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LATEST NEWS UPDATES | Rework social security code for informal workers -Santosh Mehrotra and Kingshuk Sarkar

Rework social security code for informal workers -Santosh Mehrotra and Kingshuk Sarkar

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published Published on May 19, 2021   modified Modified on May 26, 2021

-The Hindu Business Line

It needs to be simplified, avoiding multiple authorities and allowing for seamless integration of existing State-run schemes

The Code on Social Security 2020 (SS Code) was passed in Parliament in September 2020 and obtained presidential assent. Thankfully, its implementation has been postponed due to States not issuing notifications. Now, due to the Covid crisis, implementation of all the four new Codes on labour is to be postponed to next year. This is good, since there are many problems with the Codes, especially the SS Code.

The SS Code, once in place, will merge eight existing labour laws including Employees’ Compensation Act 1923, Employees’ State Insurance Act 1948, Employees’ Provident Funds and Miscellaneous Provisions Act 1952, Maternity Benefit Act 1961, Payment of Gratuity Act 1972, and Unorganised Workers’ Social Security Act 2008.

However, the SS Code does not still provide for universal social security for 91 per cent of India’s workforce. This is especially disappointing given that the demographic dividend of young workers who can support the aged and ageing will shrink from 2030 onwards, and disappear at the end of the decade.

Moreover, many ambiguities remain in the SS Code, which are discussed below.

This new Code attempts to reconfigure the social security landscape for the unorganised sector, defined to cover diverse occupations that include the self-employment too. Gig and platform workers have been defined separately — the conceptual distinction between self-employed and gig workers is left unstated.

Please click here to read more.


The Hindu Business Line, 19 May, 2021, https://www.thehindubusinessline.com/opinion/rework-social-security-code-for-informal-workers/article34599616.ece?utm_campaign=amp_article_share&utm_medium=referral&utm_source=whatsapp.com&fbclid=IwAR2OrdLDNA4UmUZ096


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