Explain how the e-Shram portal can help to address the issues faced by workers in the informal sector in India.
In India, more than 90% of workers are employed in the informal sector. The Ministry of Labour and Employment launched the e-Shram portal to register unorganized workers such as construction labourers, migrant workforce, street vendors, domestic workers, etc. It was formed on the directions of the Supreme Court to register unorganized workers so that they can avail the welfare benefits of various government schemes.
Issues faced by workers in the informal sector:
- Irregular employment and easy hiring-firing norms lead to a lack of job security.
- Irregular wages, which are often not commensurate with work performed, and denial of minimum wages.
- Lack of social security like insurance, and pension leads to challenges when faced with health issues, death, or disability.
- Not able to access government’s benefits meant for organized & formal sector.
Benefits of e-Shram Portal:
- It is a step in the right direction to register all the workers in India.
- It will connect them with job providers and will lead to the formalization of the workforce, as proper records will be maintained.
- It will help to reduce irregularity and uncertainty witnessed in the informal sector, by providing a stable platform.
This initiative, if implemented properly, will be helpful to solve problems associated with the informal sector. However, it also needs to protect the minimum wages, to give maximum benefits to informal workers.