The E Shram Card has many advantages. Besides giving an individual identification number to workers, it also facilitates the Government in devising social security schemes. This card will facilitate the workers by offering various schemes for their betterment. These schemes will also help them in getting employment. They will be able to avail various benefits provided by the Government.
Provides a unique identification number to unorganized workers
E-Shram card is an online platform for unorganized workers in India. The card is similar to Aadhar card and provides a unique identification number. It is mandatory for workers in the informal sector to register for the card. To register, candidates should have an Aadhaar-linked mobile number and a savings bank account number with IFSC code.
The E-Shram portal was launched on August 26, 2021, and it is estimated to cost around Rs 704 crore. Its aim is to register more than 380 million workers in the unorganized sector. Anyone between the ages of 16 and 59 who does not pay income tax and works in the unorganized sector is eligible to register. The government needs to step up registration drives and industry bodies must share responsibility to register unorganized workers.
The new E-Shram portal will create a national database of unorganized workers. This database will include information about the workers’ name, address, skill types, and family details. This information will help the government understand the exact number of unorganized workers across the country.
The new E-Shram Card provides an unique identification number to unorganized workers. It is issued by the Ministry of Labor and Employment and is valid for life. The card allows unorganized workers to obtain financial aid from various institutions in any region of the country.
Facilitates Governments to devise social security schemes
The provision of social security in a society is not always simple. The provision of social benefits can make life better or worse depending on the policy framework. The design of a social security scheme may also be influenced by climatic and commodity price fluctuations. It is often difficult to know what the operating environment will be like, as well as the relative price changes induced by the introduction of a new programme.
Hence, it is important for the government to play an active role in social security. It is important to note that social security involves several groups. However, the incentives for individuals in a social security scheme may affect other groups as well. Hence, it is important to note that individual incentives are usually discussed differently than group incentives.
Social security can be defended on the basis of several arguments, such as paternalism, utility, living standards, and basic human rights. Depending on the nature of these arguments, government may see a duty to provide basic protection, education, and other services to its citizens. This obligation might be enforced through public pressure. In addition, institutions that foster popular dissent are a good way to sustain the reallocation of resources to social security.
The government’s capacity to provide social security schemes is constrained by the constraints of its budget. In developing countries, the government may face greater challenges when it comes to raising the necessary revenue. Moreover, the GNP per capita in developing countries is low, which limits the ability to fund social security schemes.
Provides direct benefits to unorganized workers
The e-Shram Card is a centralized database for unorganized workers. Once linked with their Aadhaar Card, the card allows workers to access various social security schemes. It is also linked to a welfare fund. Unorganized workers who are eligible to register for the card can avail accidental insurance cover of two lakhs. Moreover, the central ministry will provide assistance to unorganized workers during national emergencies.
The E-Shram Card is available online and can be applied for by unorganized workers. To apply, the beneficiaries must be unorganized workers and must have a valid mobile number linked to their Aadhaar card. Once they register for the card, the government will transfer the benefits directly to their bank accounts.
The most important component of the e-Shram Card is the Universal Account Number (UAN). This is a twelve-digit unique number allocated to each member of the e-shram portal. It will remain valid for the entire life of the worker and will not need renewal. In addition to the benefits listed above, the card will also help the worker access various social welfare schemes offered by the government.
Registration for the E-Shram Card can be done online or through the mobile application. Once registered, the card will be valid throughout the country and will provide access to many schemes. This new card is beneficial for both workers and their employers.