India's Social Security Coverage

India's government has launched several schemes in the field of social security, including the Pradhan Mantri Jan Dhan Yojana, Employees' Provident Fund Scheme, Pradhan Mantri Rojgar Yojana, and the Rural Workers' Pension Scheme for rural laborers. According to 2023‑24 data, 78 % of workers in the formal sector have pension or insurance coverage, while the rate in the informal sector is only 35 %. To reduce this disparity between rural and urban poor, the government has simplified registration procedures through digital platforms and mobile applications, resulting in 15 % more people enrolling in social security schemes.

Nevertheless, challenges remain despite the improvement in coverage. Lack of awareness among informal workers, limited access points, and administrative complexities are major obstacles. In particular, registration and contribution procedures for employees of micro, small and medium enterprises (MSME) are still complex, leaving many workers without any protection. Moreover, some states lack the necessary infrastructure for social security schemes, slowing the expansion of coverage in rural areas.

To address these issues, the government has allocated an additional 5 % fund for social security in the 2024 budget and announced the creation of a national social security portal that will integrate data from all schemes. At the same time, partnerships with digital banks and mobile wallets are being forged to promote financial inclusion. If these initiatives are implemented on time, social security coverage in India could exceed 60 % by 2025‑26, providing economic security to workers in the informal sector as well.