiosk offices after registration is over. 3. Every registration centre will have equipment to issue biometric card on the spot of registration.
  • 6. Category of Expenditure Nos/Units Required Annual Cost Total Cost I. Fixed Infrastructure Central Server at state level 1 1,000,000 1,000,000 District Server/Kiosk Cost 30 200,000 6,000,000 II. Manpower (Over and above present strength) Salary of the Additional Executives. 30 300,000 9,000,000 Salary of Additional Technical Operator. 30 180,000 5,400,000 Office Rent/Maintenance 30 600,000 18,000,000 III. Biometric Registration and Card Issuance on the spot Registration/card Issuance Cost 1,000,000 120 120,000,000 IV. Total Expenditure 159,400,000 Business Contingency Plan • Reissuance of lost card • Reporting of lost card • Addition and deletion of members • Subscription of members • Photo/Thumb impression correction • Any other error correction Registration Process • Awareness and intimation slips will be given to all the sites before registration day (RD). • On the RD kits, manpower, WIO will visit the site. • Every registration site will have WIO to authenticate the registrations. • Worker will pay the registration fees along with relevant documents to get his biometric data submitted and receive a card on the spot. • Auto-digitized registration data will be loaded in the District Servers which will be further connected to State Server.
  • 7. Impact  All amounts in Indian Rupees | No of Registrations for 2015-16 & 2016-17 considered constant as of 2014-15 | Projected Benefits payout from last 5 years growth trend. (Sources: KBoCWW) Estimated Benefits In Successive Years After Proposed Registration Tangible Intangible 10 lakhs enrolment in 6 months. Benefit payout of Rs. 41 Cr in 2014-15 and 151 Cr in 2016-17. Highest benefit distribution in Children Education, Funerals & Health. Greater availability of social credit/insurance due to expectations of benefits from the govt. Reduction in the burden of health expenditure. Open up avenues for educaitonal opportunities. 2012-13 2014-15 2015-16 2016-17 No of registrations No of Claims Amount Paid No of projected registrations Projected Payout Projected Payout Projected Payout Education 270000 6420 13964200 1300000 35,290,224 278,200,000 556,400,000 Marriage 894 8365000 19,565,657 95,382,576 143,073,864 Maternity 99 594000 1,375,000 8,937,500 13,406,250 Hospitalization on Illness 159 133750 856,329 1,284,493 1,926,739 Major Illness 154 4495555 28,661,989 42,992,983 64,489,475 Death 79 6309000 39,304,938 58,957,407 88,436,111 Funeral 553 10362000 285,387,686 428,081,530 642,122,295 Total 8358 44223505 410,441,823 913,836,489 1,509,854,734
  • 8. Before and After Scenario Issue Existing processes After Implementation of proposed solution Manpower of Governement KBOCW with officers in deputation and contract executives KBOCW with full time officers and increased and specifically skilled executives – medical, social, etc. Registration Agency Registration through Trade Union/NGO/Dept. in for the Construction workers. Trade Union: Focus on local construction workers. KBoCWWB/NGO: Migrant construction workers, big project sites Registration & storage of Data Cumbersome Paperwork, expensive for construction worker, loss of wage, delay/no delivery of cards Biometric registration and card delivery on the spot, robust electronic data Benefit Accessibility Difficulty in accessibility Construction workers can avail benefits from anywhere. Amount of Benefits Rs. 4.42 Crore of welfare benefit distribution. Annual benefit distribution of Rs. 41 Crore after one year and Rs. 151 Cr. after two years. Mode of remitting benefits Direct credit to account of beneficiary but no didgital records to curb misuse. Direct credit of benefits to account and maintenance of data to avoid fraud /duplicate claims.
  • 9. Replicability and Scalability To Other States • Depending on the size of labour force in construction industry. • Strength and constituency pattern of Trade Unions and NGOs. • Presence of migrant labour force may need special strategy. • Build inter-state coordination to extend benefits to workers. To Other Informal Sectors Participants: • Identification by existing bodies working with the workers of sectors e.g. Street Vendors Union, Resident Welfare Association (RWA) etc. • Regulatory and welfare body as per specific Acts. Funds: • Registration fees, employer’s contribution, government grants. Process: • Biometric, on the spot registrations. To other welfare schemes: • Data of registered workers can be used to secure benefits other from schemes such as Rashtriya Swasthya Bima Yojana (RSBY) etc. • Respective state welfare boards can use the data of registered workers to promote modular education among children of informal sector by leveraging unique educational resources by NGOs and pvt sector e.g.- Azim Premji Foundation1
  • 10. Political Challenge • Access of benefits by migrant construction workers in their home state without collaboration among states. • Prospects of demand from other sectors which have scarce funding sources. • Full autonomy to such a huge fund bearing board i.e. KBOCWW is difficult. Economic Challenge • When maximum number of workers are registered, the pilferage through fraud/duplicate claims will be high in absolute numbers. Legal Challenges • Challenges of identification of age of worker in absence of document . Impact on pension etc. • Termination of contract of registration agency is not easy in case of defaulting. Social Challenge • Possibility of misusing the scheme by local power-lords. • Lesser registration of female construction workers. Technological Challenges • Technological failures due to electricity , machine breakdown. Challenges & Mitigation Factors
  • 11.  Semi-structured interviews with construction workers (migrant and local) in Bangalore.  Interactions with officials of the KBOCWB, Trade Unions, etc.  The Challenge of Employment in India: An Informal Economy Perspective: Volume I - Main Report, National Commission For Enterprises in the Unorganised Sector, New Delhi: Dolphin Printo Graphics, April, 2009  D. Rajashekhar and Suchitra J Y, Employment security for the unorganized sectors workers in Karnataka, Institute for social and economic change, Working Paper- 169, 2006.  Prasad, R.S. Nithin et al, A Study on Building and Other Construction Workers Welfare Schemes/ Amenities in Karnataka, SASTech Journal, Volume 10, Issue 1, May 2011, pp- 59-66.  Sharma, Alakh. N and Dhruv Sood, Migration and Informality, Institute of Human Development, New Delhi <>  Report on Conditions of Work and Promotion of Livelihoods in the Unorganized Sector, National Commission For Enterprises in the Unorganised Sector, New Delhi: Dolphin Printo Graphics, April 2007.  Dreze, J. and A. Sen, Public Action for Social Security: Foundations and Strategy. In E. Ahmed et al (eds.), Social Security in Developing Countries, New Delhi: Oxford University Press, 1999.  Tiebout, Charles. M, Pure Theory of Local Expenditures, Journal of Political Economy, Volume 64, No. 5, University of Chicago Press, 1956, pp. 416- 424 URL<> References
  • 12. Annexures