India’s social security system is fractured, and there are different attempts, tokenistic or otherwise, being taken from time to time. One such recent attempt (post covid response) was the introduction of informal workers’ social security portals like eShram (pan India) and eNirman (building and other construction workers, Gujarat).
In this article, we look at some key concerns in the design as well as the implementation of these portals like the digital divide, non-tangibility of benefits and the risk posed by social security portals operating without a legislative framework.
Digital Divide Causing Access Barriers
In this section, we look at the barriers workers face in accessing social security schemes with digital portals as their primary mode of registration (like eShram, eNirman, etc.).
According to the data (as of 2017) provided by the Working Group on Social Security (under the Ministry of Labour & Employment), India has a total workforce of 45.9 crores, out of which 94% is in the unorganized sector, and the remaining 6% is in the organized sector. So, the number of unorganized workers is 4,31,460,000 (43 crore+).
Even the Economic Survey of 2018-19, released on July 4, 2019, says “almost 93%” of the total workforce is ‘informal’. Research has shown that the COVID-19 situation has exacerbated vulnerabilities and pushed many people into further poverty and the informal sector. The Supreme Court, through its order in the case of Re miseries and problems of migrant workers (2020), gave December 31, 2021, as the deadline to complete the registration of unorganized workers throughout the country, and eShram was introduced as a response to this.
However, according to a tweet by the Director General Labour Welfare (DGLW), as of December 20, 2021, the number of registered workers under eShram is just over 12 Crores. It is evident that there is a long way to go before all of India’s unorganized workforce is registered under eShram.
One of the biggest design flaws of eShram, (apart from relying completely on digital mode for registration) is the lack of data convergence which means that people who somehow managed to cross certain access barriers to registering themselves have to skip through those very hoops once again possibly.
Let us look at some numbers to understand the magnitude of the digital divide in India and its repercussions on social security benefits, for which registration can be done only digitally. NITI Aayog’s Strategy for New India@75 highlighted the poor quality and reliability of the internet as a major problem in rural areas and also pointed out that 55,000 villages in the country are without proper mobile network coverage.
As of 2019, only 45.1 crores (0.451 billion) people had access to the internet [out of a population of almost 135 crores (1.35 billion)]. Further, the report also mentions that internet access is severely affected by issues of quality, reliability and weak signals with inadequate access to devices such as laptops, computers, smartphones, etc.
Similarly, as noted in a blog post, a nationwide survey of villages conducted by the Ministry of Rural Development in 2017–18 showed that 20% of India’s households received none to eight hours of electricity daily, 33% got 9-12 hours. Only 47% received more than 12 hours of power supply every day.
The only available option for people to register on these digital platforms is through Common Service Centers (CSCs) or eShram Kendras. These Kendras are limited in number and are not accessible easily by workers who are situated in industrial hubs. An added barrier is created when the worker who wishes to register under eShram/eNirman does not have their mobile number linked with their Aadhar card.
Despite the Supreme Court’s ruling on not making Aadhar mandatory for social security, in practice, it is not followed. Now, to link the mobile number/make name corrections or any other changes, the worker has to visit a designated bank/post office or Aadhar Seva Kendras (also limited to cities).
With these limited options and numbers before us, it is a no-brainer to conclude that sole reliance on digital forms of registration for the social security of unorganized workers in India is a sure way of excluding the intended beneficiaries.
Databasing And Conversion To Benefits
In this section, we try to understand how much of this database-ing digitally has resulted in tangible benefits. Right now, there is no clarity on how eShram will work with existing databases on informal workers and how to connect labourers to welfare schemes. There is no assurance on eShram beyond recognition of informality.
To begin with, let us look at Ahmedabad (Gujarat)- which is a hub of construction projects and attracts a large number of construction workers from nearby areas. It is shocking that as of February 1, 2022, there is 1,951 crore rupees worth of unspent money in Gujarat State Building and Other Construction Welfare Board (refer to RTI here).
Further, there are only 76,897 workers registered as “beneficiaries”. This number is a far cry away from the total number of construction workers in Ahmedabad itself, let alone all of Gujarat. It reflects on the lack of awareness and the digital barriers resulting in low registrations and social security access.
According to the report submitted by the working group on social security, it was seen that utilization of funds by most of the Welfare Boards is minimal, and a considerable amount is lying unspent as some States have not been able to register workers and formulate and implement welfare schemes for the construction workers.
Potential Data Leaking Risks In The Absence Of Legislative Framework
As per a report from cybersecurity company Surfshark, India ranked third in the world in several data breaches, with a total of 86.63 million Indian users breached by November 2021. India showed a 351.6 per cent increase in affected accounts compared to 2019. In 2020 alone, around 19.18 million Indian users’ data was breached.
It wasn’t that long ago when there was alleged data leakage in the news which was clarified by the Ministry of Labour subsequently. Therefore, the concerns regarding possible data leakages and dangerous repercussions are very immediate.
To substantiate this stance, the Aarogya Setu Data Access And Knowledge Sharing Protocol, 2020 is a case in point. Without any statutory framework to govern the Aarogya Setu App, this protocol became the primary governance framework. However, it faced severe public criticism, and research also highlights serious concerns about informational privacy & mass surveillance.
The protocol fell considerably short of principles of legality, necessity and proportionality. Likewise, mass data collection portals like eShram & eNirman pose serious threats to privacy and the risk of monetizing sensitive personal data by different parties who gain access to it.
This makes it important now more than ever to bring social security systems operating digitally within the legislative framework with proper guidelines for operation, procedural safeguards to avoid data breaches, grievance redressal mechanisms for affected parties and monitoring mechanisms for proper implementation.
Without remedying these systemic issues, schemes will remain plastic cards that don’t translate into actual social security.