Archive · 18 Jun 2025
India's Social Security: Coverage Rising, Loopholes Remain
India has improved social security, ranking second globally for coverage.
However, many salaried workers don't have benefits, and informal sector workers rely on government schemes.
Budget allocations for these schemes haven't increased enough to match the growing number of people needing help.
The rules for gig workers' social security are unclear, and the government's contribution to old-age pensions is very low.
India could learn from countries like Brazil, which guarantees social security.
Expanding social security benefits could help more people.
ILO ranks India second globally in social security coverage.
Social security coverage in India has risen to 64.3% of the population from 24.4% in 2019.
Over half of regular wage employees lack specified social security benefits.
Welfare scheme budgetary allocations haven't kept pace with beneficiary growth.
The Code on Social Security (2020) has loopholes concerning gig workers and informal workers.
- Who
- India's citizens, particularly workers in the informal sector and gig economy.
- What
- Analysis of the gap between India's welfare programs and the growing number of beneficiaries.
- When
- 2019 to 2024
- Where
- India
- Why
- To assess the effectiveness and reach of existing social security schemes.
Current Status
Future Recommendations
Overall Progress
Current Status
Social security in India faces challenges.
Future Recommendations
Increased social security coverage.
Welfare Scheme Funding
Current Status
Budget allocations haven't kept pace with the increase of beneficiaries.
Future Recommendations
The current allocations are appropriate for the circumstances.
Social Security Policies
Current Status
The Code on Social Security has loopholes.
Future Recommendations
The current policies require additional refinements.
- Social Security Coverage (2019)
- 24.4% of the population
- Social Security Coverage (Current)
- 64.3% of the population
- Regular Wage Employees w/o Benefits (2023-24)
- 53.4%
- Old-age pension contribution stagnation
- Rs 200 a month since 2006
- Gig Workers by 2030 (projected)
- 23.5 million