The Code on Social Security, 2020

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The Code on Social Security, 2020 was presented to the Lok Sabha on September 19, 2020 and was adopted on September 22, 2020. The Bill was passed in Rajya Sabha on September 23, 2020. It acquired Presidential approval on September 28, 2020.

The Code on Social Security, 2020 has an objective of extending social security to all employees and workers, whether organized or unorganized or any other sector. It replaces the following existing laws: –

  • Employees Compensation Act, 1923
  • Employees State Insurance Act, 1948
  • The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
  • Employment Exchanges Act, 1959
  • Maternity Benefit Act, 1961
  • Payment of Gratuity Act, 1972
  • Cine Workers Welfare Fund Act, 1981
  • Workers Cess Act, 1996
  • Building and Other Construction and Unorganized Workers Social Security Act, 2008

The Central Government by notification can apply this Code to any establishment subjected to the size-threshold that can be notified. The Social security funds for gig workers, unorganized workers and platform workers will be established by the Central Government. The State Governments will also create and control independent social security funds for unorganized workers.

The Code also includes provisions for the registration of gig workers, unorganized workers and platform workers. In addition to the unorganized workers, it will also manage schemes for the welfare of gig workers and platform workers. The Board will be composed of: –

  • five State Governments representatives,
  • five representatives of gig workers,
  • five representatives of aggregators appointed by the Central Government,
  • platform workers appointed by the Central Government, and
  • Director General of the ESIC.

The number of representatives of Central Government officials in the Board from five to ten members and in the State Boards from seven to ten members for unorganized workers.