How many workers could benefit from the proposed insurance scheme?

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Approximately 4.9 million informal sector workers could benefit from a proposed insurance scheme.

A new workers' insurance scheme specifically designed for the informal sector could potentially benefit around 4.9 million individuals. This initiative aims to provide a safety net for workers currently outside the purview of existing social protection frameworks, particularly those in precarious employment situations. The proposed scheme would extend coverage for a period of six to eight months following retrenchment or layoff.
Registration of Informal Sector is a Prerequisite

Before the implementation of any such insurance scheme, it is crucial for the government to first register the informal sector. This sector encompasses a substantial population of workers who are currently not under the government's jurisdiction, highlighting the need for formal recognition and data collection. Registration would allow for a clearer understanding of the workforce composition and facilitate targeted support.
Broadening Coverage Beyond Traditional Employment

The proposed insurance scheme is envisioned to cover a diverse range of occupations within the informal sector. This includes individuals working as security guards, hairdressers, and taxi drivers, among others. The aim is to extend social protection to those whose work arrangements do not fit the traditional employer-employee model.
Review of Existing Employment Insurance System Suggested

In addition to creating a new scheme, there is a call to review the existing Employment Insurance System (EIS) Act. Current provisions under the EIS Act do not extend to domestic workers, self-employed individuals, civil servants, and employees of statutory bodies and local authorities. An amendment or review could potentially bring more workers under its umbrella.

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How many workers could benefit from the proposed insurance scheme?

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