Executive

Summary

S ocieties need safety nets to catch those in need because of unlucky opening balances, past
mistakes, or hard times. However, in its current state, our employer-linked social security system
suffers from insufficient coverage of the worker population with only 7.17 lac (1.1%) of 6.3 crore
enterprises and only 7 crore (11.8%) of our 59 crore labour force making monthly social security
contributions. Paradoxically, 54% of India’s regular wage/salaried workforce does not receive social
security benefits. A significant 57% of women and 53% of men are not eligible for social security
benefits. Moreover, self-employed individuals that constitute 57.3% of India’s labour, and 22% of casual
labourers are excluded from the social security safety net. Therefore, over 79% of India’s labour force,
or 46.6 crore people, who work in non-permanent, non-salary jobs fall beyond the purview of this social
security net.

The current social security system thus marked by limited workforce coverage, inadequate funding,
fragmented protection mechanisms, and an overreliance on traditional formal employer-linked and
government-dependent models severely underserves the needs of the workforce. It is a fragile safety
net that leaves a significant section of the workforce vulnerable to economic uncertainties, health
risks, and retirement insecurity. This situation necessitates a comprehensive and innovative
reimagining of how social security is conceptualised and implemented.

This report takes a hard look at the problems associated with India’s social security system and
proposes foundational principles that should form the basis of a reimagined, universal and portable
social security framework, that offers flexibility across employment types, and provides simplified
contribution and management mechanisms. One of the key recommendations is to build a
technology-enabled transparent system.

To that end, this paper provides the blueprint and design for a radical new system, called the Multi-
Contributor Social Security (MCSS) system, which aims to provide a more inclusive, flexible, and robust
social protection mechanism that uses a digital stack to solve the problems of coverage and funding
that plague social security in India. It seeks to implement a technology-driven, user-centric approach.
The aim is to provide comprehensive social security protection for a diverse workforce with increased
economic security for workers, flexible contribution models, reduced vulnerability for informal and gig
economy workers, and a more efficient and adaptable social security infrastructure. The paper also
provides a carefully designed approach for transitioning mandatory employer schemes like ESI and
EPFO to the MCSS system, ensuring minimal disruption to existing benefits, smooth transition for
employers and employees, preservation of accumulated social security entitlements, and enhanced
transparency and accessibility.

By embracing flexibility and technological integration, India can create a more resilient, inclusive and
comprehensive social security ecosystem.
 Table of Contents
Executive Summary

00
Introduction

02
1. State of Employment
1.1 Employment Indicators 04
1.2 Quarterly Status of Employment Indicators for the 15-29 age group
1.3 Quarterly Status of Employment Indicators for 15 years and above 05

06
2. Formal Job Creation
• Formal Job Creation under EPFO 07
• Formal Job Creation by Top 5 States (in Lakhs) 08
• Y-o-Y formal job growth percentage of the top 5 states
• Purchasing Managers’ Index 09

11
3. Social Security System of India
3.1 Current Employer-Linked Social Security Schemes
3.1.1 Employees’ Provident Fund Organisation (EPFO)
3.1.1.1 Rate of Contribution 12
3.1.1.2 Administrative Charges
3.1.1.3 PF Contribution (2019-23) 13
3.1.1.4 Administrative Revenue by Admin/Inspection Charges
3.1.1.5 EPFO Excesses in Administration and Inspection Charges 14
3.1.2 Employees’ State Insurance Corporation (ESIC) 15
4. Challenges of Social Security Schemes
5. Proposed Changes 19

21
4. Recommendations
1. Efficiency
2. Competition
3. Choice
4. Effectiveness
5. Sustainability
6. Governance
7. Flexibility
8. Integration
9. Digitization
10. Systematic Withdrawal Plan
11. Simplified Enrollment
12. Administration Vs. Regulation
13. Alternative Sources
25
5. The Multi-Contributor Social Security (MCSS) system
5.1 Components
5.2 Income Tax benefits 26
5.3 Thresholds for withdrawals
5.4 Searchability and discoverability
5.5 Interoperability and transferability
5.6 Miscellaneous features 27
5.7 Need for a middleware
5.8 Data Security and Privacy
5.9 Regulators 28
5.10 Legal Changes
5.11 Benefits 29

31
6. Conclusion

32
7. Petition for Change

8. Tables
Table 1: State wise Payroll Analysis 33
Formal Job Creation
Table 2: Formal Job Growth in Industries 34

35
9.Appendix to MCSS model
How to do Stock and Flow Migration of mandatory
employer schemes like ESI and EPFO to the MCSS system?
Steps for Stock and Flow Migration of ESI and EPFO to MCSS 36
Finer Details

44
10. References
Intoduction
As we shall see in this whitepaper, the current social security system in India faces a lot of challenges.
A majority of India's workforce remains trapped in informal employment, leaving them vulnerable
to economic uncertainties, health risks, and retirement insecurity. They have little to no social
security protection to fall back on. The rise of gig economy, platform-based work, and non-traditional
employment models further exposes the limitations of existing social security systems. These are
newer models of employment that require a reimagining of social security systems.

This whitepaper offers a comprehensive analysis of India's social security landscape. In sections 1
and 2, it examines the state of employment and job creation in India. Section 3 analyses the existing
social security systems and their problems. It takes a hard look at some of the employer-linked
social security schemes and the pressing need for transformative reforms. Section 4 proposes some
recommendations around principles that need to be the foundation of the reimagined social security
framework, and some concrete proposals to introduce changes in the existing system itself.

In the next section, section 5, this whitepaper presents the design and other important details of a
forward-looking multi-contributor social security system (MCSS) that incorporates the principles
enunciated in the recommendations. The aim is to provide a blueprint for a more inclusive, flexible, and
robust social protection mechanism that uses a digital stack to solve the problems of coverage and
funding that plague social security in India.

The appendix maps out the detailed steps to do a stock and flow migration of the mandatory
employer schemes like ESI and EPFO to the MCSS system. ESI and EPFO have been discussed for now,
but the same steps can be replicated for other government-driven and employer-linked social security
schemes.

0
1
1. State of
Employment

India, with a population of 145 crore, has India’s expanding populace presents two
invaluable assets: a substantial consumer
surpassed China to become the world’s most market with the potential to grow ninefold from
populous country. This demographic its current valuation of US$18.5 trillion and a
milestone bestows potential benefits upon India, significant demographic dividend. This vast
particularly in light of the global trend toward potential market, coupled with a large
declining birth rates and a constricted labor working-age (15-64) population of nearly 100
market. The country is viewed as a youthful crore individuals by 2047, forecasts tremendous
economy with significant growth potential. This opportunities for the future of labour.
growth is underpinned by India’s sizable, vibrant,
and youthful population, with 65% of the populace Upon analyzing the data, it is evident that India’s
under 35. In contrast to China, which confronts working-age population is projected to reach from
demographic challenges such as a declining 73.5 crore (61%) in 2011 to 98.9 crore (65%) by
workforce and an aging population, India currently 2036. Nonetheless, it is anticipated to
boasts a demographic dividend, with 60 crore represent a reduced proportion of the country’s
individuals aged between 18 and 35. total population compared to previous years.

Proportion (%) of working-age population

2
In 2011, the working-age population comprised However, the issue of employment has
61% of the total population, which exhibited long been a paramount concern for Indian
consistent growth through 2016 and 2021. policymakers, and over time, it has grown
Projections indicate a further increase, increasingly intricate. The country’s
reaching 65% in 2031. However, by 2036, though considerable literacy, education, and vocational
the share of India’s working-age population will skills advancement is one contributing factor.
remian around 65% of the total population, it will As a result, the workforce now seeks not just
be impacted by concurrent factors such as a any job but meaningful employment, offering
decrease in the proportion of the younger improved work conditions, stable positions, and
population, and an impending rise in the better compensation.
percentage of India's elderly population.
Regrettably, creating such opportunities has
not kept pace with the escalating number of job
seekers. Furthermore, the aspirations of the
Statistical evidence illustrates labour force have surged alongside the overall
that individuals over 60 are national development, leading to heightened
expectations. The uneven growth of the
projected to constitute close to industrial and service sectors across different
15% of the total population by regions and states has disrupted the balance
between job openings and the availability of
2036, a notable increase from labour at local levels. This imbalance has been
the 8.4% recorded in 2011. perpetuated by a conspicuous divergence in
the distribution of employment across various
sectors, resulting in an expanding income gap
between agriculture and non-agricultural
The potential economic impact of India’s sectors. In addition, the allure of government
expanding population on its GDP growth is jobs has soared due to the associated job
contingent upon several factors, most notably security, guaranteed salaries, and deserved
the population expansion rate, the population’s reputation. These factors collectively
overall size, and the proportion of working-age accentuate the formidable challenges of
individuals capable of securing gainful employment within the Indian context.
employment. This youthful demographic
fortifies India’s competitive advantage in the
services and manufacturing sectors and drives
discretionary spending, contributing
significantly to overall economic activity.

3
1.1 Employment Indicators

1.2 Quarterly Status of Employment Indicators for the 15-29 age group

4
1.3 Quarterly Status of Employment Indicators for 15 years and above

** LFPR - Labour Force Participation Rate | WPR - Worker Population Ratio | UR - Unemployment Rate

The recent quarterly Periodic Labour Force (WPR). In the same time frame, the LFPR grew
Survey (PLFS) indicates a modest increase in from 40.2% to 40.7% for the 15-29 age group
the unemployment rate during Q4 of FY24 and from 49.9% to 50.2% for those aged 15 and
compared to the preceding quarter for both the above. Similarly, the WPR increased from 33.5%
15-29 and 15-year-old and above age brackets. to 33.8% for the 15-29 age group and from 46.6%
Specifically, the unemployment rate rose from to 46.9% for individuals aged 15 and above.
16.5% to 17% for individuals aged 15-29 and
from 6.5% to 6.7% for those aged 15 and above.
This uptick in the unemployment rate coincided
with an increase in the Labor Force Participation
Rate (LFPR) and Workforce Population Ratio

5
2. Formal
Job Creation

To evaluate the formal employment sector and

the 1.10 lakh state government employees and
the 47 Lakh central government employees, as
increase in job creation, as well as the formation the EFPO data does not include the provident
of the current workforce, net EPFO enrollment funds that government employees contribute.
and new ESIC subscribers are taken into ac- Additionally, the number of ESIC members who
count. According to data from the EPFO dash- paid contributions as of March 31, 2022, is 2.78
board, 7.7 crore members contributed monthly crore separately. To eliminate any overlap, we
to the EPF till the previous year. The number of estimate that a quarter of ESIC members are
contributing establishments is 7.6 lakh. also enrolled in the EPFO, resulting in 2.08 crore
unique ESIC members.
To determine the total number of people
working in the formal sector, we must consider

Percentage distribution of workers across sectors

RESTAURANT

*Table 1

6
 the scope of social security coverage.
An estimated 11.4 crore people Notably, approximately 0.11 crore members
in India are employed in the have disaffiliated and subsequently
reestablished their association with EPFO.
formal sector, comprising
7.7 crore EPFO subscribers, 2.08
crore ESIC unique subscribers,
and 1.6 crore government
employees.
As previously stated, 45.8% of the 59 crore
people in the labour force are informal labourers
in agriculture. As a result, of the remaining 54.2%
(31.9 crore) of individuals in the non-agriculture
sector, 19.2% (11.4 crore) are part of the formal
sector.

The number of formal job creation under

EPFO saw a notable 11.4% increase, from 1.38
crore in 2022-2023 to 1.54 crore in 2023-2024.
Many EPFO members have transferred their
accumulated funds when transitioning between
employers rather than seeking a final settlement.
This practice is geared towards ensuring
sustained financial security and broadening

Formal Job Creation under EPFO

Year
*Table 2 7
 Formal Job Creation by Top 5 States (in Lakhs)

Y-o-Y formal job growth percentage of the top 5 states

In the fiscal year of 2024, states such as Gujarat Pradesh, Uttarakhand, and Rajasthan have
and Karnataka demonstrated remarkable witnessed a formal job creation growth
growth rates of around 15%, marking the region’s percentage of nearly 19% (A detailed analysis of
highest formal job creation rates. This growth payroll data has been provided in Table 1, which
can be attributed to the increasing formalization can be found in the section “Tables”.).
of these state economies. Moreover,
Regarding industry distribution, the number of
Maharashtra, Tamil Nadu, and Haryana also
members employed in fields such as expert
experienced noteworthy increases in formal
services, building and construction, electrical,
employment, with growth rates of 10%, 8%, and
mechanical, general engineering products, and
6%, respectively. Additionally, states like Uttar
other miscellaneous sectors increased
8
(Table 2, which can be found in the section rise in job creation within the services
“Tables”). sector, attributable to the combination of
escalating business activity, robust demand
Furthermore, there is a notable upsurge in job from both domestic and international
creation in both the manufacturing and services customers, and an upturn in export sales.
sectors. The PMI Manufacturing employment
sub-index indicates a surge in employment
opportunities within the manufacturing
sector, bolstered by increased export orders,
expanded domestic production, and growth in
international sales. Correspondingly, the PMI
Services sub-index demonstrates a marked

Purchasing Managers’ Index

9
Despite rapid economic advancement, India continues to grapple with enduring challenges such as
youth unemployment, underemployment, and substandard working conditions. The formalization of
the expanding workforce remains a formidable obstacle. Notably, the window of opportunity presented
by India’s demographic dividend, which took root in the 1970s, may only remain accessible until
approximately 2040.

The insufficient growth of employment opportunities, a pronounced shift towards skill-based

occupations, and a surge in self-employment and informal labor significantly impede the formalization
process. As the demand for a skilled workforce escalates, income disparities proportionally increase.
Furthermore, the industrial and service sectors, reliant on skilled labor, counteract India’s historical
forte in unskilled labor. The rapid evolution of technology and the onset of digital transformation have
accentuated the widening skills gap, necessitating deliberate attention to harness the potential
afforded by India’s demographic dividend.

10
3. Social Security
System of India

India’s social security system encompasses sickness benefits, health protection, medical care,
various schemes, policies, programs, and old age benefits, invalidity/disability benefits,
pertinent laws and regulations. It includes and survivors’ benefits. Well-crafted social
employer-linked social security mandates such security systems are instrumental in effecting
as pension schemes and health insurance. enduring impacts by reducing disparities,
According to the World Social Protection Report fostering resilience, and breaking the cycle
2020-22, the International Labour Organization of intergenerational poverty. Social protection
(ILO) defines social protection as a framework schemes are typically categorized based on
of policies and programs to mitigate poverty, financing into contributory, non-contributory,
vulnerability, and social exclusion throughout an and privately funded schemes. In the context
individual’s life cycle. This social protection of employment-related social security schemes,
framework comprises nine primary areas: employers may stipulate that employees obtain
child and family benefits, maternity protection, insurance against specific risks as a condition of
unemployment support, employment injury their employment.
benefits,

3.1 Current Employer-Linked Social Security Schemes

3.1.1 Employees’ Provident Fund Organisation (EPFO)
The inception of social security protection in India In 1947, during the Asian Regional Conference of
can be attributed to the enactment of the initial the International Labour Organisation (ILO), India
Provident Fund Act in 1925. At its onset, this advocated adopting a contributory provident
legislation was confined to overseeing specific fund scheme instead of a pension or gratuity
private entities to extend social security privileges payment system. This decision was motivated by
to industrial labourers upon their retirement or the financial and administrative constraints
to their beneficiaries in the event of a premature the newly sovereign nation faced. Furthermore,
demise. Following thorough discussions implementing a gratuity scheme was hindered by
since 1929, there was a collective consensus to the relatively small amount that could be granted
incorporate industrial laborers in the Provident to workers or their dependents, as the workers
Fund scheme, accompanied by provisions themselves would not contribute to the fund. As a
allowing them the autonomy to opt-out. These result, a compulsory contributory provident fund,
regulations were disseminated to employers in involving contributions from both workers and
1945 to promote the integration of Provident employers, was deemed more suitable for
Funds in industrial institutions. Significantly, some ensuring workforce protection in India.
pioneering employers proactively established
voluntary Provident Funds. 11
Following the recommendations of the Asian Regional Conference, the matter was deliberated at the
10th session of the Indian Labour Conference held in 1948, leading to a consensus on the necessity of
implementing a statutory provident fund scheme for industrial workers. Based on various ordinances,
the Employees’ Provident Funds and Miscellaneous Provisions Act was enacted in stages and
enforced by November 1, 1952.

The contribution rate, which excludes administrative charges and contributions to the Employee’s
Deposit Linked Insurance (EDLI) Scheme, currently stands at 12% of the wages for both the employer
and the employee within the Employee Provident Fund (EPF) scheme. The employer assumes
responsibility for covering all administrative charges for EPF and contributions under the
EDLI Scheme.

3.1.1.1 Rate of Contribution

(*) w.e.f. 01.06.2018

3.1.1.2 Administrative Charges

12
3.1.1.3 PF Contribution (2019-23)

*Unaudited

3.1.1.4 Administrative Revenue by Admin/Inspection Charges

*Unaudited
**7Q. Interest payable by the employer - The employer shall be liable to pay simple interest at twelve percent per annum or at such higher
rate as may be specified in the Scheme on any amount due from him under this Act from the date on which the amount has become so
due till the date of its actual payment: Provided that higher rate of interest specified in the Scheme shall not exceed the lending rate of
interest charged by any scheduled bank.

13
3.1.1.5 EPFO Excesses
in Administration and
Inspection Charges

The expenditure in administering the 1.06.2018 onwards, 0.50% of the total pay on
Employees’ Provident Fund, as provided in para which contributions are payable. The minimum
54 of the EPF Scheme,1952, is met from the levy sum is ₹75/- per month for every non-functional
of Administrative and Inspection charges at the establishment with no contributory member and
prescribed rate from the employers of ₹500/- per month for other establishments.
un-exempted and exempted establishments,
respectively. The excesses created due to these The Income and Expenditure of Administration
administration and inspection charges could be Account for the year 2021-22 relating to the
better utilised for social security, and could Employees’ Provident Fund Scheme, 1952 is as
indeed be termed wasteful. They also add to the follows:
operational expenses of companies, which is
detrimental to the growth of the social security
infrastructure.

*Unaudited

14
 Employees’
3.1.2 State Insurance
Corporation
(ESIC)
The Employees State Insurance Scheme (ESIS)
was established in 1952 to provide a social
security safety net for formal sector workers
meeting specific criteria for enrollment, wage
levels, and power utilization. It is imperative to
note that ESIS, India’s largest health insurance
program, operates on compulsory payroll
deductions and extends coverage to all
employees earning up to ₹21,000 per month
within organizations employing 10 or more
individuals. As of 2019, the contribution rate
has been reduced from 6.5% to 4%, with the
employer and employee sharing 3.25% and
0.75% respectively. This scheme aims to
aggregate health risks and is sustained by
collecting premiums from employees,
employers, and government contributions
based on a fixed percentage of wages. ESIS
delivers healthcare services via its network of
hospitals and dispensaries and also
encompasses private hospitals to address
needs beyond its infrastructure.

4. Challenges of Social Security Schemes

1. Societies need safety nets to catch those in raising whether individuals are better off
investing independently or through private
need because of unlucky opening balances, past corporations to construct a retirement fund.
mistakes, or hard times. However, in its
current state, our employer-linked social security
system needs more coverage of the worker
population. It is ridden with structural
inefficiencies and is severely inadequate to
provide for the needs of an individual. Moreover,
as the RoI on EPF investments is relatively low,
only 7.17 lac (1.15%) of 6.3 Crore enterprises
and 7 crore (11.8%) of our 59 Crore labour force
make monthly social security contributions. The
EPF invests mostly in fixed-income assets, with
only a small portion in domestic indices, which
deliver modest returns to scheme members and
hardly outpace inflation. There is no set portfolio
allocation based on the individual’s needs, 15
Paradoxically, 54% of India’s regular wage/ Though pension systems like the Atal Pension
salaried workforce does not receive social Yojana are becoming increasingly popular,
security benefits. A significant 57% of women massive reforms are required to make social
and 53% of men are not eligible for social security accessible and affordable for all
security benefits. Furthermore, self-employed Indians.
individuals constitute 57.3% of India’s labour,
and 22% of casual labourers are excluded from The existing labor laws mandate
the social security safety net. Therefore, more employers to confiscate a considerable portion
than 79% of India’s labour force, or 46.6 Crore of the salary of employees earning low wages
people, are working in non-permanent, non-sala- monthly and hand it over to public sector
ry jobs and are beyond the purview of this social monopolies such as EPFO. This high gross
security net. Although the Social Security Code salary deduction feels particularly severe at
2020 attempts to incorporate the unorganized lower wages, and the most significant pushback
sector, gig workers, contract workers, interstate for higher net salaries comes from employees
migrants, and platform workers, there is still a who often have informal employment choices.
long way to go until they are fully included under The rationale for protecting employees from
these schemes, and implementation remains to themselves is at the core of the enormous
be seen. Nonetheless, social security might be difference between gross wages and take-home
viewed as a good development, representing the salaries. EPFO requires a mandatory 12%
beginning of a more inclusive policy. contribution from both employees and
employers. In a cost-to-company world, this
mandatory contribution does not increase gross
salary but comes out of it, reducing net salary.

Bonus - 8.33% is an annual payout, and 0.69% is a monthly payout

LWF - Employee ₹20, Employer ₹40 Yearly Contribution, varies state to state
* A fresh employee earning above the wage ceiling limit of ₹21000 can opt out of PF and other social security
contributions if he/she wishes not to be covered under the social security net.
** The net salary has been calculated using representative examples of ₹21000 and ₹55000.

16
Nothing is wrong with compulsory savings,
but setting them at a level much higher than 3. The COVID-19 pandemic has brought to the
the savings rate for that income bracket is an fore the deficiencies within the ESIS and the ESIC
irrationality that breeds informal employment. system. This underscores the essentiality of
The household savings rate as a percentage of implementing reformation focused on outcome
GDP was 12% in 2020-21 and 5% in 2022-23, assessment, enhanced governance, and
hitting a 47-year low. The lack of discretionary increased competitiveness. Regrettably, the
purchasing power directly impacts economic Employee State Insurance Scheme (ESIS),
growth as it impairs the creation of a virtuous India’s most affluent health system with
cycle of growth. ₹80,000 crore in cash reserves and coverage for
13 crore individuals, was notably absent in its
2. The primary objective of contributory social response. Furthermore, the long-standing
mismanagement, substandard quality, and
security systems is to facilitate the maintenance
of individual consumption levels throughout weak governance of ESIC underscore a
their lives by promoting savings during history of underperformance, resulting in a
their most economically productive years. This disheartening absence of positive outcomes.
framework aims to provide a source of income
or credit during decreased productivity, such
as retirement, unemployment, or illness. The
4. ESIS is currently grappling with
governance-related deficiencies – specifically, a
COVID-19 pandemic underscored significant dearth of vision, objectives, and strategic
deficiencies in India’s social security policies, direction. Established in 1948 through an Act of
particularly for individuals in the informal sector, Parliament, ESIS is under the administrative
constituting most of the populace. The disparity purview of the Employee State Insurance
between formal and informal sector employees Corporation (ESIC), an autonomous entity within
became evident during the lockdown. the Indian government. The ESIC chairman is the
Union minister of labour, and an executive body,
Notably, India’s principal akin to a Board comprising 18 members
representing state governments, employers,
social security programs, EPF trade unions, and medical professionals out of a
and ESIS, extend coverage total of 59 representatives, convenes to
deliberate on policy matters. However, owing to
to merely 19% of the total its large composition, this committee
workforce, with employers encounters significant impediments in
facilitating substantive discourse, rendering
mandated to deduct 35% from decisions, and exercising efficient oversight.
employees’ salaries for EPF
contributions when employing
over 20 workers.
5. ESIC currently lacks a modern information
and risk management architecture. It does not
transparently prioritise enhanced customer
Despite EPF amassing a fund of 12 lakh Crore experience, grievance redressal, and improved
with 6.5 crore contributors, 60% of the accounts health outcomes. It is imperative for ESIC to
remain inactive. Moreover, ESIS requires establish explicit targets and regularly report
employers with over 10 employees to enforce a transparently on the progress towards these
mandatory 4% salary deduction for employees objectives. Specifically, while financial
earning below 21,000 per month. The scheme’s protection is a key objective of health insurance,
claims-to-settlement ratio is notably low, ESIC has yet to assess or comprehend the
prompting widespread discontent despite its extent of out-of-pocket expenses borne by ESIS
annual profits at 10000 crores. Accordingly, the beneficiaries.
issue seems to stem not from a dearth of funds
but rather from inadequate policies and
governance within these institutions.
17
6. ESIC, in collaboration with the ESIS departments 7. Social security in India leaves out unorganised
of corresponding state governments, operates its sector workers. It leaves out gig workers and
own network of medical service providers and platform workers. Even within the organised sector,
facilitates outsourced tertiary care in private about 54% lack social security benefits, according to
hospitals. This framework positions ESIC as both a the PLFS report, which is basically informal
financial backer and a healthcare service provider, employment. Overall, more than 80% of India’s
embodying fundamental elements of a “Managed workforce is engaged in informal employment, which
Care” model. However, the absence of competitive means they lack any sort of social security safety net.
forces inherent in single-payer national models such Even the National Pension System (NPS), which is
as ESICs presents a potential risk of benefit denial. theoretically open to all, has an abysmal coverage of
only about 6.2 crore subscribers (which is
8. Being either employer-based or funded by the approximately 10% of the workforce), as of March
2023. The Employee State Insurance Corporation
government makes social security in India suffer
(ESIC) was recently in the news for considering an
from a financing problem. The NPS and the Old
extension of its coverage to unorganised and gig
Pension System (OPS), a Defined Benefits system
sector workers. On July 24, 2023, Rajasthan became
with no employee contributions, are financially
the first Indian state to pass legislation aimed at
burdensome for the government, due to which we
providing social security benefits to gig workers.
keep seeing pensions crop up as a contentious
These are efforts by governments to expand social
financial problem. The NPS, which is a Defined
security beyond the formal sector. But given the
Contribution system, introduced in 2004, was an
financial constraints and the piecemeal approach
attempt to reduce this financial burden on the
towards widening the net, this won’t be sufficient to
government to some extent. The current Unified
expand the coverage of our social security system in
Pension Scheme (UPS) which was introduced
its current form.
recently and will be effective from April 1, 2025. It
incorporates elements of the OPS while introducing
a contributory model. There are various other 9. A significant issue is that the current
government schemes aimed at providing social government systems managing various social
security, like schemes for unemployment security schemes are outdated and rigid. These
allowances, insurance, and other benefits. All of monolithic systems are slow-moving and lack
these strain government resources, with pensions scalability, customisation and agility. They have been
consuming around 9% of the central government’s known to cause problems even with routine tasks
revenue and 19% of its expenditure. Therefore, there such as withdrawals and transfers. These software
is an urgent need to reimagine our social security systems were developed without adequate
system to make it more broad-based in its coverage consideration of their architecture, design and
and open to contribution by multiple overall structure. While we include employers in the
sources. provision of social security, the systems themselves
are administered by governments, because when it
comes to social security, we cannot think beyond the
10. Ajay Shah and Vijay Kelkar, in their book, government.
“In Service of the Republic: The Art and Science of
Economic Policy”, speak of the need to evaluate the
necessity of any governmental intervention on the
touchstone of market failures, like externalities,
public goods, information asymmetry, market
power, incomplete markets, income and wealth
inequality, etc. And hence we need to check if there is The National Payments Corporation of India (NPCI)
any need to restrict social security just to the EPFO. A – a non-profit organisation, is an umbrella
user should be able to leverage all options of organisation that facilitates services like UPI
creating his social security net, and tap all Payment, Bharat Bill Pay, RuPay Card, FASTag, NACH,
sources. The aim should be to make it easier for etc. owned by a consortium of major banks, it has
people to reach out to each other and explore various built this digital public infrastructure at a very fast
social security options and we need to use the pace. Similarly, consider the Indian Software Product
agility of private sector entities to build such a Industry Round Table (iSPIRT), another non-profit
system. We have a very good precedent of such a col- organisation which spearheaded the set of open
laboration in the robust UPI network of India where APIs known as the India Stack, which undergirds the
private entities have built on top of the UPI network digital public infrastructure consisting of Aadhaar,
to provide myriad options to users. UPI, etc.
18
5. Proposed
Changes

As seen in the preceding sections, social much like the internet… Unified ledgers are a
security in India faces two main problems of promising vehicle to turn this vision into reality.”
inadequate financing and limited coverage, apart Cutting-edge digital technology will need to be
from other problems like administrative cost, leveraged to create such systems.
delays, and legacy-oriented, old systems which
are not very efficient, scalable or customisable.
There is an urgent need to widen the social In this spirit, this whitepaper proposes two main
security net, and to find alternative avenues of types of reforms:
financing.
• Some immediate reforms that can be carried
The imperative to reimagine social security out in the existing system itself to make it more
policies becomes increasingly evident as efficient and effective, and less onerous for the
traditional family-based social security stakeholders involved. These reforms will align
structures wane due to modernisation and with some principles that need to be
shifting demographics. India's standing in the followed for better functioning of the social
2022 Global Pension Index dropped from 41st security framework. This also recognises that
out of 44 countries to 45th out of 47 countries in while a larger, comprehensive reform of the
2023, indicative of significant inadequacies and system, which involves migration to a
shortcomings within the system's sustainability better platform, will take time, in the meantime,
and adequacy. these short term, immediate reforms will help
strengthen the existing system till we migrate
We need to design a system that gives users to the new proposed ecosystem.
many options, the ability to choose the best
option and switch if required, and to customise • Over the longer term, creation of a
their social security basket. The problems of redesigned, comprehensive new system, called
reach and financing in a social security system the Multi-Contributor Social Security (MCSS)
will require such innovative thinking for system, the details of which will be detailed in
resolution. The idea of decentralising and the sections to come. This whitepaper also lays
democratising such systems gives more out the steps by which this migration will be
control to the user by way of providing more done.
options. The world is moving towards more open
and interoperable systems. In a recent Bank for
International Settlements (BIS) working paper,
Nandan Nilekani and others propose the
“concept of the "Finternet" as a vision for the
future financial system: multiple financial
ecosystems interconnected with each other –
19
In the short term, on a broad level, the changes propose
the following three design reforms for the mandatory
social security deductions to empower employee choice:

Whether to make a 12%

employee contribution to a
provident fund or opt out of it

Whether to pay a 12%

employer contribution to the
Employee Pension Scheme
(EPS) or an individual account
opened with the National
Pension Scheme (NPS)

Allow employees the choice of

paying their contributions to
EPS or to purchase insurance
from any IRDA-regulated
insurance company

20
4. Recommendations
After having considered the problems associated with the social security framework as it exists now in
India, let’s look at the recommendations that this whitepaper proposes to resolve these deficiencies. These
recommendations have been aligned with some principles that they are supposed to espouse, providing a
rationale for the recommendations.

1. Efficiency employees to direct their ESI contribution to the

ESI corporation or to procure insurance from any
EPFO, with its expensive charges of 4% of the IRDA-regulated insurance company.
contribution, needs to rationalize its costs by
1/10th to bring it to par with other banks such 3. Choice
as SBI. EPFO must reclaim its position as a
non-profit, flow-through entity with benchmarked Mandatory deductions that translate into
costs. It should serve as an intermediary a substantial gap between haath waali (net)
between employers and employees rather than salary and chitthi waali (gross) salary in
charge employers huge administration costs, a cost-to-company world are unfair as they
translating into indirect taxation. It is also import- minimize savings. The mandatory deductions/
ant to look at the operational and administrative costs of about 35% and 5% for ₹21,000
efficiency of a government driven and operated and ₹55,000 monthly salary, respectively, are
system. We need to explore the possibility of us- lopsided, especially as research suggests the
ing the agility and efficiency of the private sector savings rate for individuals with incomes below
to operate such a system. ₹25,000 per month is close to zero. Employees
should have two choices: make any employee
2. Competition contributions (12%) and opt out of the defined
benefit EPS scheme and contribute this to their
All Employees, old and new, should have the core fund (8.33%). A reduction in deduction will
choice to contribute to EPFO or the National thus emerge as a double-edged sword that will
Pension Scheme (NPS). This will enable improve the savings-to-spending ratio while at
individuals to reclaim control over the the same time boosting formalisation.
investment and return of their savings and 4. Effectiveness
make these organisations and schemes more
accountable to their clients. It is proposed Employment has shifted from a lifetime contract
that the salary confiscation regime in formal to a taxicab relationship; most employees of this
employment be revised to grant employees generation will have multiple employers,
the agency to determine the allocation of including themselves. EPFO has a design birth
their remuneration. Emphasis must be placed defect that links records to employers rather
on allowing employees to decide whether to than employees and their many lacs of orphaned
contribute 12% of their earnings to the Provident accounts, with the last estimate putting
Fund or abstain from doing so. Furthermore, unclaimed balances at over ₹39,000 crore.
it must also grant employees the autonomy to Making EPFO contributions to an Aadhar
allocate their 12% employer contribution to number will create traceability, portability, and
either the Employee Pension Scheme or an access. This change will also enable the
individual account under the NPS. Additionally, offering of EPFO products to self-employed and
the proposal encompasses the freedom for gig workers. 21
5. Sustainability 9. Digitization

EPS must be removed from EPFO and merged The digital landscape offers multiple entry points
with universal and fiscally funded old-age for intervention. Social Protection Open Digital
security pensions like the Atal Pension Yojana. Ecosystems (SP-ODEs) present a consolidated
EPFO, as a work-linked program, must remain a digital platform facilitating seamless access to
defined contribution to avoid the risks of aging, welfare programs across diverse government
investment income, and cross-subsidy that it departments. When integrated with citizen
cannot handle. databases and direct benefit transfers, SP-ODEs
have the potential to bolster inclusive social
6. Governance protection significantly. This encompasses food
security and housing schemes and necessitates
Rectifying this governance deficit necessitates a distinct sub-ecosystem for employment-linked
establishing a more streamlined board with age social security involving active participation
and term limitations, specific expertise from statutory employers. Furthermore, several
prerequisites, a sophisticated information state labor departments have introduced
infrastructure, and substantive decision-making dedicated portals for compliance matters, such
authority. as registration and licensing, and have
7. Flexibility streamlined the process by enabling automatic
renewals for these compliances. The digital
Introducing competitive dynamics could be public infrastructure facilitates the movement of
achieved by granting employees the option individuals through a digital identification
to select from various social health insurance system, the transfer of funds via a real-time fast
plans akin to the German-model ESIS, payment solution, and, finally, the exchange of
established by consortia of employers, labor personal information through a consent-based
unions, or commercial insurers. This approach data-sharing system to realize the advantages
would afford beneficiaries, through their of Digital Public Infrastructure (DPI).
employers, the flexibility to opt for distinct
“Managed Care” entities, thus evaluating them 10. Systematic Withdrawal Plan
based on cost-effectiveness, service quality, and
customer engagement. Currently, the EPF allows retirees to withdraw
their savings only in a lump sum, which can
8. Integration
lead to financial depletion. In contrast, the NPS
requires members to use at least 40% of
All social security spending must be
their corpus for annuities, ensuring steady
integrated holistically with education, health,
income but potentially lacking value, especially
and elderly care. The required employer health
in underdeveloped markets. Additionally,
insurance program, ESI, covered around 3.14
annuities can’t be inherited if the retiree dies
crore employees (6% of the labor force),
early. A partial withdrawal scheme could help
including 51.20 lakh women out of 13.32 crore
retirees manage their wealth while accessing
beneficiaries. This program is criticized for
funds gradually. The government should
low quality, uneven coverage, and employee
consider alternatives for EPF and NPS, such
harassment. Its 75,000 crore in bank deposits
as implementing systematic withdrawal plans
demonstrates decades of overcharging
or developing more flexible annuity products.
employers, and this system should be
These changes would require amending existing
integrated with the Pradhan Mantri Jan Arogya
laws and consulting with stakeholders.
Yojana, which is part of Ayushman Bharat
and requires companies only to make
payroll deductions into Aadhar accounts.

22
11. Simplified Enrollment 13. Alternative Sources

We need strong infrastructure to effectively We need to decouple social security from its tight
integrate gig workers into the NPS and the Atal dependence on governments and on employers/
Pension Yojana (APY). The NPS offers flexibility continued employment. Contributions to EPF,
for gig workers with fluctuating incomes, for instance, are tied to a person’s employment,
while the APY provides guaranteed returns for and a gap in employment leads to a pause in the
those with lower incomes. Instead of creating social security corpus for that individual. It is,
new schemes, the government should raise however, during a period of unemployment, that
awareness about these options. Simplifying the the requirement for a social safety net is more.
enrollment process and addressing contribution Moreover, government finances are limited.
gaps from job loss or inconsistent income Hence, looking towards the government solely
are essential. Digital tools can enhance to fund a social safety net would be a folly. What
participation by ensuring convenience and could be newer sources of financing in such a
accessibility. scenario? Taxation is one avenue, but beyond a
point, taxation is coercion. It yields diminishing
returns. An innovative solution to the problem
12. Administration Vs. Regulation lies in the implementation of a Multi-Contributor
Social Security (MCSS) system which aims to
Provident fund organizations have a dual role in loosen the coupling between social security and
administering and regulating the funds, which governments or employers. It is an open,
has led to serious governance failures. As a transparent, customisable, scalable and
result, taxpayers are often left to cover the costs expandable system which seeks to leverage
of these failures. To address this, the government multiple entities, i.e. the Central and State
should form an expert committee to review the governments, employers, employees,
governance mechanisms of all provident funds. philanthropists, charitable organisations,
In the medium term, the government should also companies (as part of their Corporate Social
consider appointing the Pension Fund Responsibility - CSR) and individuals to
Regulatory and Development Authority (PFRDA) contribute directly to a designated MCSS
as the dedicated regulator for the pensions account.
sector to enhance accountability and oversight.

23
According to recent reports, the number of
Indian philanthropists contributing ₹5 crore or
more to charity reached a record high of 119
individuals in 2022-23, up from just 27 in 2016-
17, with donations totalling ₹8,445 crore in FY23,
an increase from ₹5,623 crore the previous year.
Private philanthropy has maintained an average
growth rate of approximately 8% from FY 2017
to FY 2022. CSR spending has increased by
13% over the past five years, reaching $3.3
billion (INR 27,000 crore) in FY 2022. Family
philanthropy has increased by 12% over the past
five years, reaching $3.6 billion (INR 29,600
crore) in FY 2022, primarily driven by the growth
of HNIs and affluent givers (with a net worth of
INR 7–200 crore). Retail giving, which accounts
for just over 22% of total contributions, has
grown modestly at 6% annually from FY 2017 to
FY 2022, but is projected to increase at a faster A Multi-Contributor Social Security (MCSS)
rate of 9% annually, contributing approximately system, as detailed in the section below,
29% of total private giving by FY 2027. However, emerges as a transformative solution that
despite a 9% increase in cumulative wealth, addresses multiple critical needs in India's
UHNIs in India donate significantly less than their social security landscape. It enhances efficiency
counterparts in the US, UK, and China. Indian by reducing dependence on expensive
UHNIs could increase their total contributions by administrative structures like EPFO, while
8 to 13 times if they matched the giving levels of offering choice and flexibility by allowing
their counterparts in China, the UK, and the US. contributions from diverse sources beyond
Indian UHNIs donate between 0.04% and 0.06% just employers and government. The system
of their wealth, while Chinese UHNIs contribute promotes effectiveness through its potential
between 0.37% to 2.15%. for Aadhaar integration, ensuring better
traceability and portability of benefits. Its
This shows the scope for growth in sustainability is strengthened by diversifying
philanthropy in India in the future. We need to funding sources across governments,
make available avenues for this to be done in an employers, philanthropists, and CSR initiatives,
easier and seamless manner. reducing the fiscal burden on any single
entity. The digital infrastructure enables
seamless integration of multiple contributors
In the next section, we will now look at one and beneficiaries, supporting better governance
proposed solution which takes care of the through transparency and streamlined
recommendations mentioned above, operations. Most importantly, MCSS's design
especially those pertaining to digitisation, fundamentally solves the current system's
governance, flexibility, choice, competition and rigidity by decoupling social security from
integration. It could help solve the problems of continuous employment, making it particularly
insufficient funding and inadequate coverage valuable during periods of unemployment when
that plague the social security ecosystem in social safety nets are most needed. With India's
India. growing philanthropic capacity, as evidenced
by the significant increase in high-value donors
and CSR spending, MCSS provides a structured
channel to leverage this expanding pool of
private social capital for broader social security
coverage.
24
5. The Multi-Contributor
Social Security (MCSS) system
Let’s look at the details of the proposed Multi-Contributor Social Security (MCSS) system. This system
aims to loosen the coupling between social security and governments or employers. The aim is to
make the system more open, transparent, customisable, scalable and expandable. In this whitepaper,
we look at the design of this MCSS system, the idea for which was first proposed by Nitin Pai from The
Takshashila Institution, and was detailed in a paper by Takshashila Institution (“Reimagining Social
Security for 21st Century India: A radical approach - Multi-Contributor Social Security (MCSS) system”,
authored by Arindam Goswami). In this whitepaper, we try to recommend a path forward for the
integration of the erstwhile social security systems and this new system. The details of this MCSS
system have been reproduced in the below sections to the extent necessary for the purposes of this
whitepaper. For more details about the MCSS system, readers can refer to the paper by Takshashila.

Let’s start by looking at the components of the MCSS system:

MCSS Design
25
5.1 Components
A person would designate one of his bank accounts as his Multi-Contributor Social Security (MCSS)
account. Multiple entities, i.e. the Central and State governments, employers, employees,
philanthropists, charitable organisations, companies (as part of their Corporate Social Responsibility
- CSR) and individuals should be able to contribute directly to this designated MCSS account. They in
turn could get tax benefits for their contributions. We can use the JAM (Jan Dhan - Aadhaar - Mobile)
trinity to increase the penetration of these accounts.

The MCSS account will have two components: login via the middleware platform or the specific
bank.
• A long term/special portion for pension and
4. Regulators: These will be the regulators for this
defined big expenses like wedding, medical
system. This could be a single hybrid regulator or
emergencies, studies, home loans, etc.
multiple regulators.
• A short-term portion for immediate expenses,
insurance payments, etc.
5. External services such as credit facilities like
Open Credit Enablement Network (OCEN) that can
There could be a small portion kept aside for
plug into the system at the middleware layer or at
investment purposes into mutual funds,
the banking layer.
government bonds and the like. However, the aim
of this system being social security, this portion
will have to be kept very small so as to reduce the Some parts of this system will be mandatory. We
associated risk. can mandate pension savings from the long-term
portion, insurance coverage via the short-term
The system will have the following components: portion, investments into NPS, etc. These
suggestions will ensure that the safety net doesn’t
1. MCSS Bank account: This will be a special type devolve into another savings account without
of bank account opened with a bank. It will have any retirement/pension arrangements or social
two components – a long-term/special portion security aspects. The MCSS system is, first and
and the short-term portion. Both will be described foremost, a social security system intended as a
further in this document. safety net for people in need.

2. Middleware platform: As will be described in The retirement part of the long-term portion
following sections, this system has to be very could be like the current NPS system (40% into an
flexible and customisable. Due to its complex annuity plan at retirement, etc) or it could be
nature, it would be better to have this exposed via built into this portion independent of the NPS.
a middleware/platform; maybe as an India Stack
open network. In the alternative, we could just
define the protocols, standards, security and data
requirements, and minimum basic functionalities,
and allow private sector entities to develop it. The
middleware will act as the orchestration layer for
functionalities like searchability, discoverability,
interoperability, keeping track of different portions
of the MCSS account, etc. Any value-added
functionalities in the future would also be built at
the middleware layer.

3. Contributors – These will be the various entities

that would make monetary contributions to a
person’s MCSS bank account. These will either

26
 illness), which will act as a social security/
5.2 Income Tax benefits safety net for the individual, and will be defined
Contributors will be incentivised through under the rules. Withdrawals and other usages
standard tax deduction mechanisms, mirroring of the short-term portion can be allowed only
the existing provisions of Section 80G of once it reaches the threshold. There will be
the Income Tax Act, which will provide fiscal similar thresholds defined for withdrawals and
motivation for participation while maintaining other usages of the long-term portion also.
established regulatory frameworks.
5.4 Searchability &
The potential financial governance challenges,
including risks of money laundering, round discoverability
-tripping, and tax evasion, will be comprehensively
mitigated through rigorous auditing protocols One of the main features of this system will
and enhanced income tax return processing be that, to make it more attractive and
mechanisms. The mandatory linkage of customisable for contributors, they should
transactions with PAN and/or Aadhaar data be able to search for individuals and groups
creates a robust tracking infrastructure that filtered out based on criteria like age, income,
substantially simplifies compliance monitoring livelihood sector, specific needs, employment
and reduces operational complexities for tax status, etc. That will make the process of
authorities. discoverability very seamless and easy.
Contributors could specify the purpose of
their contributions, which could help provide
5.3 Thresholds for avenues for targeted contributions. Similarly,
withdrawals recipients should be able to specify their needs
at a very granular level.
There would be different thresholds for each of
the parts of the MCSS account. The first deposits
into this account should go into the short-term 5.5 Interoperability &
portion, and once that crosses a threshold limit,
contributions can flow into the long-term portion.
transferability
This ensures that components like insurance To encourage competition, this MCSS account
premiums, which will get paid from the short- should be transferrable and interoperable
term portion, will be the first to be serviced by across different providers or banks. However,
contributions into the account. This is because while the bank account may change, the MCSS
the MCSS system is also designed as an unique id will not, which will ensure continuity
immediate safety net for individuals. Hence, and seamless service across different
retirement benefits, which are part of the providers.
long-term component, are important, this system
is also to majorly act as a source to fulfil small, The interfaces built at the middleware layer will
immediate and important expenses (for instance, have to be standardised so that private entities
withdrawing money to deal with an accident or building the middleware can integrate easily.

Every MCSS account should have a unique ID,

which we can call the MCSS account number.
The individual bank account number, which
would be different for each bank, would map to
this MCSS account number. This would help in
interoperability of this account and also in
maintaining the history for the user across
banks, thus maintaining continuity for the user.

The MCSS unique ID should be plugged into the

UPI/NPCI system. This would enable the MCSS
27
unique ID itself to be used for transfers to the It can be one of the Open Networks being
underlying bank account. This would simplify the built as part of the India Stack networks.
process considerably. Interoperability and transferability should be
non-negotiable aspects. It will also ensure
faster adoption of this across the ecosystem;
5.6 Miscellaneous features otherwise each bank will have to develop
Facilities like issuing debit cards, regular this entire capability. Alternatively, the Central
withdrawals and bank-to-bank transfers (NEFT, Recordkeeping Agencies (CRA) as in the NPS
RTGS, etc.) which are available in other bank system, which has 3 CRAs (CAMS, KFintech,
accounts, other than those allowed under the rules NSDL) could be used. NPS has a Trustee Bank
for the specific purposes of the MCSS system, (Axis bank) which handles all the transfers. In
should not be allowed for the MCSS accounts. the MCSS case, it will be the individual bank
Since this account will have different parts account which will handle all the withdrawals
dedicated to different use, the benefits of this and deposits. However, considering that
account will have to be tailored according to these, we want the data to be centrally available for
so as to maintain strict compartmentalisation. For interoperability, it makes sense to develop it
example, withdrawals may be allowed only from in one single place, like at IndiaStack or some
the short-term portion of the account which is government entity. Otherwise with private
dedicated to immediate expenses. sector entities coming in, data sharing will be
a hassle.
5.7 Need for a middleware
Building it as a middleware and exposing
The MCSS bank account will have multiple functionalities via APIs has the added
functionalities, which make it very complex. advantage that other private entities could
Building it at every bank will be difficult. Also, expand functionalities by building on top of
it would be unnecessary repetition of effort. this system. Functionalities and features could
Hence, it would be better to have it exposed via a be built as plugins to this system, and used as
middleware or as an IndiaStack open network. wrappers. This improves the ease of building
systems and also makes things agile, scalable
Middleware is the platform which will orchestrate and customisable.
all the functionalities of this system. The purpose
of the middleware platform is to expose all of the
customisability, searchability and discoverability 5.8 Data Security and
to contributors and recipients. This middleware Privacy
should be exposed via application programming
Data security for this system demands
interfaces (APIs).
a dynamic, comprehensive approach that
transcends conventional protective measures.
The government or the regulators should just
Given the sensitive nature of the data
define the protocols, standards, minimum
ecosystem—encompassing banking,
basic functionalities, security and data privacy
investments, pensions, and multiple financial
requirements, and allow private sector entities to
domains—security protocols must be
develop it. It could also be a public-private entity
perpetually evolving to align with global
or something like IndiaStack.
best practices. The approach should establish
rigorous audit and reporting mandates that
not only match but potentially exceed existing
standards in banking and fintech sectors.

Rather than micromanaging implementation,

the strategy will focus on defining precise
standards and protocols, empowering
private entities to develop robust security
infrastructures.
28
Data privacy considerations will be Pension Fund Regulatory and Development
comprehensively addressed, ensuring full Authority (PFRDA) governing pension-related
compliance with the Digital Personal Data elements. To streamline governance and enhance
Protection Act, 2023, and extending protective user experience, a unified regulatory body with
measures to incorporate the comprehensive representative membership from these key
privacy principles outlined in the General Data agencies is proposed. This integrated approach
Protection Regulation (GDPR). A critical design would provide users a singular, comprehensive
feature will be the ability to enable contributor regulatory interface for addressing potential
and account holder anonymity, providing issues, simplifying the overall regulatory
users granular control over their personal ecosystem.
information visibility.
5.10 Legal Changes
The middleware platform will serve dual
roles as both data fiduciary and data controller, Establishing a transformative financial ecosystem
with banks functioning as data acquirers for demands a sophisticated legal architecture
the user, or data principal. This centralised that balances innovation, security, and individual
approach ensures comprehensive data protection. The proposed framework requires
management and controlled data processing, strategic legislative interventions across
with information being filtered and multiple acts - RBI Act, 1934, SEBI Act, 1992, and
strategically distributed to contributors. PFRDA Act, 2014 - to create a cohesive regulatory
landscape that defines emerging financial
User data retention will extend beyond account entities, their operational parameters, and dispute
closure or system opt-out, with archived resolution mechanisms.
records maintained for essential tracking,
auditing, and compliance purposes. While
the data remains accessible for authorised
queries, its availability will be strictly controlled
and purpose-specific.

Personally Identifiable Information (PII)

will be subject to absolute confidentiality
protocols, with robust safeguards preventing
any external exposure, even in scenarios
involving targeted contributions. To preserve
individual autonomy, users will be empowered Rather than incrementally amending existing
with a "right to be forgotten" mechanism, legislation, a comprehensive standalone law
enabling them to request complete data might more effectively capture the system's
anonymisation while preserving core records complex dynamics. This approach would embed
for tax and legal requirements. This approach foundational principles of openness, deregulation,
balances comprehensive data utility with and privacy, creating a flexible yet robust
stringent privacy protections, ensuring regulatory environment. Technical specifications
individual data sovereignty within the system's for API interfaces should emerge not from
operational framework. traditional regulatory bodies, but from a
synthesised expertise group comprising
5.9 Regulators technical specialists, legal experts, civil society
representatives, judicial and executive
The regulatory landscape will necessarily be stakeholders, ensuring a holistic, nuanced
complex, involving multiple specialised approach to technological governance.
agencies: the Reserve Bank of India (RBI)
overseeing banking components, the Legislative frameworks must strike a delicate
Securities and Exchange Board of India (SEBI) balance - providing comprehensive protection
managing investment aspects, and the without becoming bureaucratically oppressive.
29
This requires meticulously defined new entities, government or employer resources. Private
platforms, and transaction protocols, including philanthropy gets an added, efficient and
explicit guidelines on withdrawal limits, premature effective avenue.
closure norms, and long-term account
The platform promotes efficiency by
management.
streamlining social security support by
To streamline oversight, a hybrid regulatory creating direct, transparent pathways between
mechanism with representation from existing contributors and recipients, eliminating
financial regulators could provide integrated bureaucratic intermediaries and reducing
governance. Critically, the proposed legislation administrative overhead. Multiple
should be comprehensively detailed, minimising contributors and diverse support mechanisms
reliance on delegated legislation. Any subordinate create a competitive environment that drives
regulations must derive authority from explicitly innovation in social support strategies. It
defined legal sources, with strict limitations provides unprecedented control and choice
preventing arbitrary expansion of transgressions, to users, with the ability to customise
penalties, or dispute resolution mechanisms. contributions based on specific criteria,
The goal is a legal framework that empowers personal preferences, and targeted social
innovation while maintaining rigorous safeguards needs.
for individual and systemic financial security. If we want to reduce systemic corruption and
In the Appendix section at the end, we have laid improve accountability in social security
out the steps that can be followed to do stock and distributions, then the increased transparency
flow migration of mandatory employer schemes and direct connections that are features of the
like ESI and EPFO to the MCSS system. MCSS system help in improving the
governance aspect in social security in India.
Flexibility is a key feature of this system.
5.11 Benefits The platform's plug-and-play architecture
allows continuous innovation, with various
The Multi-Contributory Safety System (MCSS) tries entities able to build additional features and
to reimagine social security in India by connecting use-cases. The aim is to create a holistic,
individuals and communities in order to support interconnected support ecosystem by
each other through a digital, flexible platform. At connecting digital infrastructure, private
its core, the system creates a middleware that philanthropy, and social security needs. This
seamlessly connects potential contributors with promotes integration as a key design principle.
those in need, breaking down traditional barriers in And leveraging technologies like IndiaStack
social security mechanisms. transforms traditional social security models
By leveraging India's robust digital public into modern, tech-enabled support networks.
infrastructure like Aadhaar and UPI, the MCSS This ties in neatly with the objective of using
platform introduces transparency and increased digitisation for the benefit of the
accessibility in philanthropy. Contributors can now people.
precisely target their support, using sophisticated
filters to connect with specific groups or
individuals, while recipients can broadcast
their needs with unprecedented clarity and reach.
It makes discoverability and searchability easier,
which makes targeted support mechanisms
easier to implement. This can ensure
effectiveness of the system by making sure that
resources reach the most appropriate recipients
more quickly and precisely. This system aids
sustainability by promoting long-term social
support by creating flexible, adaptable funding
mechanisms that are not solely dependent on 30
6. Conclusion

India’s current social security system is a patchwork of schemes that struggles to meet the needs of
its diverse population. The heavy dependence on an employment-linked structure has left a majority of
the workforce in the informal sector without adequate protection. Implementation challenges, lack of
comprehensive coverage, and systemic inefficiencies further weaken the impact of these initiatives.
To address these pressing concerns, an alternative model is essential—one that emphasises universal
access and decouples social security from formal employment. A rights-based approach, supported
by robust institutional frameworks, improved funding mechanisms, and the integration of digital tools,
can ensure greater efficiency and reach. Such a system should aim to cover all citizens, prioritising the
most vulnerable while fostering inclusivity and equity.

Reforming the social security framework is not just a policy imperative; it is a moral and economic
necessity. By investing in a more inclusive and effective system, India can not only uplift millions from
vulnerability but also lay the foundation for a more resilient and equitable society.

31
7. A Petition for

Change
Social Security contributions are an important
employer obligation, but we make the case for
three reforms in choice, competition, and
efficiency that will greatly improve employer,
employee, and society objectives. Our labour
laws mandate the highest employer salary
deductions in the world at 34.6% for low-wage
employees and only 5.3% for high-wage
employees (table below).

We firmly believe that the proposed reforms could raise formal employment by 10 crore and
significantly accelerate formal job creation while considerably raising employee welfare.
Please sign the attached Petition Form to enlist your support.

32
 8. Tables: State-wise Net Payroll Analysis Formal Job Creation

33
Formal Job Growth in Industries

34
 9.Appendix to MCSS model
How to do Stock and Flow Migration of mandatory employer schemes like ESI and EPFO to the MCSS
system?

Here we map out the detailed steps to do a stock and flow migration of the mandatory employer
schemes like ESI and EPFO to the MCSS system. This will have to be done very carefully with checks
and balances at every step. We look at just ESI and EPFO for now, but the same steps can be replicated
for other government-driven social security schemes.

Note that these steps are not about the entire MCSS system, but just about the migration of these
select mandatory employer schemes to the MCSS system. The MCSS system will also have aspects
of discoverability, searchability and customisability, which will be part of the middleware, which we are
not going to look at in this section.

Steps for Stock and Flow Migration of ESI and EPFO to MCSS

1. Assessment and Data Mapping:

a. ESI: Map employer contributions for health insurance to the short-term component of the
MCSS account.
b. EPFO: Redirect employer and employee provident fund contributions to the long-term
component.
c. Aggregate existing employee accounts into the MCSS database for seamless transition.

2. Policy and Legal Framework Changes:

a. Amend labour, social security, and other relevant laws to replace employer-centric
contribution systems with employee-centric MCSS-linked systems.
b. Define clear thresholds for contributions and withdrawals, ensuring continuity of benefits.
c.The laws should provide clarity about all the entities and stakeholders involved, their
responsibilities, users’ rights and responsibilities, privacy and security aspects, etc.

3. Banking system changes:

a. Banks will have to update their software systems to reflect this new type of account.
b. While all the withdrawal and other types of transactions associated with an MCSS account
can be made accessible via the middleware to ensure a single point of check, the banks would
also ideally want to have some checks at their end.

4. Digital Integration:
a. Develop middleware APIs to connect the EPFO and ESI systems to the MCSS platform.
b. Create interfaces for real-time data syncing and contributions.
c. Define protocols and standards to be followed for developing the middleware layer, and for
integrating other value-added services on top of the middleware.

5.Gradual Rollout:
a. Phase 1: Pilot the system with a subset of industries (e.g., IT and manufacturing) to ensure
robustness.
b. Phase 2: Gradually expand to cover all sectors.

35
6. Training and Capacity Building:
a. Train HR departments and payroll software providers on the new MCSS system.
b. Educate employees on the benefits and operations of their MCSS accounts.

7. Data Security and Privacy:

a. Implement robust encryption protocols to safeguard employee data.
b. Ensure compliance with data protection regulations (e.g., India’s Digital Personal Data
Protection Act).

8. Migration of Funds:
a. Transfer existing EPF and ESI funds into the corresponding MCSS components.
b. Establish processes to reconcile discrepancies during migration.

9. Performance Monitoring and Feedback:

a. Continuously monitor the system's performance through pilot programs.
b. Incorporate feedback from stakeholders to refine processes and policies.

Finer Details

Let’s look at a few of these steps in some more detail.

Step 1: Assessment and Data Mapping

This step ensures a clear understanding of how current systems (ESI and EPFO) operate, allowing for
seamless integration into the employee-centric MCSS framework.

1. Mapping Contribution Flows:

• Employee Contributions: Identify the current percentage of salaries contributed by
employees to ESI and EPFO.
• EPFO: Typically, 12% of an employee's salary is contributed by the employee, matched
by the employer.
• ESI: Employee contributions are around 0.75% of gross wages.
• Employer Contributions: Map how much employers contribute to ESI (3.25% of wages) and
EPFO (12% of salary) and ensure they are redirected to MCSS-linked accounts.

2. Beneficiary Database Migration:

• Retrieve and verify existing records from EPFO and ESI databases, including:
• Unique employee IDs (UAN for EPFO, ESI account numbers).
• Associated contributions and balances.
• Employee demographics like age, income, and dependents for benefit planning.
• Integrate this data into a unified MCSS database, ensuring every employee has a linked
MCSS account.

3. Benefit Categorisation:
• Long-Term Benefits: EPFO balances for pensions and provident fund are mapped to the
long-term component of MCSS accounts.
• Short-Term Benefits: ESI contributions for health insurance and immediate medical
expenses are mapped to the short-term component.

4. Auditing and Error Resolution:

• Conduct a thorough audit to identify data inconsistencies in current EPFO and ESI records,
such as mismatches in contributions or missing data.
36
 • Create a mechanism for employees and employers to verify and resolve disputes before
migration.

5. Identify Overlaps and Exceptions:

• Overlap: Employees contributing to both ESI and EPFO may have funds allocated to similar
benefits (e.g., health insurance). Develop rules to consolidate such overlapping contributions.
• Exceptions: Identify special cases (e.g., temporary or seasonal workers) and design tailored
MCSS account structures.

6. Crosswalk for New Contributors:

• Define mechanisms for bringing non-formal sector workers into the system. For example:
• Gig workers, platform workers and freelancers who are currently excluded from ESI
and EPFO can start contributing directly to MCSS accounts.

7. Mapping Employer Obligations:

• Redefine how employers will contribute to employees’ MCSS accounts instead of managing
ESI/EPFO payments.
• Automate employer contributions into employee-specific MCSS accounts based on real-time
salary data.
Step 4: Digital Integration
The digital integration step ensures that the MCSS platform seamlessly connects with legacy
systems like EPFO and ESIC to enable real-time contributions, data synchronisation, and smooth fund
migration. This step is pivotal for ensuring a functional and interoperable system that supports
employers, employees, and regulators.

1. Middleware API Development

Middleware acts as a bridge between the legacy EPFO/ESI systems and the new MCSS platform,
enabling data exchange and functionality alignment without overhauling existing systems.

1. API Design Principles:

• Modular Architecture: APIs should be designed to handle specific functions such as
data retrieval, fund transfers, and compliance checks independently.
• Interoperability: Ensure compatibility with various enterprise resource planning (ERP)
and pay roll systems used by employers.
• Scalability: Build APIs to handle increasing data volumes as the MCSS system
expands to cover more sectors and regions.

2. Key Middleware APIs:

• Contribution API:
• Facilitates the transfer of employer and employee contributions from payroll
systems to employee-specific MCSS accounts.
• Includes validation checks for contribution amounts based on salary slabs and
compliance rules.
• Data Synchronisation API:
• Syncs employee details, contribution histories, and fund balances between
EPFO/ESI systems and MCSS in real-time.
• Supports automatic updates when employee records are modified or transferred.

• Fund Transfer API:

• Automates the migration of existing funds (EPF balances, ESI contributions)
into the MCSS framework.
• Ensures secure and error-free transfers using encryption and checksum
37
validation.
 • Compliance Monitoring API:
• Tracks whether employers are making timely and accurate contributions for their
employees.
• Flags anomalies, such as missing or delayed payments, for regulatory action.

2. Real-Time Data Syncing

Real-time synchronisation ensures that any changes in employee status, salary, or contributions are
immediately reflected in the MCSS accounts, maintaining up-to-date records for benefits and compli-
ance.

1. Two-Way Syncing:
• From Legacy Systems to MCSS:
• Import existing data from EPFO/ESI systems, including employee
demographics,
contribution histories, and dependent details.
• Update MCSS accounts whenever there are changes in contributions or
withdrawals in legacy systems during the transition phase.
• From MCSS to Legacy Systems:
• Push updates about contributions routed directly to MCSS accounts for
reconciliation with EPFO/ESI records, ensuring a seamless handover.
2. Employee Status Tracking:
• Incorporate real-time tracking of events such as job changes, resignations, or
additions of dependents (e.g., for health benefits under the ESI component).
• Automatically trigger updates to contributions or benefit eligibility based on the
employee's status.
3. Error Handling and Resolution:
• Implement automated tools to detect and flag inconsistencies in data syncing
(e.g., mismatched employee IDs, incorrect contribution amounts).
• Build a dispute resolution interface for employers and employees to correct errors
quickly.

3. User-Friendly Interfaces
The success of digital integration depends on intuitive, secure interfaces that simplify interactions for
stakeholders.

1. Employer Interface:
• Contribution Dashboard:
• Displays pending and completed contributions for each employee.
• Provides alerts for due payments or discrepancies.
• Bulk Upload Capability:
• Allows employers to upload payroll data in batches for automated contribution
processing.
• Regulatory Compliance Checker:
• Enables employers to verify compliance with MCSS regulations before
submission.
2. Employee Interface:
• Account Overview:
• Displays real-time balances in the long-term and short-term components of the
MCSS account.
• Shows transaction histories, including contributions, interest accruals, and
withdrawals.
• Benefit Tracker:
38
 • Allows employees to track eligibility and access benefits such as pensions,
health insurance claims, or unemployment benefits.
• Portability Features:
• Enables employees to update their employment status or transfer their account
when changing jobs.
• Regulatory Interface:
• Compliance Monitoring Dashboard:
• Provides regulators with a centralised view of employer contributions,
employee accounts, and fund flows.
• Real-Time Alerts:
• Flags non-compliance issues or irregularities for timely intervention

4. Security and Data Privacy

To ensure trust and protect sensitive data, the digital integration process must prioritise security and
compliance with data protection laws.

1. Data Encryption:
• Use end-to-end encryption for all data exchanges between EPFO/ESI systems, MCSS,
and employer/employee interfaces.
2. Access Control:
• Implement role-based access controls (RBAC) to restrict data access to authorised
personnel only.
• Use multi-factor authentication (MFA) for sensitive operations, such as fund transfers
or account updates.
3. Compliance with Data Protection Laws:
• Ensure adherence to the Digital Personal Data Protection Act (DPDPA) in India,
covering consent-based data usage and protection mechanisms.

5. Integration Testing and Rollout

Thorough testing and phased implementation are essential to ensure a seamless transition.

1. Testing Phases:
• Conduct integration tests to simulate fund transfers, contribution flows, and error
scenarios.
• Perform user acceptance testing (UAT) with select employers and employees to
validate the functionality of interfaces and APIs.
2. Gradual Deployment:
• Start with a small group of employers and employees to test real-world performance.
• Scale up integration based on feedback, ensuring minimal disruption to ongoing
contributions.

6. Continuous Improvement
Digital integration is not a one-time effort but a continuous process of optimisation.

1.Performance Monitoring:
• Use analytics tools to track API response times, data sync rates, and error resolution
times.
• Address bottlenecks and improve efficiency based on performance data.
2. Feedback Mechanisms:
• Regularly collect feedback from employers, employees, and regulators to identify
pain points.
• Update APIs and interfaces to reflect evolving user needs and regulatory requirements.
39
Step 5: Gradual Rollout
A phased implementation ensures minimal disruption while building confidence among stakeholders.

1. Phase 1: Pilot Program:

• Industry Selection: Start with sectors that have a high level of compliance and digital
readiness, such as IT, manufacturing, and banking.
• Geographic Focus: Pilot the program in metropolitan regions where employer-employee data
bases are well-maintained.
• Employee Enrolment:
• Pre-populate MCSS accounts for participating employees with data from ESI and EPFO.
• Allow employees to verify their contributions, balances, and personal details during
enrollment.
• Contribution Flow Testing:
• Employers in the pilot group redirect contributions to MCSS accounts through APIs
connected to payroll systems.
• Test short-term and long-term fund allocations and the disbursal of benefits
(e.g., insurance claims).

2. Phase 2: Expansion to Organised Sectors:

• Include More Sectors: Gradually expand to sectors like construction, textiles, and education,
ensuring adjustments for unique employment patterns (e.g., daily wage workers in
construction).
• Integrate Gig Workers: Introduce voluntary contribution mechanisms for gig workers and
self-employed individuals, supported by employer-like contributions from platform companies
(e.g., Swiggy, Zomato).

3. Phase 3: Full National Rollout:

• Rural and Informal Economy:
• Engage informal workers by simplifying registration and creating micro-contribution
options.
• Collaborate with banks and microfinance institutions to increase access.
• Incentives for Adoption:
• Offer employers tax incentives for smooth onboarding to the MCSS system.
• Provide employees initial benefits like government-backed contribution matching to
encourage participation.

4. Compliance and Feedback Mechanisms:

• Establish real-time compliance dashboards for regulators to monitor employer contributions
and fund flows. These can be provided either at the middleware layer itself, or through data
sharing via APIs, or via file-based/reports-based mechanisms.
• Collect feedback from pilot participants to refine processes and address pain points.

5. Contingency and Support Systems:

• Set up a dedicated support centre for resolving migration-related queries.
• Ensure a fallback mechanism to temporarily revert to legacy systems in case of major
disruptions during the transition.

6. Performance Monitoring:
• Track metrics such as the number of accounts created, funds successfully migrated, and
claims processed in the pilot and early phases.
• Use data-driven insights to fine-tune policies, especially for underserved segments like gig
40
workers and informal labour.

Step 8: Migration of Funds

The migration of funds from existing EPF and ESI systems into the MCSS framework is a critical step
to ensure a smooth transition without disrupting employee benefits. This process involves careful plan-
ning, secure execution, and transparency to maintain trust among stakeholders. Since this involves
multiple stakeholders, there should be a centralised team that oversees this entire process. It can
involve all stakeholders, and distribute responsibilities, but the overall responsibility and accountability
should be with one central entity.

1. Transfer of Existing EPF and ESI Funds to MCSS

• Segregation of Funds:
The first step is to classify and segregate funds from EPF and ESI accounts based on their
intended purposes:
• EPF Contributions: These funds, primarily for retirement and pensions, will be
transferred to the long-term component of employees’ MCSS accounts.
• ESI Contributions: These funds, used for health insurance and immediate medical
needs, will be redirected to the short-term component of MCSS accounts.
• Centralised Transfer System:
• Develop a secure, automated transfer mechanism between the EPFO, ESIC, and MCSS
databases.
• Use unique employee identifiers, such as the Universal Account Number (UAN) for
EPFO members, to map funds to the corresponding MCSS accounts.
• The UAN number could be mapped to the unique MCSS id.
• Employee Consent and Verification:
• Notify employees of their account balances in EPF and ESI before migration.
• Allow employees to verify their details, such as contributions, dependents (for health
benefits), and personal data, before funds are transferred.
• Timelines and Prioritisation:
• Set clear timelines for fund transfers, starting with active accounts where
contributions are ongoing.
• Prioritise transfers for employees nearing retirement or requiring immediate health
benefits to avoid interruptions in payouts.

2. Establishing Reconciliation Processes

• Audit Existing Accounts:
• Conduct a pre-migration audit to ensure that account balances, interest accruals, and
contributions are accurate in the EPFO and ESIC systems.
• Cross-verify records against payroll data from employers to address any discrepancies.
• Error Identification:
• Identify common errors, such as missing contributions, incorrect interest calculations,
or duplicate accounts.
• Categorise errors based on their severity (e.g., critical discrepancies that affect
payouts vs. minor data mismatches).
• Discrepancy Resolution Mechanism:
• Create a Grievance Redressal System:
• Employees can raise queries or objections if they find discrepancies in their
migrated funds.
• Set up a timeline-bound resolution process to address these concerns.
• Employer Responsibility:
• Require employers to submit reconciled payroll data for their employees to
address any gaps in historical contributions.
41
 • Reconciliation Teams:
• Form dedicated teams at EPFO, ESIC, and MCSS to handle discrepancies and
oversee fund reconciliation.
• Equip these teams with data analytics tools to identify and resolve systemic
errors efficiently.

3. Interest and Benefits Accrual During Migration

• Seamless Interest Calculations:
• Ensure that EPF balances continue to accrue interest during the migration process.
• For ESI contributions, ensure that health benefits remain accessible to employees
without any gaps.
• Pro-rata Adjustments:
• If the migration occurs mid-financial year, calculate pro-rata interest for EPF balances
and transfer the accrued amounts into MCSS accounts.
• Similarly, adjust ESI contributions to reflect the proportion of the financial year
completed.

4. Handling Dormant or Inactive Accounts

• Inactive EPF Accounts:
• Identify dormant EPF accounts (e.g., accounts with no contributions for more than
3 years).
• Notify account holders and provide them with options to activate their accounts under
the MCSS system or withdraw their balances.
• Unclaimed ESI Contributions:
• Use a dedicated portal to inform employees and their dependents about unclaimed
ESI balances.
• Allow a grace period for beneficiaries to claim or transfer these funds to MCSS
accounts.

5. Communication and Transparency

• Clear Notifications to Stakeholders:
• Send personalised notifications to employees about the migration process, including
details of their migrated balances and expected timelines.
• Notify employers about their updated contribution responsibilities under MCSS.
• Real-Time Tracking:
• Create a tracking dashboard where employees can monitor the status of their fund
migration in real-time.

6. Post-Migration Validation
• Final Reconciliation Audit:
• Conduct a post-migration audit to ensure that all funds have been successfully
transferred and mapped to the correct MCSS accounts.
• Cross-check employee feedback and payroll data to confirm accuracy.
• Report Generation:
• Generate detailed reports for regulators, employers, and employees, summarising
the migration outcomes.

7. Contingency and Support Systems

• Dispute Resolution Escalation:
• Establish a multi-tiered grievance escalation framework, enabling employees to
approach higher authorities if initial resolution attempts fail.

42
 • Fallback Mechanism:
• Maintain the capability to revert individual accounts to the EPF/ESI systems in case
of critical migration failures, ensuring no loss of employee benefits.

43
10. References
• Quarterly bulletin and annual reports of PLFS

• Key Employment Unemployment Indicators for (Jan-Dec 2023), Directorate General of Employment

• Monthly Payroll data of EPFO

• Annual Reports and Statistical Brochure of ESIC

• Household Savings Data of RBI

• Reimagining Social Security for 21st Century India: A radical approach - Multi-Contributor Social
Security (MCSS) system - https://takshashila.org.in/research/multi-contributor-social-security-system

• India Philanthropy Report 2023. March 1, 2023. Bain and Company. https://www.bain.com/insights/
india-philanthropy-report-2023/

• More philanthropists around, but donations tell a different story. November 3, 2023. Mint. https://
www.livemint.com/news/india/more-philanthropists-around-but-donationstell-a-different-
story-11698949756899.html

• Pai, Nitin. "Reimagining Social Security for the 21st Century." June 23, 2021. Nitin, You Can't Be
Serious!. https://www.nitinpai.in/2021/06/23/reimagining-social-security-for-the-21st-century

• India's pension scheme review must prioritise fiscal prudence, development spending, economists
say. April 11, 2023. The Economic Times. https://m.economictimes.com/news/economy/finance/in-
dias-pension-scheme-reviewmust-prioritise-fiscal-prudence-development-spending-economistssay/
articleshow/99403732.cms

• IAS Parliament. The Expenditure on Pension. Accessed June 13, 2024. https://www.iasparliament.
com/current-affairs/the-expenditure-on-pension.

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 *This report was created by India Employer
Forum in partnership with TeamLease Services & Takshashila Institution