India Ranks Second Globally as Social Protection Coverage Surges Past 64 Per Cent

New Delhi: India has emerged as one of the world’s leading countries in social protection, with coverage expanding sharply from 19 per cent in 2015 to 64.3 per cent in 2025, placing it second globally after China in extending social security benefits to its citizens.

The significant expansion has been driven by a steady increase in welfare schemes for the poor and a series of labour reforms introduced by the government this year, which are expected to further strengthen social security across sectors.

Reflecting this progress, India was conferred the prestigious International Social Security Association (ISSA) Award 2025 for “Outstanding Achievement in Social Security” at a ceremony held in Malaysia in October.

Continuing the reform momentum, Prime Minister Narendra Modi launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) on August 15, 2025, with a total outlay of Rs 99,446 crore. The scheme aims to incentivise the creation of over 3.5 crore jobs across the country over a two-year period, including 1.92 crore first-time entrants to the workforce.

So far, more than 2.35 lakh establishments have registered on the PMVBRY portal, with the number of first-time employee beneficiaries estimated to have crossed 20.7 lakh. The scheme places special emphasis on the manufacturing sector to support employment generation, enhance employability, and strengthen social security. Under PMVBRY, first-time employees receive one month’s wage, up to Rs 15,000, while employers are provided incentives for up to two years for creating additional jobs, with extended benefits of another two years for the manufacturing sector.

In a landmark legislative 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.

These codes are aimed at improving ease of doing business while expanding wage security, social protection, and workplace safety, particularly for women, migrant workers, and those in the gig and platform economy. The Code on Wages seeks to strengthen workers’ rights by introducing a uniform definition of wages and statutory minimum wages across sectors, thereby improving income security and reducing disputes.

The Industrial Relations Code simplifies regulations related to trade unions, employment conditions, and the investigation and settlement of industrial disputes. The Code on Social Security extends coverage to all categories of workers, including those in the unorganised, gig, and platform sectors, covering benefits related to life, health, maternity, and provident funds, while leveraging digital systems and facilitator-based compliance to improve efficiency. The Occupational Safety and Health Code focuses on ensuring safe working conditions while creating a business-friendly regulatory environment.

To further enhance social security delivery, the Employees’ Provident Fund Organisation (EPFO) has undertaken a major digital transformation, including auto-settlement of claims up to Rs 5 lakh, a centralised pension system, and facial authentication technology-enabled Universal Account Number activation to simplify processes for subscribers.

Similarly, benefits under the Employees’ State Insurance Corporation (ESIC) have been expanded, with its coverage extended to 713 districts from 688 earlier. The number of hospital beds under the ESIC scheme has increased three-fold to 87,715 in FY 2024–25.

ESIC has also introduced the Scheme to Promote Registration of Employers and Employees (SPREE 2025), offering a one-time opportunity for employers and workers who were previously left out of ESI coverage to register without facing retrospective liabilities or punitive action.

With inputs from IANS