Introduction
The Code on Social Security, 2020 is one of the four Labour Codes enacted to consolidate and simplify India’s social security laws and extend social protection to organised, unorganised and gig workers.
Key Objectives
1. Universalisation of Social Security: The Code aims to extend social security benefits beyond the organised workforce to unorganised, gig and platform workers.
2. Simplification of Labour Laws: It consolidates nine existing central labour laws into a single legislative framework to reduce regulatory complexity.
3. Social Protection: It seeks to provide workers with financial security against contingencies such as old age, sickness, maternity, employment injury and unemployment.
Major Provisions
1. Coverage of Unorganised Workers: The Code provides for the registration of unorganised workers, including home-based, self-employed and wage workers, to facilitate access to welfare schemes.
2. Recognition of Gig and Platform Workers: It formally recognises gig and platform workers and provides for social security schemes covering life and disability, accident insurance, health and maternity benefits and old-age protection.
3. Social Security Funds: It provides for the establishment of social security funds for unorganised, gig and platform workers to finance welfare schemes.
4. EPF and ESI Coverage: It provides for Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI) coverage, subject to prescribed establishment and employee thresholds.
5. Gratuity Benefits: It provides gratuity after five years of continuous service, with an exception for fixed-term employees, who become eligible after completing one year of service under the contract.
6. Maternity Benefits: It retains maternity benefits, including up to 26 weeks of paid maternity leave for eligible women employees.
7. Aggregator Contribution: Aggregators are required to contribute 1–2% of their annual turnover towards social security for gig and platform workers, subject to a cap of 5% of the amount paid or payable to such workers.
8. National Social Security Board: It provides for a National Social Security Board to recommend and monitor welfare schemes for unorganised, gig and platform workers.
9. Fixed-Term Employment: Fixed-term employees are entitled to social security benefits similar to permanent employees, including gratuity after completing one year of service.
10. Women-centric Provisions: The Code provides for maternity benefits, crèche facilities and the option of work from home, subject to mutual agreement between the employer and employee.
Conclusion
The Code represents a shift from employment-linked welfare towards inclusive social protection. Its success depends on effective implementation, adequate financing and universal accessibility of benefits.
| This Concept Has Been Covered Under This Article: Social Security of Unorganised and Gig Workers: Institutional Gaps, Federalism and Inclusive Labour Welfare |