India’s Social Protection Coverage Jumps to 64.3% in 2025, Ranks Second Globally After China

New Delhi: India’s social protection coverage has recorded a sharp rise from 19 per cent in 2015 to 64.3 per cent in 2025, placing the country at second position globally, just behind China, in terms of providing social protection to its population. The significant improvement reflects the steady expansion of social welfare schemes and structural labour reforms undertaken over the past decade.

Following the scaling up of welfare programmes for vulnerable sections, the labour reforms announced by the government this year are expected to further strengthen the country’s social security framework. These measures aim to ensure wider coverage, improved compliance, and long-term income and workplace security for workers across formal and informal sectors.

India’s progress in this area has also received international recognition. The country was awarded the prestigious International Social Security Association (ISSA) Award 2025 for “Outstanding Achievement in Social Security” at a global event held in Malaysia in October this year.

India Social Protection Coverage Rises Sharply With Welfare Expansion

Building on the momentum of reforms, Prime Minister Narendra Modi launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) on August 15, 2025. The scheme carries a substantial outlay of ₹99,446 crore and aims to incentivise the creation of more than 3.5 crore jobs across India over a two-year period.

Out of the total targeted beneficiaries, 1.92 crore are expected to be first-time entrants into the workforce. The response to the scheme has been strong, with over 2.35 lakh establishments already registered on the PMVBRY portal. The number of first-time employee beneficiaries under the scheme is estimated to have crossed 20.7 lakh so far.

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To support employment generation, enhance employability, and expand social security coverage, the scheme places special emphasis on the manufacturing sector. Under PMVBRY, first-time employees receive one month’s wage, capped at ₹15,000, while employers are provided financial incentives for up to two years for generating additional employment. The manufacturing sector is eligible for extended benefits for another two years, encouraging long-term job creation.

Labour Codes Reshape Employment and Worker Protection Framework

In a landmark reform, the government consolidated 29 existing central labour laws into four comprehensive Labour Codes. These include the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020.

The new legal framework is designed to improve ease of doing business while expanding wage security, social protection, and workplace safety for workers. It brings under its ambit women, migrant workers, as well as gig and platform workers, who were earlier outside the formal social security net.

The Code on Wages introduces a uniform definition of wages and statutory minimum wages across sectors, strengthening income security and reducing disputes. The Industrial Relations Code simplifies laws related to trade unions, conditions of employment, and the investigation and settlement of industrial disputes. The Code on Social Security extends life, health, maternity, and provident fund benefits to all categories of workers, including those in the unorganised and digital economy, supported by digital systems and facilitator-based compliance. The Occupational Safety and Health Code focuses on safeguarding worker rights, ensuring safe working conditions, and maintaining a business-friendly regulatory environment.

India Social Protection Coverage Strengthened Through EPFO and ESIC Reforms

To further enhance social security benefits, the Employees’ Provident Fund Organisation (EPFO) undertook a major digital transformation during the year. Key initiatives included auto-settlement of claims up to ₹5 lakh, the introduction of a centralised pension system, and FAT-enabled Universal Account Number (UAN) activation, significantly simplifying processes for subscribers.

Similarly, benefits under the Employees’ State Insurance Corporation (ESIC) were expanded by extending coverage to 713 districts, up from 688 earlier. Healthcare infrastructure under ESIC also saw a major boost, with the number of hospital beds increasing three-fold to 87,715 in FY 2024–25.

In addition, ESIC launched the Scheme to Promote Registration of Employers and Employees (SPREE 2025). The initiative offers a one-time opportunity for employers and employees who may have been left out of ESI coverage to register without concerns over retrospective liability or punitive action.