Centre Constitutes Social Security Boards for Gig and Unorganised Workers

The Union government announced the formation of National Social Security Boards dedicated to unorganised workers, as well as gig and platform workers, under the Code on Social Security, 2020. These newly established boards are intended to advise the administration on relevant social security measures and welfare schemes.

According to a ministry notification, both boards have a designated tenure of three years and will function under the chairmanship of the Union Minister for Labour and Employment, with the labour secretary serving as the vice-chairperson.

Mandate and Functions

• Unorganised Workers Board: Mandated under Section 6 of the Code on Social Security to recommend social security schemes, advise the Centre on welfare matters, and monitor implementation.
• Gig and Platform Workers Board: Formed under Section 114(6) to discharge similar advisory and monitoring functions for platform workers, utilizing a distinct set of members.

Composition and Stakeholder Representation

• Unorganised Workers: Includes representatives from trade unions, employers' organisations, civil society, Members of Parliament, central ministries, and state governments, with the Director General of Labour Welfare serving as ex-officio member-secretary.
• Gig and Platform Workers: Includes five aggregator representatives from Eternal Group, Swiggy, Zepto, Urban Company, and Rapido; worker representatives from IFAT, BMS, NFITU, and TUCC; officials from ESIC and EPFO; representatives from five state governments (Uttar Pradesh, Maharashtra, Andhra Pradesh, Gujarat, and West Bengal); and expert members from the V V Giri National Labour Institute and Dattopant Thengadi Board.

Key Provisions of the Code on Social Security

Section 114 of the Code outlines frameworks for framing social security schemes covering life and disability protection, accident insurance, health and maternity benefits, old-age protection, and crèche facilities. It also establishes a Social Security Fund financed through contributions from the Centre, state governments, aggregators, and other sources.

Aggregators are required under the framework to contribute between 1 per cent and 2 per cent of their annual turnover towards social security, subject to a ceiling of 5 per cent of the amount paid or payable to workers. The Centre remains responsible for notifying the exact rate of contribution and the implementation date.