Social Security Schemes affected by GST [salient features]

The Ministry of Labour & Employment, through its Labour Welfare Organizations across the country, implements welfare schemes relating to housing, education and health for beedi workers, mica mine workers, limestone & dolomite mine workers, iron ore manganese, chrome ore mine workers and cine workers. These schemes were earlier administered through 5 Welfare Cess and Welfare Funds under various Cess Acts of Parliament. Now, these cesses have been abolished/subsumed in GST and the welfare schemes have been retained with funding from the Consolidated Fund of India. Salient features of these welfare schemes: are as follows:

 (i) Revised Integrated Housing Scheme-2016: Subsidy of Rs.1,50,000 for construction of a new house is provided to the workers in three installments.

(ii) Education Scheme: Financial Assistance varying from Rs.250 to Rs.15,000 per year is provided to the wards of the workers studying in classes I to XII or pursuing non-professional and professional degree/graduate/post graduate courses.

(iii) Health Scheme: Health care facilities are provided to the workers and their dependents through 12 hospitals and 286 dispensaries under Labour Welfare Organizations across the country. In addition, reimbursement of expenditure for specialized treatment taken in Government recognized hospitals is also provided.

The above three schemes have been extended upto the financial year 2019-20. In addition to the above welfare schemes, the Central Government has recently converged the social security schemes of Aam Aadmi Bima Yojana (AABY) with Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) to provide life and disability coverage to the unorganised workers (in the age group 18-50 years)  depending upon their eligibility. PMJJBY gives coverage of Rs.2 lakhs on death at premium of Rs.330/- per annum.  PMSBY gives coverage of upto Rs.2 lakhs on accidental death and disability at premium of Rs.12 per annum.  Under the scheme, the Central Government contributes 50% of the premium for eligible unorganized workers and has requested the States to contribute the remaining 50% premium.

Ministry of Labour & Employment

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