The Union Cabinet Approved National Social Security Fund (NSSF) for Unorganised Sectors

The Union Cabinet of India on 28 July 2011 gave its approval for setting up a national level security fund (NSSF) for unorganized sectors named as National Social Security Fund. The fund is likely to benefit 43.3 crore workers in the unorganized sector. The fund will be administered by the National Social Security Board. The fund was announced during the budget 2010-11 by the Union Finance minister Pranav Mukherjee. The Ministry of Labour & Employment will be the nodal Ministry for the operation of the Fund.

According to an estimate done by the National Sample Survey Organisation total unemployment in both organised and unorganized sector is 45.9 crore workers. Out of them, 43.3 crore workers belong to unorganized sector. A large number of unorganized workers were having occupations like agarbatti-making, embroidery work, papad making and bidi making.

There is an absence of social security protection for unorganised workers in India despite the fact they form the most significant part of total workers in the country.