Centre likely to allow social security number portability

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The Centre is currently developing a mechanism that will allow social security number portability across the formal and informal sectors. This dynamic feature will benefit workers when they migrate from the formal sector to the informal one, according to a report.

The authorities are of the belief that the multiplicity of numbers needs to be rationalised and the Aadhaar-linked account number of an employee should remain constant across the employee’s life cycle across sectors (formal and informal) for availing the social security benefits, according to a report in Mint.

A government official added that the crowding of the universal account number (UAN) will lead to an adverse impact on the overall social security ecosystem and a one-time registration, one number and a whole work-cycle is what is needed and that has been tabled now, the report mentioned.

Another official added that such options of portability can give substantial data on employee attrition and the flow of workforce from one sector to another.

Reduction in administrative hassles

According to the report, this move could have numerous implications, the first being that once a person register’s with any social security body, it will remain valid across the entire work cycle. In addition to that, administrative hassles will come down and ease of doing business will get a much-needed boost.

The labour market is dynamic, people are switching from formal sector to informal sector and gig work depending on the market situation. Income and comfort and a flexible social security portable system will hence be beneficial for such workers the report mentioned.

“It is possible to have one social security number by allowing portability across organizations. Once and if this is finalized, the details will be shared,” Labour and employment secretary Apurva Chandra said.

As of now, employees registered with Employees’ Provident Fund Organisation (EPFO) and Employees’ State Insurance Corporation (ESIC) have unique numbers. The ministry of labour and employment headed by Bhupender Yadav on August 26 launched the e-Shram portal to build a comprehensive National Database of Unorganized Workers (NDUW) in the country and to register workers in the informal sector in a bid to extend various social security schemes. It is aimed at enhancing the monitoring and supervision of the government’s policies to make sure benefits reach the unorganised workers at the grass-root level.