International Training Centre (Turin) 21-25 July 2003 Pong-Sul AHN

1. Social Security for Informal Workers : the Cases of India and Nepal International Training Centre (Turin) 21-25 July 2003 Pong-Sul AHN Senior Specialist on Workers Activities ILO Sub-Regional Office-New Delhi Social Security for Informal Workers

2. The Contents of Presentation  Social security in informal economy  The extension of social security  Case study of social security in India  Case study of social security in Nepal  Questions  Workplan Social Security for Informal Workers

3. Social Security in Informal Economy • Two billion people in the world are not covered by any type of formal social security • - neither by a contribution-based social insurance schemes • - nor by tax-financed social assistance. Social Security for Informal Workers

4. The extension of social Security • Through the mechanisms of statutory entitlements • By means of targeted social assistance programmes • Through social insurance schemes • Through income-generation activities Social Security for Informal Workers

5. Case study of Social Security in Gujarat India 1. Cooperative Society • 3,301 registered cooperatives societies in the Kheda District only • 950 of the milk cooperative societies out of 3301 - the village level society - District union - State Federation Social Security for Informal Workers

6. 2. Anand Milk Union Limited (AMUL) • 80,000 milk cooperative societies with over 8 million member farmers in the country • functioning on agricultural credit and non-credit, irrigation, employees’ credit, marketing, banking, housing, labour, etc Social Security for Informal Workers

7. 3. The Self-Employed Women’s Association (SEWA) • Giving both economic and organisational strength to women workers in the informal sector • linking up with the government poverty alleviation programmes • Bringing about a 25% increase in tobacco workers in farms and factories Social Security for Informal Workers

8. Case study of Social Security in Nepal 1. Gefont Health Cooperative Schme • Seed Money - 500 individual subscribers equivalent to NRs.100 per share - Gefont contribution - NRs.50,000 • Contribution - All members paying NRs.1 per day - Gefont subsidy for its membership Social Security for Informal Workers

9. Charges for medical check-up • - NRs.60 to cooperative members • - NRs.70 to Gefont members • - NRs.75 to general public • * The market rate is in the range of Rs.100-150 • Other services • - 6-15% of discount in medicine from the pharmacy • - Providing services to the dependents of the members • Kathmandu Model Hospital, October 200 to December 2001 • - 174 patients - costing NRs.246,664 • - Gefont Health Cooperative shared NRs.61.666 • - Phect Nepal shareed NRs.61,666 • - Patients paid around 50% Social Security for Informal Workers

10. 2. Emergency Fund Scheme • established in 1994 to assist its members, mainly construction workers, during contingencies such as loss of job, loss of income under strikes and lockouts, and sickness • Seed money - NRs.100,000 Social Security for Informal Workers

11. Contribution - Independent transport Workers’ Association of Nepal collects dues on the road from its members and non-members from 109 places - the collected sum average is NRs.26,420 per day and NRs.792,440 per month • Benefits - police custody allowance - medical allowance caused by accidents - assistance to survivors in case of death - legal assistance expenditure Social Security for Informal Workers

12. 3. Transport Workers’ Welfare Fund • Scheme - established by a few transport sector activities in 1974 - to provide financial and other assistance to transport workers during road accidents - the notion of “no drivers will be in jail; no one under police custody; and none will become disabled or dea - managed by 14 local offices under “Management Committee” of Independent Transport Workers’ Association • Contributor - private sector - individual drivers of the public sector Social Security for Informal Workers

13. 4. Cooperatives • Scheme - to assist their members in income generation and improvement in the living condition - related to health, handicraft, dairy products, vegetable products and employment activities - concentrated inn urban areas mostly in Kathmandu valley - engaged in saving credit activities but needs professional assistance Social Security for Informal Workers

14. Benefit - physically disabled - medical assistance of NRs.10,000 and life-time payment of monthly NRs.1000 - a scholarship of NRs.3000 for one child from the accident victim • Expenditure in 2000-2001 - paid NRs.14,93 millions to 836 car accidents [537 cases of death Social Security for Informal Workers

15. Questions • Many workers are in less secure employment such as self-employed, the casual and home-based workers • The most vulnerable groups are the disabled, widows, orphans and the elderly, who can not count on family support • Informal sector workers and their families live in poverty and a large proportion of them are women For example, female labour force in Asia in 2000 reaches 500 million. The vast majority are in agriculture without social security Social Security for Informal Workers

16. Risks and calamities facing the informal workers • Calamities [flood, fire, civil unrest and famine] • loss of earning power (disability, ill health, loss of assets] • life-cycle crises [death and martial breakdown] • sudden large expenditure [hospital, wedding] Social Security for Informal Workers

17. Principal social security needs by the informal workers • healthcare expenditure • death services, disability benefits • expenditure on basic education • maternity and childcare benefits Social Security for Informal Workers

18. Social security needs and priority • for urban residents - help with housing costs and employment • for old-age pensioners, orphans and widows - social assistance • for people in famine and unrest - social security measures • for the self-employed - crop and productive assets insurance Social Security for Informal Workers

19. Partnership to extend social security for the informal workers • the capacity of the government • social security agencies • insurance companies • social partners • Civil societies Social Security for Informal Workers

20. Workplan • Is there a reasonable balance between rural and urban participants within the project area? • What are the social insurance benefits that selected target group are willing to contribute to? • How much are different groups willing to contribute themselves? • To what extent will women be involved in the design and operation of the scheme? Social Security for Informal Workers

21. What is the organisational capacity of participatory organisations in the project? • Is sufficient expertise availabe to animate and coordinate the project work at the local level? • What are the political, economic, social and cultural conditions for the project? Social Security for Informal Workers

22. Indicators of achievements • Which target groups would need to have priority with regard to tax-financed social assistance? • What resources - at the local, regional and national levels - would be available? • What would be the conditions of cost-effective delivery of the social assistance benefits? • Are various groups of employers interested in extension to their workers? • How social partners monitor and evaluate the scheme? Social Security for Informal Workers