Social security code 2020
- June 28, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Social security code 2020
Why in the news?
According to the NitiAyog’s report- “India’s Booming Gig and Platform Economy” India’s gig workforce will increase by 67 per cent to 2.35 crore by 2029-30 from 77 lakh in 2020-21. It has also suggested a number of steps for both the private sector and government to take care of the interests of this segment.
Details:
The report broadly classifies gig workers into platform and non-platform based workers.
- Platform gig workers are those whose work is based on online software applications or digital platforms.
- Non-platform gig workers are generally casual wage workers and own-account workers in the conventional sectors, working part-time or full time.
Recommendations:
- It has asked the government to ensure universal coverage of platform workers through the Code on Social Security.
- It has further asked to bridge skill gaps by carrying out periodic assessments and partnering with platform businesses for onboarding skilled women and persons with disabilities (PwDs).
- It also suggested reaching out to “unbanked and underbanked women and PwDs” through fintech services.
- The think tank has created a framework RAISE, for operationalising the Code on Social Security (CoSS), 2020.
- It also recommended introducing a ‘Platform India initiative’ on the lines of the ‘Startup India initiative’.
Social Security Code 2020:
- The SS Code 2020 subsumes nine regulations relating to social security, retirement and employee benefits.
- The central government can apply the Code to any establishment (subject to size-threshold).
- The definition of ‘employees’ will include contractual labour, gig workers, platform workers, labour from construction sites and most importantly interstate migrant labour. Thus, the Code has widened coverage by including the unorganised sector, fixed term employees and gig workers, platform workers, inter-state migrant workers etc. For the first time, provisions of social security will also be extended to agricultural workers also.
- Registration is a prerequisite for universal coverage and to avail social security, an informal worker must register herself on the specified online portal to be developed by the central government.
- It aims to establish a National Database and Registration-With the aim of making a national database for unorganised sector workers, registration of all these workers would be done on an online portal and this registration would be done on the basis of Self certification through a simple procedure.All records and returns have to be maintained electronically.
- The code provides for the establishment of a national and various state-level boards for administering schemes for unorganised sector workers.
- The National Social Security Board may also act as the Board for the purposes of welfare of gig workers and platform workers and can recommend and monitor schemes for gig workers and platform workers.
- There is uniformity in determining wages for the purpose of social security benefits.
- It has provided a wide definition for wage.
- Specific exclusions with ceilings have been provided for discouraging inappropriate structuring of salaries to minimise social security benefits.
- Consultative Approach has been brought in a facilitating approach by the authorities. Unlike the existing role of inspectors, the Code provides for an enhanced role of inspector-cum-facilitator whereby employers can look for support and advice to enhance compliances.
- To enable that demand for human resources is met and to monitor employment information, career centres will be established.
- Any failure to deposit employees’ contributions not only attracts a penalty of Rs. 1,00,000, but also imprisonment of one to three years. In case of repeat offence, the penalties and prosecution is severe, and no compounding is permitted for repeated offences.
- Schemes for gig workers and platform workers will be funded through contributions from the central government, state governments and aggregators.
- Any contribution from aggregators may be at a rate between 1-2 percent of the annual turnover of the aggregators.
- However, such contributions cannot exceed 5 percent of the amount paid or payable by an aggregator to gig workers and platform workers.