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LATEST NEWS UPDATES | Social Security Code Limits Workers Access to Benefits Through Bureaucracy-Raj -KR Shyam Sundar

Social Security Code Limits Workers Access to Benefits Through Bureaucracy-Raj -KR Shyam Sundar

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published Published on Nov 23, 2020   modified Modified on Nov 24, 2020

-Newsclick.in

The Unorganised Workers’ Social Security Act, 2008 (UWSSA) rightly conceives a “decentralised registration model” at the local levels with the help of the Workers’ Facilitation Centres (WFCs).

Unimaginative and obscure rulemaking will make it difficult for workers to access benefits that the law entitles them to, argues Dr. K R Shyam Sundar.

The government has endorsed the unjustified stinker of a tag of “Inspector-Raj”, crowned by the business class to labour and factory inspectors. However, the Rules seem to promote “Bureaucratic-Raj” as several matters are still left to the will and pleasure of bureaucrats.

Limited Definition of Wage Affects Employer Contribution to Insurance Schemes

Rules have retained the rates of contribution for employers (3.25%) and employees (0.75%) that were amended in July 2019. Earlier the combined contribution was 6%.

But the definition of “wages” in the existing Employees’ State Insurance Act, 1948 is wider.

Various judicial decisions have led to the legalisation of several components of wages, other than basic wages and dearness allowance (DA).  For example, wages under ESI Act include several components like house rent allowance, overtime allowance, conveyance allowance and so on.

However, SSC has narrowed the definition of wages to three components, viz. basic wages, DA and retaining allowance (the last one is a rare component save in seasonal industries).  So, if the eligible wages is lower, then the total outgo for an establishment will be lower also.

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Newsclick.in, 23 November, 2020, https://www.newsclick.in/Social-Security-Code-Limits-Workers-Access-Benefits-Bureaucracy-Raj?fbclid=IwAR3EjS80slAO62vktF-2jLLTnjR-P3Meu6GlDI3Ul-BAiw2gZcBgCeY0INo
 

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