Code on Social Security Bill introduced in Lok Sabha

Syllabus subtopic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Prelims and Mains focus: About the key features of the Bill and its significance on welfare of the unorganized sector workforce in India

News: The Code on Social Security, 2019 was introduced in Lok Sabha on Wednesday.

Context: The unorganised sector, which accounts for a little over 80 per cent of India’s total workforce, has largely been out of social security schemes as well as the ambit of labour regulations at present.

Key features of the Bill

It proposes universalisation of social security benefits for the country’s around 5 crore workforce, along with offerings such as medical, pension, death and disability benefits to them.

The Code also provides an enabling provision for constituting special purpose vehicles for the implementation of schemes for unorganised sector workers.

It also seeks to expand the sources of the fund for various schemes under the Code to include funds from corporate social responsibility(CSR).

The Code empowers the Centre with an enabling provision to change the mandatory monthly contribution towards employees provident fund (EPF) for a certain class of employees for a certain period.

Employers will, however, have to contribute to the retirement fund at the existing rate. This will help increase the take-home pay of workers with relatively lower salaries.

The Bill also empowers the government to frame schemes for providing social security to gig workers and platform workers who do not fall under the traditional employer-employee relation.

It also provides for payment of gratuity in case of fixed-term employment on pro-rata basis, even if the period for fixed term contract is less than five years. Under the current Act, an employee is entitled for gratuity only after completing five years of continuous service.

The Bill also provides for maternity benefit to the woman employees and compensation to the employees in case of the accidents while commuting from residence to place of work and vice-versa.

The Code will make Aadhaar mandatory for seeding at the time of registration of member or beneficiary or any other person to register or for receiving benefits.

Difference between Organised and Unorganised sector

Source: Indian Express

Join Our Telegram

India–Australia Economic Cooperation and Trade Agreem

India–Azerbaijan

05 Apr, 26
SHARE

A year after tensions arising from Operation Sindoor, India and Azerbaijan have taken steps to restore and normalise bilateral relations. The 6th round of Foreign Office Consultations, held in Baku, marked the first such engagement since 2022, signaling renewed diplomatic momentum. Recent Diplomatic Engagement During the consultations, bo

India–Australia Economic Cooperation and Trade Agreem

04 Apr, 26
SHARE

The India–Australia Economic Cooperation and Trade Agreement has completed four years since its signing. Both countries now aim to build on this progress through strengthened collaboration and ambitious targets, including reaching AUD 100 billion in bilateral trade by 2030. What is the India–Australia Economic Cooperation and Tra

ADR Report on Political Funding

03 Apr, 26
SHARE

A recent report by the Association for Democratic Reforms (ADR) analyses donations of ?20,000 or more declared to the Election Commission of India (ECI) by national political parties for FY 2024–25, highlighting transparency and accountability in political financing. Key Findings Massive Funding Surge Total donations to nationa

Maritime Chokepoints

03 Apr, 26
SHARE

Maritime chokepoints are narrow channels along global shipping routes where maritime traffic is concentrated. These points are geopolitically and economically critical, as they handle a large proportion of global trade, especially energy shipments. Current Relevance Over two-thirds of seaborne energy trade passes through a handful o

US-Israel-Iran War

01 Apr, 26
SHARE

Following the launch of Operation Epic Fury (U.S.) and Operation Roaring Lion (Israel), the geopolitical landscape has shifted fundamentally with the confirmed death of Iran’s Supreme Leader, Ayatollah Ali Khamenei.Iran retaliated through Operation True Promise 4, launching missile attacks against Israel and nearby Gulf states. The escala