This document proposes a digitized model for providing social welfare to informal workers in India. It notes that over 94% of India's workforce is informal. The proposed model would register informal workers through a unique ID and bank account. Funds would be distributed through an "Informal Sector Machine" (ISM) network similar to ATMs. A management team consisting of NGO members, social workers, and IT graduates would oversee fair distribution of government welfare funds to registered informal workers. The digitized system aims to provide regular work, proper wages, and access to healthcare, pension, and other benefits while minimizing corruption. Implementation challenges include gaining acceptance from informal workers and cooperation from banks to use the ISM network.

1. MANTHAN TOPIC
PROTECTING VULNERABLE:SOCIAL WELFARE TO INFORMAL WORKERS
TEAM DETAILS:
An innovative digitized model for the
welfare of the informal class of
workers
Ashwin Bawankar
Pradip Kumar Maharana
B.V.L.Sudheera
A.V.S. Lekya
Sudhanshu Das

2. Street, market
vendors and
hawkers
Home-based
workers
Garment workers
Waste pickers and
recyclers
Agricultural,
forestry and fish
workers
Domestic workers
*Disconcerting factors:
1. Unorganized and Fragmented,
2.Poor working condition due to lack of proper
workplace.,
3.Women insecurity,
4.Long working hours and low wages,
5.Irregularity in work ,
6.Lack of proper dignity in the society,
7.The basic needs such as food ,clothing and shelter
not being fulfilled.
*Choosing these problem-
We Personally believe that this problem should be the major
concern of the government as this is the root cause of the declining
economic stability of our country.
Providing ample resources and facilities to the informals would
boost their efficiency.
Their overall performance would enhance the country’s GDP
thereby stabilizing it economically .
*Over 94% (about 487 million) of working
population is a part of unorganized sector.
INFORMAL WORKERS COUNT

3. The system Uniquely organized, extremely reliable and easy to
implement.
Provides social recognition and all time work with proper wages.
Enhancing the health, living standard of the informal.
Digitized system: hence there is a minimum possibility of error and
doesn’t require a continuous monitoring.
Registering all informal workers through a unique ID and providing
access to smart card using a created bank account.
Providing government welfare to the informals fund through an
unbiased managed team consisting of NGO ,other social welfare
organization members and IT graduates.
Enhancing the informal workers standard by providing health,
pension, gratuity funds and giving house , work assurance.
Corruption free since the organization recruits people from
all classes various levels .
Large impact in less time.
Beneficing the informal sectors and hence boosting the
nation’s GDP.
Innovative digitized model first time for uplift-ment of this
Highlights
Implementati-
on
Model
Advantage
Over existing
System
Digitized model for the welfare of informal workers
Now we would like to through some light on our digitized model.

4. NGO/social welfare
organization
members
Students(MSW’s) Technical Graduates
Rationale for choosing
the working group
Work experience in non-
profit organization
Experience in social
work
Master in Social
Works(MSW)
Recruitment done on
the basis of their
innovation and
understanding of the
conditions of the nation
Technical graduates
Energetic youth who like
to serve the nation for its
economical stability.
Requirement: 2500 5000 5000
Nature of work : Organizing training
campaign among the
groups.
Propaganda among
people of government
welfare funds beneficial
for them.
Educating informal
about the proper usage of
their wages.
Creating awareness
among the informal
workers to know their
rights.
They are trained to
manage the organization
efficiently.
They distribute the work
to the entitled personals
 Taking the complain
calls from the workers and
providing the solution for
the same.
Will work on database
management.
Installation of the
software in respective
district level ISM’s.
Transferring the funds
and wages in the bank
account of the workers as
per the work of the person
Building the team and recruitment process

5. 2-3 worker leaders(WL) are
appointed in each district
allotting them a specified
work.
Worker Leader has
responsibility to register
himself and his co-workers in
the SWO.
WL acts as a mediator
between the SWO and the
workers.
WL helps the SWO creating
propaganda, and in
organizing necessary
awareness programs in his
radius of work.
Since a WL himself belongs
to the working class he would
be keen and prompt to the
workers problems and would
inspect them properly.
NGO/
SWO
members
MSW’s
IT
Graduates
Social
Organiz
ation
(district
level)
SWO
Transport
Women workers
Home Based
workers
Waste Pickers
Agricultural,
Forestry and
Fishing
Vendors and
Hawkers
Garment
workers
WL
WL
WL
WL
WL
WL
WL
NGO: Non-Government Organization
SWO: Social Welfare Organization
MSW: Master of Social Workers
WL : Worker Leader
Salient features
Recruitment
Management
and Mapping
Implementation

6. Registration can be
through
1. Home Based Survey
2. By referring data
from the census
reports
3. Creating propaganda
by SWO
(NGO’s/SWO’s)
4. Name, age,gender
nature of work,
, daily wage on an
average,location are
to be registered.
Registration of
informal sector
1. Database Management
team create all
database in computer
to avoid delay due to
paper work.
2. Creates bank account
for each person in bank
tied up with
government.
3. Issue smart card on
unique ID basis to
individuals.
4. Registration can be
done on unique ID
basis(AADHAR card).
Database
Management
 Firstly, they train each
other the work they do due
to which most of the
workers can do any type of
work.
 People will call,
online/offline register for
the work to be done.
 People directly approach
the organization for the
work.
 Organization members allot
the work to respective
workers in the field.
 Wages will be given by
organization to workers as
specified.
Work
Distribution
Recruitment
Management
and Mapping
Implementation

7. SUSTAINBILITY ,SCALABILITY
OF THE SOLUTION
Once implemented will work
fluently as ATM service as it is based
on digitized system.
About 487 million workers will
organized in a very reliable way.
DIGITIZED SYSTEM(INFORMAL
SECTOR MACHINE)
 An INFORMAL SECTOR
MACHINE(ISM)would work same as
our ATM’S.
 Software: Creating a software for
informal workers that will work in
current ATM’s.
 Installation: Then installing the
software in all ATM’S through
government technician.
WORKING OF DIGITIZED SYSTEM
 Person uploads current working
status(name, age, work, workplace,
etc)
 Person complain for the any
discrepancies(improper working
condition, women insecurity,
improper market rate / wages, etc).
 Person collect the wages and other
helping fund from the government
through the ISM.
ISM

8. *Recording
Complaint
Wages Transfer
DISTRICT
LEVEL
ORGANI-
ZATION
Registering
Complaint
INFORMAL
SECTOR
MACHINE
(ISM)
User
Database
UID
* COMPLAINT: They may include improper allotment of subsidies, problems due to
malfunctioning of administrative bodies that bother the life of the worker .
# REQUEST: To alter the user data when there is a change in his working status, also for
subsidies and funds provided as incentives by the government.
FUNCTIONING OF AN ISM
SYSTEM
Receiving wages

9. Inspection team
Inspection team forms for the inspection at random by government .
It consists of the district’s DSP, some member of the organization , some economist
and they have to inspect the organization as defined by government given
surprisingly.
As they have to inspect the random district so their should not be any chance of
corruption.
DL 1 DL 2 DL 3 DL 4 DL 5 DL n
Central government
Network of ISM’s(Informal sector Machine)
ORGANIZATION SET-UP
Informal workers
DL: District level organization

10. Resource flows In economy for social security – selected schemes
Scheme/ Institution Rs. Crore / year
1. EPFO ,ESIC,EPFO,LIC 13,700
2. CESS,SGRY 10,100
3.STATE government welfare 100
fund
4. Central Government 4,000
Employees Pension
5. State Government Employees 2000
Pension
Total 29,900
Totalfundingrequired
Organization
cost
Technology
cost
Logistics cost
Set up team includes office,
government vehicles(one time cost)
Software development cost
Software installation
Communication cost
MSW’s(5000 @ 1.5lakhpa)
NGO’s/SWO’s (2500 @ 1.2lakhpa)
IT Graduates(5000 @1.2lakhpa)
INR 165 Cr
INR 10 Cr
INR 1 Cr
MOTIVE
•Our motive is not just to provide the
informal a work but is also to promote
their all round development by
educating them about the proper
utilization of the resources provided or
earned by them.
•Providing a dignity and hence promoting
harmony in their lives which would avoid
their migration to other countries and

11. Concept risks Informal sector may not see viability of the model as this was totally different
from the traditional schemes and they may refuse to accept the change.
There are possibility that informal sector may get benefits without the proper
cause
Implementation
challenges
Banks may not allow to work informal sector software through the currently
existing ATM’s.
 There may be problem to transfer fund from central government to direct district
level as there are no state/regional level in our model.
Mitigation
factors
Funding this model can be the concerned factor as it is one time cost
IMPACT AND REACH
12500 working
members recruited
through all over
India.
5000 MSW’s, 5000
IT graduates, 2500
NGO’s/SWO’s
members
DATA-BASE
About 487million workers will
organized in fruitful way.
Approaching the informal sector
is the major problem got solved
once digitized.
Helping the informal sector
enhancing the Indian economy:
They get the proper wages, regular work,
proper living/working conditions.
They also get health,maternity,pension
,gratuity etc funds from the government.

12. Appendix
References:
1. The International Coordinating Committee on
Organizing in the Informal Economy (ICC) research
work of the informal economy.
2.Case study on informal workers .
3.Inidian Labor Organization ;project report on
informal workers in Odisha.
4.Text book on social protection of informal workers
by Francie Lund and Jillian Nicholson.
5.Labour laws in India :Wikipedia .
6.Welfare funds to informal sectors :project report by
institution.
7.Internet sources: Wikipedia, Project reports