Code on Social Security 2020

  • September 9, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Code on Social Security 2020

Subject – Economy

Context – Implementing social security code a priority, says Minister.

Concept –

  • The Indian Parliament, in a bid to rationalise the 44 labour codes in India, consolidated them into four labour codes and enacted them by 2020. The four labour codes are –
    • The Code on Wages, 2019;
    • Industrial Relations Code, 2020;
    • Code on Social Security, 2020; and
    • Code on Occupational Safety, Health and Working Conditions, 2020.
  • The Code on Social Security, 2020is a code to amend and consolidate the laws relating to social security with the goal to extend social security to all employees and workers either in the organised or unorganised or any other sectors.
  • Social security refers to protection measures provided to workers to ensure healthcare and income security in case of certain contingencies such as old age, maternity, or accidents.
  • The act amalgamates nine central labour enactments relating to social security.
    • It consolidated The Employees’ Compensation Act, 1923, The Employees’ State Insurance Act, 1948, The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959, The Maternity Benefit Act, 1961, The Payment of Gratuity Act, 1972, The Cine Workers Welfare Fund Act, 1981, The Building and Other Construction Workers Welfare Cess Act, 1996, Unorganised Workers’ Social Security Act 2008.
  • The Code has widened coverage by including the unorganised sector, fixed term employees and gig workers, platform workers, inter-state migrant workers etc.
  • There is uniformity in determining wagesfor the purpose of social security benefits.
  • The Code also provides for the setting up of a ‘National Social Security Board’. The functions of the Board include recommending schemes to the central government and also monitoring the schemes for the different types of workers, advising the Government on matters relating to the administration of the Code amongst others.

For more information on Code on Social Security, please click here.

Code on Social Security 2020 economy