New Delhi, July 28 (IANS) The cabinet Thursday approved the establishment of a national social security fund with an initial allocation of Rs.1,000 crore to provide social security benefits like insurance, pension and healthcare to some 433 million workers in the unorganised sector.

Prime Minister Manmohan Singh chaired the meeting.

The fund, announced by Finance Minister Pranab Mukherjee during the union budget for 2010-11, will benefit weavers, toddy tappers, rickshaw pullers and beedi workers, among others.

"This fund will support social security schemes for various segments of unorganised workers as most of these workers do not have any social security cover in the form of life and disability insurance, health care and pensions," the finance minister had said in his budget speech.

"This would facilitate formulation of social security schemes for unorganised workers. The fund will also facilitate evolution and funding of schemes by various departments which are currently involved in the welfare of these segments of workers."

The ministry of labour and employment will be the nodal ministry for the operation of the fund, according to an official statement released after a cabinet meeting here.

More than 94 percent of India's workforce is in the unorganised sector.