Brief Context
Context Recently, the Union Ministry of Labour Employment has unveiled the Draft National Labour and Employment Policy, titled as Shram Shakti Niti 2025, aimed at reshaping India’s labour landscape. About the Shram Shakti Niti 2025 It aims to build a labour ecosystem that is inclusive, equitable, and resilient, ensuring dignity, protection, and opportunity for every worker, rooted in the civilizational ethos of śrama dharma—the moral value of work.
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Syllabus: GS2/Government Policy & Intervention
Context
- Recently, the Union Ministry of Labour & Employment has unveiled the Draft National Labour and Employment Policy, titled as Shram Shakti Niti 2025, aimed at reshaping India’s labour landscape.
- It is currently open for public feedback.
About the Shram Shakti Niti 2025
- It aims to build a labour ecosystem that is inclusive, equitable, and resilient, ensuring dignity, protection, and opportunity for every worker, rooted in the civilizational ethos of śrama dharma—the moral value of work.
Key Features of the Policy
- Universal and Portable Social Security: Policy aims to establish universal and portable social securityfor all workers—formal and informal alike.
- It envisions the creation of a Universal Social Security Account (USSA), achieved by integrating key welfare and insurance systems such as:
- Employees Provident Fund Organisation (EPFO);
- Employees State Insurance Corporation (ESIC);
- Pradhan Mantri Jan Arogya Yojana (PM-JAY);
- e-SHRAM portal;
- State welfare boards.
- It envisions the creation of a Universal Social Security Account (USSA), achieved by integrating key welfare and insurance systems such as:
- Skilling & Employment: The policy envisions a skill-employment continuum by converging flagship programs like Skill India, the National Apprenticeship Promotion Scheme, and Pradhan Mantri Kaushal Vikas Yojana.
- These will be supported by a digitally enhanced National Career Service–Digital Public Infrastructure (NCS-DPI), designed to connect talent with opportunity across India’s towns, cities, and MSME clusters.
- The Ministry of Labour & Employment aims to act as National Employment Facilitator and regulator enabling convergence among workers, employers, and training institutions.
- Monitoring and Accountability:
- Real-time dashboards;
- A Labour & Employment Policy Evaluation Index (LPEI) benchmarking State performance;
- An Annual National Labour Report to Parliament;
- Independent third-party reviews for external evaluation and accountability.
Implementation Structure (Three-tier)
- National Level: The National Labour and Employment Policy Implementation Council (NLPI), chaired by the Labour Minister.
- State Level: State Labour Missions to ensure contextual implementation.
- District Level: District Labour Resource Centres (DLRCs) as single-window hubs for registration, skilling, job matching, and grievance redressal.
Implementation Roadmap (Three Phases)
- Phase I (2025–27): Institutional setup and integration of social-security systems.
- Phase II (2027–30): Nationwide rollout of universal social security accounts, establishment of skill-credit systems, and district-level Employment Facilitation Cells.
- Phase III (Beyond 2030): Transition to paperless governance, adoption of predictive analytics, and continuous policy renewal.
Expected Outcomes
- Universal worker registration and social security portability;
- Near-zero workplace fatalities through AI-driven safety systems;
- 35% female labour-force participation by 2030 (current 24%);
- Reduction in informal employment via digital compliance and transparency;
- Creation of millions of green and decent jobs;
- Establishment of a One Nation Integrated Workforce ecosystem.
Policy Loopholes and Concerns
- Fragmentation of Implementation: Co-ordination and capacity gaps across states; Need inter-agency collaboration and adequate funding.
- Digital Divide and Accessibility: Digital literacy and internet access remain uneven, particularly among informal workers, women, and rural populations, as policy heavily relies on AI-driven systems and digital platforms.
- Gig and Platform Workers: Policy lacks specific mechanisms for enforcement, contribution models, and dispute resolution.
- Quality vs Quantity of Jobs: Policy lacks a clear roadmap for ensuring job quality alongside quantity.
- India needs to create nearly 8 million non-farm jobs annually to absorb its growing labour force.
- Monitoring and Accountability: Independent oversight mechanisms are not clearly defined. Without third-party audits and transparent reporting, tracking progress and ensuring accountability may be challenging.
- Aspirational Gender Inclusion: 35% female labour force participation by 2030 may remain aspirational without concrete strategies — such as childcare support, workplace safety, and flexible work arrangements.