An Evaluation of Social Security Provisions and Beneficiary Satisfaction among Workers in the Unorganized Sector

Abstract

Social security is an essential component of social justice, human dignity, and economic well-being, providing protection to individuals against various social and economic uncertainties. It represents a collective responsibility of society and the government to safeguard vulnerable populations from risks such as unemployment, illness, disability, old age, and financial insecurity. The fundamental objective of social security is to ensure a minimum standard of living and promote equitable opportunities, particularly for individuals who lack sufficient resources to overcome economic and social challenges independently.In India, social security has gained considerable importance in the context of globalisation, economic liberalisation, and changing employment patterns. Although globalisation has created new opportunities for economic growth and employment, it has also introduced significant challenges concerning job security, working conditions, income stability, and labour welfare. These challenges are particularly The present study critically examines the significance of social security measures and labour welfare policies in the context of globalisation, with particular reference to workers in the unorganised sector in India. It focuses on the objectives, provisions, and intended benefits of government-sponsored welfare schemes while exploring the challenges associated with their implementation, accessibility, and effectiveness. The study also considers the importance of strengthening labour legislation, improving institutional coordination, and expanding social protection to economically disadvantaged and socially vulnerable sections of society.

Introduction

Social security schemes play an important role in protecting workers against financial difficulties arising from illness, death, loss of livelihood, and old age. In India, workers in the unorganized sector often lack access to formal health insurance, life insurance, and pension benefits. To address these challenges, the Government of India has introduced various social security programmes aimed at improving the welfare and financial security of economically vulnerable populations.

This study focuses on three major schemes: Aam Aadmi Bima Yojana (AABY), Rashtriya Swasthya Bima Yojana (RSBY), and National Pension Scheme–Swavalamban (NPS-S). These schemes address three essential aspects of social protection: life insurance, healthcare coverage, and retirement savings.

The literature review identifies several challenges affecting the implementation of social security schemes, including fragmented administrative structures, poor coordination among government agencies, outdated beneficiary records, and difficulties in identifying eligible households. Errors in Below Poverty Line (BPL) lists can result in deserving families being excluded while ineligible households receive benefits. Limited awareness, inadequate documentation, and registration difficulties further restrict access to these programmes.

The three schemes have the following key features:

• Aam Aadmi Bima Yojana (AABY): Provides life insurance protection to eligible economically disadvantaged individuals, particularly rural landless households and workers in specified occupational groups. The scheme was designed to offer affordable insurance coverage and financial assistance to beneficiaries' families.

• Rashtriya Swasthya Bima Yojana (RSBY): Provides health insurance coverage for eligible low-income families, including cashless hospitalization at empanelled public and private hospitals. The scheme uses smart cards and biometric verification to facilitate access to medical services.

• National Pension System–Swavalamban (NPS-S): Encourages workers in the unorganized sector to save for retirement and improve their long-term financial security. The broader National Pension System provides portable retirement accounts and professionally managed investments under the supervision of the Pension Fund Regulatory and Development Authority (PFRDA).

The scope of the study is limited to examining workers' awareness, accessibility, utilization, and satisfaction regarding these schemes, as well as their contribution to improving socio-economic conditions. The research adopts a descriptive design and uses primary data collected through structured questionnaires from 150 respondents across six occupational categories, with 25 respondents selected from each group. These categories include porters, female vendors, female domestic workers, female construction workers, drivers, and security guards. Convenience sampling was used, and the responses were analyzed through frequencies, percentages, and Likert-scale measures.

The main objectives of the study are to identify government social security schemes, assess workers' awareness of their eligibility and benefits, evaluate their satisfaction with existing provisions, identify implementation challenges, and suggest measures for improvement.

The preliminary findings indicate that respondents generally demonstrate a moderate level of agreement regarding the government's commitment to social security initiatives. However, the study identifies a significant awareness gap: 54% of respondents were unaware of the social security schemes introduced by the Government of India. This lack of awareness may be associated with limited education, insufficient access to reliable information, and inadequate awareness campaigns.

References

[1] Life Insurance Corporation of India (LIC). (2015). Aam Aadmi Bima Yojana: Features and benefits. Retrieved March 18, 2015, from http://www.licindia.in/aam_admi_features.htm [2] National Commission for Enterprises in the Unorganised Sector (NCEUS). (2015). National Commission for Enterprises in the Unorganised Sector. Retrieved March 20, 2015, from http://nceuis.nic.in/ [3] Pension Fund Regulatory and Development Authority (PFRDA). (2015). National Pension System (NPS). Retrieved March 20, 2015, from http://www.pfrda.org.in/ [4] Ministry of Labour and Employment, Government of India. (2015). Rashtriya Swasthya Bima Yojana (RSBY). Retrieved March 18, 2015, from http://www.rsby.gov.in/ [5] IFMR Research – Centre for Microfinance & IFMR Finance Foundation. (2014). Comprehensive social security for the Indian unorganised sector: Recommendations on design and implementation. IFMR Finance Foundation. [6] Government of India. (2008). The Unorganised Workers\' Social Security Act, 2008. The Gazette of India, Extraordinary, Part II,

Copyright

Copyright © 2026 Sanjay Anand. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.