🗞️ Why in News The International Labour Organization (ILO) released its flagship report “Universal Social Protection in Changing Labour Markets: Protecting Workers in All Types of Employment” in mid-April 2026. The report urges governments to extend social protection to all workers — including the growing informal, temporary, part-time, gig, and self-employed workforce — and reframes the goal from “poverty reduction” to “poverty prevention” through universal, financed guarantees.
What the Report Says
Core Framework
The ILO identifies nine branches of social protection under its 1952 Convention No. 102 (Social Security Minimum Standards):
| # | Branch |
|---|---|
| 1 | Medical care |
| 2 | Sickness benefits |
| 3 | Unemployment benefits |
| 4 | Old-age benefits |
| 5 | Employment injury benefits |
| 6 | Family benefits |
| 7 | Maternity benefits |
| 8 | Invalidity benefits |
| 9 | Survivors’ benefits |
The 2026 report argues that in “changing labour markets” (characterised by platform work, remote work, short-term contracts, and informality), traditional employment-linked social security models are failing — leaving the majority of the global workforce unprotected or under-protected.
Global Gaps
- 4.1 billion people (~53% of world population) have no access to any social protection
- 2 billion people are only partially covered
- Only ~31% of the world’s workers enjoy full protection across all 9 branches
- The informal economy accounts for ~60% of global employment — and has particularly weak coverage
Key Recommendations
- Universal coverage anchored in law — not tied to employment contracts or employer contributions alone
- “Poverty prevention” framing — social protection as a preventive tool, not a residual welfare patch
- Progressive domestic financing — wealth taxes, inheritance taxes, financial transaction taxes, resource rents
- Portable, digitised entitlements — workers retain rights across job transitions
- Extension to gig/platform workers — specifically addresses the algorithmic employment economy
India in the Report — Where We Stand
Current Indian Social Protection Coverage
| Scheme | Target Group | Coverage (2024-25) |
|---|---|---|
| EPF (Employees’ Provident Fund) | Formal employees in establishments 20+ | ~6.5 crore active subscribers |
| ESIC (Employees’ State Insurance Corporation) | Industrial workers earning <₹21,000/month | ~3.6 crore insured persons |
| NPS (National Pension System) | Government + voluntary private | ~8 crore subscribers |
| APY (Atal Pension Yojana) | Unorganised workers | ~6 crore enrolled |
| PM-SYM (Pradhan Mantri Shram Yogi Maandhan) | Unorganised workers | ~55 lakh enrolled |
| PM-JAY / Ayushman Bharat | Bottom 40% population | ~55 crore covered (in principle) |
| PMJJBY, PMSBY | Basic insurance for all | ~25 crore + 52 crore enrolled |
| One Nation One Ration Card (ONORC) | Migrant workers | Portable PDS — 80 crore beneficiaries |
| e-Shram portal (2021) | Unorganised workers | ~30 crore registered |
Per ILO’s methodology, India’s effective “full-coverage” share is ~25-30% — above the global informal-economy average but well below OECD levels (80%+).
The e-Shram Database — India’s Crown Jewel
- Launched August 2021 by Ministry of Labour & Employment
- 30+ crore unorganised workers registered (as of early 2026)
- Aadhaar-based, self-registered, portable
- Creates the world’s largest database of informal workers
- Enables scheme-delivery targeting (Pradhan Mantri Garib Kalyan Yojana, PM-SYM, etc.)
But: Registration ≠ benefits. Most e-Shram registrants have not received structured social protection beyond general welfare schemes — the data exists; the pipes to deliver substantive coverage are still being built.
The Code on Social Security, 2020
India’s big attempt to rationalise social security: the Code on Social Security, 2020 — part of the four Labour Codes consolidating 29 existing labour laws.
What it Does
| Provision | Detail |
|---|---|
| Consolidation | Merges EPF Act 1952, ESIC Act 1948, Maternity Benefit Act 1961, Payment of Gratuity Act 1972, and 5 others |
| Gig and platform workers | First-ever statutory recognition (Chapter IX) — requires social security fund contributions from aggregators |
| Social Security Fund | Central fund for unorganised, gig, and platform workers |
| Aggregator contribution | 1–2% of annual turnover of aggregators (or up to 5% of payments to gig workers, whichever lower) |
| e-Shram universal platform | Statutory backing under the Code |
Implementation Status (April 2026)
- Code passed: September 2020
- Rules notified: Partial — final rules drafted but not fully operationalised
- Aggregator contribution: Not yet enforced
- State-level resistance: Some states (Kerala, Karnataka) have their own gig-worker welfare boards; friction with central framework
The ILO’s 2026 recommendations align closely with this Code’s intent — but its actual implementation is the critical test.
Gig and Platform Workers — The New Frontier
Scale
- India has an estimated ~1 crore (10 million) gig and platform workers in 2026 (NITI Aayog “India’s Booming Gig and Platform Economy”, 2022)
- Projected to grow to ~2.35 crore by 2030 (≈4.1% of non-agricultural workforce)
- Concentrated in: ride-hailing (Ola, Uber, Rapido), delivery (Swiggy, Zomato, Zepto, BigBasket), home services (Urban Company), content (social media)
State-Level Models
| State | Framework | Status |
|---|---|---|
| Rajasthan | Platform-based Gig Workers (Registration & Welfare) Act 2023 | First dedicated state law; welfare fund operational |
| Karnataka | Platform-based Gig Workers (Social Security & Welfare) Bill 2024 | Passed; partial implementation |
| Telangana | Platform-based Gig Workers (Social Security) Bill 2025 | Under consideration |
These states have moved faster than central rules, creating a patchwork. The ILO report’s call for universal, legally-anchored protection would favour federal harmonisation.
Financing the Extension — The Fiscal Question
What It Costs
- Extending basic social protection (old-age pension + health + disability + maternity) to all unorganised workers: ~₹3-5 lakh crore/year additional fiscal commitment
- Global ILO estimate: 3-4% of GDP for developing countries to achieve universal basic protection
Financing Mechanisms Recommended by ILO (and India’s Options)
| Mechanism | India’s Fiscal Space |
|---|---|
| Progressive income tax | Top tax rate now 42.7% with surcharges; further hikes face political resistance |
| Wealth tax | Abolished in 2015-16 budget; reintroduction debated |
| Inheritance / estate tax | None in India since 1985; politically difficult |
| Aggregator contribution (gig) | Legislated (Code 2020); not yet operationalised |
| Resource rents | Mineral cess, carbon tax — partial; expansion possible |
| Financial Transaction Tax (Tobin) | Proposed periodically; not implemented |
The report explicitly calls on developing countries to explore wealth and inheritance taxes — a politically challenging recommendation in the Indian context.
Comparative Lens — What Other Countries Have Done
| Country | Approach | Result |
|---|---|---|
| Brazil | Bolsa Familia + CadÚnico (universal registry) | Poverty reduction; but contingent on political continuity |
| South Africa | SASSA grant system (unconditional cash for children, elderly, disabled) | ~30% of population covered |
| China | Dibao (minimum living allowance) + urban-rural health insurance | Nearly universal health coverage |
| Germany | Bismarck-model social insurance + basic guaranteed income (Bürgergeld) | Strong but ageing-pressure stress |
| Nordic (Denmark, Sweden) | Tax-financed universal protection | Very high coverage; ~50% tax-to-GDP |
| India | Hybrid — contributory (EPF, ESIC) + tax-financed (PMJAY, PMAY) + informal schemes (PM-SYM) | 25-30% effective universal coverage |
The Political Economy Question
Why Universal Social Protection is Politically Difficult in India
- Fiscal centralisation: Most tax revenue accrues to the Centre; most welfare delivery is by states → mismatch of capacity and authority
- Identification challenges: 80% non-agricultural employment is informal; many workers aren’t digitally registered or Aadhaar-linked in real time
- Benefit leakage: Despite Aadhaar authentication, corruption and intermediary skimming persist in scheme delivery
- Employer resistance: Aggregator contribution mandate in the Code 2020 has faced sustained push-back
- Political cycle: Welfare expansion is often tied to electoral cycles; politically-valuable announcements precede structural reform
Why It’s Getting Easier Politically
- Digital infrastructure maturity: JAM trinity (Jan Dhan, Aadhaar, Mobile) + UPI + e-Shram reduces delivery friction
- Post-COVID consensus: The pandemic exposed informal workers’ vulnerability; both Centre and states embraced cash transfers
- Global conversation: ILO, IMF, World Bank increasingly push universal coverage; India’s policy discourse has evolved
What to Watch (2026-2030)
| Expected Development | Likely Timeline |
|---|---|
| Aggregator contribution rules notified | 2026-27 |
| Social Security Fund becomes operational | 2027 |
| National gig worker welfare framework | 2027-28 |
| Old-age pension for all unorganised workers | 2028-30 (under political negotiation) |
| Universal maternity + parental leave | 2027-30 (currently limited to formal sector) |
| Integration of e-Shram with PMJAY | 2026-27 (progress ongoing) |
UPSC Relevance
| Paper | Angle |
|---|---|
| GS2 — IR | ILO; Convention 102 (Social Security Minimum Standards); Nagoya-like benefit-sharing (parallel) |
| GS2 — Governance | Code on Social Security 2020; Labour Codes architecture; fiscal federalism |
| GS2 — Social Justice | Universal vs targeted welfare; informal workers; gig economy |
| GS3 — Economy | Fiscal financing; PLI + social protection balance; poverty prevention vs reduction |
| GS3 — Technology | e-Shram; JAM trinity; digitised entitlements |
| Prelims | ILO (1919, founding member India; HQ Geneva) · Convention 102 (1952, 9 branches of social protection) · Code on Social Security 2020 · e-Shram (Aug 2021, Ministry of Labour & Employment) · PM-SYM, APY, PMJJBY, PMSBY · NITI Aayog gig report 2022 |
| Interview | “Is India’s Code on Social Security 2020 — with its gig-worker provisions — an adequate response to the ILO’s 2026 Universal Social Protection framework, or does implementation remain the structural bottleneck?” |
📌 Facts Corner
ILO Report 2026: “Universal Social Protection in Changing Labour Markets” · Calls for coverage across all 9 branches of ILO Convention 102 (1952) · Frame shift: “poverty prevention” over “poverty reduction” · Calls for progressive, wealth, and inheritance tax financing.
Global Gap: 4.1 billion people (~53%) have NO social protection · Only ~31% have full multi-branch coverage.
India’s Architecture: e-Shram portal (2021) — ~30 crore unorganised workers registered · Code on Social Security 2020 — merges 9 labour laws, first statutory recognition of gig/platform workers · Aggregator contribution: 1-2% of turnover (not yet enforced) · PMJAY covers ~55 crore · EPF ~6.5 crore · ESIC ~3.6 crore.
Gig Economy: ~1 crore workers (2026); projected ~2.35 crore by 2030 (NITI Aayog 2022) · Rajasthan, Karnataka, Telangana have state-level gig worker laws · Central rules pending.
ILO: Founded 1919 (Versailles Treaty) · HQ Geneva · Only tripartite UN agency (Govt + Employers + Workers) · India is founding member · Nobel Peace Prize 1969 · GS2: IR/Governance; GS3: Economy.
