Labour Card Benefits in Unorganised Sector

Posted On : August 16, 2022
Labour Card Benefits in Unorganised Sector
New policies are introduced on a regular basis by the concerned central or state governments. This time, a new mode of implementing such policies has been introduced for workers in the unorganised sector. Find out what a ‘shramik card’ is and the labour card benefits which it promises.
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Maids, construction labourers, electricians, plumbers…..there are so many people around us who are surviving without any job security. They can be fired at any minute and may also sometimes not be paid for the work already done. While termination during COVID-19 was the new normal, these people also suffered the pandemic without any savings. Basically, it's all good until they are working. But what happens in their old age? To answer all such discrepancies, the Ministry of Labour and Employment, Government of India brought the labour card (also termed as shramik card, e-labour card or e-shram card).


There are plethora of statutes in the name of labour laws that are functional in India. However, crores of people employed in the unorganised sector earning wages on a daily basis were not benefited under any of them. The plight of the unorganised sector remained unheard of until recently when creation of a database of such workers through labour card/ e-shram card was introduced by the central government. The idea is to have them listed with the government records just like a workman is under the industry payroll. This way, whenever some government scheme is introduced for the unorganised workers, it can directly benefit them without the need of separate registration campaigns with middle men taking unscrupulous advantages.


What is a Labour Card?

For those working in the unorganised sector as domestic workers, construction labourers, milkmen, carpenters, painters, plumbers, etc., the central and state governments have introduced the labour card/ e-shram card/ shramik card. Persons engaged in the listed professions have to register themselves to obtain a Universal Account Number (UAN). Then what is the benefit of shramik card? The labour card benefits allow the government to reach out to the unorganised sector through various employment and social welfare schemes. That way, benefits of labour card are numerous based on the industry/ category of the scheme one falls under.


Who is Eligible for Labour Card in India?

The authorities have specified the category of citizens eligible for benefits of labour card as provided below:

  • Aged between 16-59 years.
  • Should not be an income tax-payer.
  • Should not be a beneficiary of EPFO (Employees Provident Fund Organisation) or ESIC (Employees’ State Insurance Corporation)

Labour Card List: Eligible Occupations

  • Construction workers
  • Domestic workers
  • Watchman
  • Beedi workers
  • Carpenter
  • Welder
  • Plumber
  • Painter
  • Electrician
  • Other skilled labours

*There is a long list of occupations eligible for e-shram/ labour card benefits as per the government notice.


What are the Benefits of Labour Card?

Before jumping towards the labour card benefits, it is good to know the objective of such administrative tasks. Given below are the goals behind introducing the labour card/ shramik card in India:

  • Prepare database of unorganised sector for information of labour schemes
  • Employment opportunities for unorganised labour class
  • Free enrolment for the first year under PMSBY scheme (Pradhan Mantri Suraksha Bima Yojna)
  • Direct benefits through UAN in unprecedented contingencies like pandemic (labour card benefits in lockdown), etc.


Labour Card Benefits: Government Schemes

Social Security Welfare Schemes

Employment Schemes

Pradhan Mantri Shram Yogi Maan-Dhan Yojna (PM-SYM)

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY)

Deen Dayal Upadhyay Gramin Kaushalya Yojana (DDU-GKY)

National Pension Scheme (NPS)

Garib Kalyan Rozgar Yojana

Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY)

Deen Dayal Updhyaya Antyodaya Yojana (Day)

Pradhan Mantri Suraksha Bima Yojana (PMSBY)


Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY)

Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

Atal Pension Yojna

Prime Minister Employment Generation Programme (PMEGP)

Pradhan Mantri Gramin Awaas Yojana (PMAY-G)

National Social Assistance Programme (NSAP)


Ayushman Bharat-Pradhan Mantri Jan Arogya Yojna (AB-PMJAY)

Health Insurance Scheme for Weavers (HIS)

Pradhan Mantri Kisan Mandhan Yojana

National Safai Karamcharis Finance and Development Corporation (NSKFDC)

Self Employment Scheme for Rehabilitation of Manual Scavengers


E-Labour Card Benefits: Employment Schemes

  • Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA) providing employment opportunities in rural areas for upto 100 days per household.
  • Deen Dayal Upadhyay Gramin Kaushalya Yojana (DDU-GKY) for providing skills and relevant jobs for younger generations in the rural areas.
  • 125 days of employment opportunity per year in Kusum works, cattle sheds, poultry shed, goat sheds, etc. under the Garib Kalyan Rozgar Yojana.
  • Deen Dayal Updhyaya Antyodaya Yojana (Day) to enhance skills and self-business by way of financing and supporting the poor citizens.
  • PM SVANidhi, i.e. Prime Minister Street Vendor's AtmaNirbhar Nidhi scheme aiming at facilitating working capital loan upto Rs 10,000, incentivize regular payment and reward digital transactions.
  • A scheme that avails and promotes skill avenues, provides skilled training and certifications under the name of PMKVY (Pradhan Mantri Kaushal Vikas Yojana).
  • Prime Minister Employment Generation Programme (PMEGP) to provide easy financial assistance for the setup of budding enterprises.



Benefits of Labour Card: Social Security Welfare Schemes

  • Children’s education scholarship under Labour Card Scholarship Scheme for children of beedi, mine and cine workers.
  • Life insurance with benefits of annual life coverage under PMJJBY (Pradhan Mantri Jeevan Jyoti Yojna)
  • Health insurance benefits with life cover upto Rs 2 lakh and disability coverage under PMSBY (Pradhan Mantri Suraksha Bima Yojna)
  • Health insurance with benefits upto Rs 5 lakh under the PMABY (Pradhan Mantri Ayushman Bharat Yojna)
  • Old age protection through pension schemes like PMSYM (Pradhan Mantri Shram Yogi Maan-Dhan Yojna).
  • National Pension Scheme (NPS) - Pension scheme specifically for the benefit of traders and self-employed people.
  • Pension scheme named Atal Pension Yojana whereby beneficiaries get monthly pension after a certain age or accumulated amount to the nominees after the beneficiary's death.
  • Public Distribution System (PDS) for food security and distribution at affordable prices.
  • Financial assistance to the beneficiary upto Rs 1.2 lakh in plain areas and Rs 1.3 lakh in hilly areas under Pradhan Mantri Gramin Awaas Yojana (PMAY-G)
  • National Social Assistance Programme (NSAP) - Combined pension scheme by centre and state contribution for people with little or no source of income.
  • Specialised scheme for workers engaged in the weaving industry through Health Insurance Scheme for Weavers (HIS)
  • Pension scheme for small and marginal farmers as per Pradhan Mantri Kisan Mandhan Yojana
  • Financial assistance for sanitation activities and education to safai karamcharis, manual scavengers and their dependants under NSKFDC (National Safai Karamcharis Finance and Development Corporation)
  • Self Employment Scheme for Rehabilitation of Manual Scavengers whereby manual scavengers and their direct dependents are provided with skill training of their choice and a monthly stipend of a certain amount.


How do you get a Labour Card?

To obtain labour card, apply online by following the steps below:

  • Click Here and visit the official e-Shram website.
  • Prerequisites for labour card online registration are:
  • Aadhaar card
  • Aadhaar card linked mobile number (should be active)
  • Bank account number linked with Aadhaar card
  • Other personal and occupational details
  • Enter the basic details and a one-time-password will be shared on the applicant’s (unorganised workers) mobile number.
  • Follow the instructions and duly enter all the relevant details
  • After providing necessary information, verify and submit.
  • You will get the option to click for labour card download.
  • Take a print out and hand it over to the concerned unorganised sector’s worker.
  • If you want to check the video on steps to apply online for a labour card/ e-shram card, Click Here.

If the above steps are not proving to be of any help due to lack of suitable devices with the skilled labourer, one may visit the nearby CSC centres established by the government specifically for conducting registration of workers in the unorganised sector. If someone around you falls under the specific category and is still unable to obtain benefits of a labour card, contact labour lawyers who can help with the legal battle.


What is the Disadvantage of Shramik Card?

  • Unorganised sector workers having EPFO or ESIC enrolment are ineligible for e-labour card benefits.
  • People younger than 16 years and older than 59 years can not enjoy labour card benefits in lockdown or other emergencies.
  • Problem in getting a job (not in every case though).
  • Online operations for obtaining labour card benefits.
Written By:


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