Mentor’s Comment: The central government employs millions of regular and contract workers, including around 60 million in schemes like ICDS, NRHM, and mid-day meals. These workers—such as Anganwadi workers, helpers, ASHAs, and mid-day meal staff—support children, mothers, and nutrition. They connect communities with public health and help improve school enrollment and overall health.

Today’s editorial talks about the problems faced by Scheme-Based Workers (SBWs). This content is useful for GS Paper I (Women’s Issues) and GS Paper II (Social Justice).

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Let’s learn!

Why in the News?

The recent developments surrounding Scheme-Based Workers (SBWs)—particularly Anganwadi workers, ASHAs, and MDM workers—have reignited the debate on labour identity, social security, and worker rights in India.

What roles do they perform?

• Childcare and Nutrition Services: SBWs play a vital role in early childhood care by ensuring nutritional support, immunization, and preschool education. Eg: Anganwadi Workers (AWWs) under the ICDS scheme provide nutrition and basic health services to children and lactating mothers.
• Public Health Outreach: They serve as a crucial link between the public health system and rural communities, improving health awareness and access. Eg: ASHAs under the National Rural Health Mission (NRHM) assist in maternal care, vaccination drives, and promote institutional deliveries.
• Educational and Nutritional Support in Schools: They help enhance school enrollment and retention by providing mid-day meals, which also address child malnutrition. Eg: Mid-Day Meal Workers (MDMWs) prepare and distribute meals in schools under the Mid-Day Meal Scheme.

What challenges do SBWs face in gaining formal recognition and benefits?

• Lack of Worker Status: SBWs are often classified as “volunteers” or “honorary workers” rather than formal employees, denying them recognition as government workers. Eg: The Supreme Court in State of Karnataka vs Ameerbi (2006) ruled that Anganwadi workers are not state employees as they don’t hold statutory posts.
• Absence of Minimum Wages: Most SBWs receive honorariums instead of wages, which are far below minimum wage standards. Eg: Anganwadi workers and helpers across states earn as low as ₹4,500–₹9,000 per month, without alignment to state minimum wage norms.
• No Social Security Benefits: SBWs are denied access to pensions, provident fund, maternity benefits, and health insurance. Eg: Despite working in public health, ASHAs are not covered under schemes like EPFO or ESI.
• Policy Delay and Avoidance: Governments often cite financial burden or the need for long-term planning to delay regularisation. Eg: In 2016, the Labour Minister told Parliament that there’s no fixed timeline to implement ILC recommendations for SBWs.
• Suppression of Collective Action: SBWs’ strikes are often met with state repression or legal barriers. Eg: Maharashtra invoked the Essential Services Maintenance Act (ESMA) in 2017 to curb Anganwadi workers’ right to strike.

Why is the government reluctant to regularise SBWs?

• Financial Burden: Regularising SBWs would significantly increase the government’s salary and welfare expenditure, making it fiscally unsustainable. Eg: The central government employs over 60 lakh SBWs, and converting them to regular employees would involve massive budgetary allocations for wages and benefits.
• Policy Ambiguity: Successive governments delay decisions by citing the need for long-term policy formulation without committing to a timeline. Eg: In 2016, the Labour Minister told the Rajya Sabha that implementing Indian Labour Conference (ILC) recommendations requires indefinite planning.
• Privatisation Push: The government aims to reduce its role in welfare delivery by promoting public-private partnerships, weakening the case for regularisation. Eg: There have been attempts to privatise the Integrated Child Development Services (ICDS), directly affecting the employment security of Anganwadi workers.

What are the policy implications of granting SBWs formal employee status?

• Fiscal Burden: Recognising SBWs as formal employees would significantly increase the government’s expenditure on salaries, pensions, and social security. Eg: The central government is concerned about cost implications due to the growing number of SBWs (nearly 6 million), especially as population-linked schemes expand.
• Policy Reorientation: Granting formal status would require new frameworks for recruitment, training, service conditions, and grievance redressal. Eg: The Gujarat High Court in 2024 directed the State and Centre to create a joint policy to regularise Anganwadi workers as Class III and IV employees.
• Precedent for Other Informal Workers: Regularising SBWs could set a precedent for other informal or gig workers demanding similar recognition and protections. Eg: Like SBWs, gig workers (e.g., delivery partners) are also fighting for worker status and social security rights in courts and labour forums.

Way forward: 

• Enact Clear Policies: Governments should promptly create and implement policies to grant SBWs formal worker status with fair wages and social security benefits.
• Strengthen Monitoring: Improve enforcement by regional bodies to ensure timely wage revisions, labour rights protection, and prevent exploitation of SBWs.

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