India Employer Forum

Employment

India’s Social Security Challenge and the MCSS System

  • By: India Employer Forum
  • Date: 11 April 2025

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Arindam Goswami, Research Analyst, Takshashila Institution, speaks to the India Employer Forum about the challenges in India’s current social security system, the proposed MCSS system, its components and much more.

He said, “During Covid, Nitin Pai, founder of the Takshashila Institution, came up with the idea to construct a new social security system that was not coupled tightly with the government and employers and that uses India’s Digital Public Infrastructure (DPI) to connect people with each other. This system reimagines the way social security is done in India and brings in private sector synergies and agility in a way that could solve the problem of coverage and finances faced by the current social security system in India.

The current social security system comprising the EPFO, ESIC, Insurance schemes and unemployment allowance schemes, etc., driven by the government, is able to provide coverage to only about 1/10th of the total labour force in the country. With MCSS, the idea is to have components that would enhance the coverage and offer greater flexibility by introducing private philanthropy in addition to the government and employers. 

This MCSS system could be operated by private bodies under the oversight of the government to provide greater efficiency to the existing system. The MCSS, built around a bank account linked to each individual, would incorporate features such as searchability, interoperability, and portability. It strives to provide greater flexibility and choice to the user by providing a social security net that would also meet the long and short-term financial requirements of individuals.  

About Arindam Goswami

Arindam Goswami is a Research Analyst at The Takshashila Institution, working in the High-Tech Geopolitics Programme. Arindam has a B. Tech. in Computer Engineering and an MBA in Marketing, and he has completed Takshashila’s Graduate Certificate in Public Policy (GCPP) course in Advanced Public Policy.

He has worked extensively in the fintech industry. Until recently, he was heading backend engineering at SonyLIV. After more than 13 years in the software industry, he decided to switch to the public policy space and is contributing meaningfully to how public policy is discussed, researched, framed and implemented. 

Disclaimer: The opinions and views expressed in this article, including any accompanying data, are the sole responsibility of the author and should not be construed as reflecting the official policy or position of India Employer Forum.

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