NEW DELHI– India has emerged as the world’s second-largest provider of social protection, with coverage expanding from 19 percent in 2015 to 64.3 percent in 2025, placing the country behind only China, according to official data.
The sharp rise follows a significant expansion of social welfare schemes for vulnerable populations and a series of labour reforms introduced this year, which are expected to further strengthen social security for workers.
India’s progress was recognized internationally in October, when the country received the International Social Security Association Award 2025 for Outstanding Achievement in Social Security at an event held in Malaysia.
Continuing the reform momentum, Prime Minister Narendra Modi launched the Pradhan Mantri Viksit Bharat Rozgar Yojana on August 15, 2025, with a total outlay of Rs 99,446 crore. The scheme aims to incentivize the creation of more than 3.5 crore jobs over a two-year period, including 1.92 crore first-time entrants into the workforce.
More than 2.35 lakh establishments have already registered on the scheme’s portal, with the number of first-time employee beneficiaries estimated at over 20.7 lakh so far.
The employment initiative places special emphasis on the manufacturing sector to support job creation, improve employability and expand social security coverage. Under the scheme, first-time employees are eligible to receive one month’s wage, capped at Rs 15,000, while employers receive incentives for up to two years for generating additional employment, with extended benefits for manufacturing firms for another two years.
In a major structural reform, the government has consolidated 29 existing labour laws into four comprehensive labour codes: the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020.
The new framework is aimed at improving ease of doing business while expanding wage security, social protection and workplace safety, including for women, migrant workers, gig workers and platform workers.
The Code on Wages seeks to strengthen worker rights while simplifying compliance for employers through a uniform definition of wages and statutory minimum wages across sectors, improving income security and reducing disputes.
The Industrial Relations Code streamlines laws related to trade unions, employment conditions in industrial establishments and the investigation and settlement of industrial disputes.
The Code on Social Security extends coverage to all categories of workers, including those in the unorganized, gig and platform sectors, providing access to life, health, maternity and provident fund benefits. It also introduces digital systems and facilitator-based compliance to improve efficiency.
The Occupational Safety, Health and Working Conditions Code focuses on protecting worker rights, ensuring safe working environments and creating a more business-friendly regulatory framework.
To further strengthen social security delivery, the Employees’ Provident Fund Organisation has undertaken a major digital transformation this year. Measures include auto-settlement of claims up to Rs 5 lakh, a centralized pension system and biometric-enabled Universal Account Number activation to simplify processes for subscribers.
Similarly, benefits under the Employees State Insurance Corporation have been expanded, with coverage extended to 713 districts from 688 earlier. The number of hospital beds under the ESIC network has tripled to 87,715 in the 2024–25 financial year.
ESIC has also introduced the Scheme to Promote Registration of Employers and Employees, or SPREE 2025, offering a one-time opportunity for employers and workers previously left out of ESI coverage to register without facing retrospective liabilities or penalties. (Source: IANS)
