Kerala an example of ‘welfare magnet State’”©A.S. Jayanth

“Kerala an example of ‘welfare magnet State’”

A.S. Jayanth

 

Kozhikode

Kerala has set an example of a “welfare magnet State” through its “systematic and organised labour welfare initiatives and inclusive development”, especially for migrant labourers, says a paper presented at the ‘Regulating for Decent Work’ conference of the International Labour Organisation (ILO) at Geneva between July 2 and 4.

The paper, presented by K. Ravi Raman, member, State Planning Board, also suggests the possibility of designing a better economic and fiscal strategy towards the migrant welfare system, including an “exclusive budget” for the guest workers. The cost to the State to ensure dignified work and living conditions for them by maintaining welfare benefits for another five years is estimated to be ₹454 crore.

Mr. Raman says that Kerala was the first State to implement the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, “in letter and spirit,” by registering those who bring workers to the State and by providing a comprehensive welfare package for the workers.

The government introduced the Kerala Migrant Workers’ Welfare Scheme, jointly implemented by the Kerala Building and Other Construction Workers’ Welfare Board and the Labour department. The social safety net includes health and education assistance, death benefits, financial aid for repatriating the body of a deceased worker, financial relief for those who are permanently disabled and unable to work, medical benefits, terminal benefits, educational grants, and maternity benefits. The welfare schemes are implemented by the Labour department, the Welfare Board, and the State Health Agency.

Migrants are able to generate an average surplus income or savings of about ₹4,000 per month. Moreover, around 32% of them remit more than ₹30,000 per year.

It is estimated that the annual outflow to other States from Kerala is between ₹7,500 crore and ₹8,000 crore.

The paper points out that rapid urbanisation, demographic shifts, and changes in fertility rates are key factors contributing to Kerala’s current status as a favoured destination for inter-State migrants.

The State has the highest proportion of elderly people — the non-working-age population — at around 14%, well above the national average of 9%. The total fertility rate has declined to 1.5, well below the replacement level. This drop has led to a shrinking domestic labour pool, a trend that is even more pronounced among the Scheduled Castes, from whom a significant portion of the workforce is drawn.

The State’s average population growth rate is expected to turn negative within a decade, with some districts having already arrived at this figures.

With mortality and fertility rates reaching saturation, Kerala’s demand for workers continues to rise and is currently being met by inter-State migrants. The wages on offer are also higher — ₹893.6 compared to the all-India average of ₹417.3.

Migration typically occurs from high-fertility, low-wage regions to low-fertility, high-wage regions. However, Mr. Raman points out that with declining fertility rates and rising wages in the sending States, Kerala is likely to witness a drop in the number of inter-State migrants in the near future.