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The Code on Social Security (2019) was brought out in Lok Sabha (constitutionally the House of the People, which is the lower house of India’s bicameral Parliament) in December 2019. The aim of the Code On Social Security is very much significant. It strives to abide by and strengthen the important Central Labour Laws relating to the matters connected to social security and the social security of the employees. The word social security mainly refers to the measures to ensure access to health care for workers and the provision of income security. The main key features of the Code on Social Security are depicted throughout the whole article.
Social Security Scenario
In our country, extreme poverty and exploitative labour laws without social security were important tools to bring equitable redistribution and justice. India has strived for long about social security in sections like labour, women, child labour and so on. The main problem also lies with the social security system which mainly helps a particular section of the society. The complexity of the laws made them a failure in achieving their goals.
Context
The important central labour laws were recommended by the 2nd National Commission on to the labour ministry. In the whole process of combining the labour laws into four codes namely, code on industrial relations, code on wages, code on health and working and social security and safety code.
Social Security Code 2019
It mainly replaces the nine laws on social security. They are listed below:
- Employee’s Compensation Act, 1923
- Employee’s State Insurance Act, 1948
- Employees’ Provident Funds, Miscellaneous Provisions Act, 1952
- Maternity Benefit Act, 1961
- The Employment Exchanges Act, 1959
- Payment of Gratuity Act, 1972
- Cine Workers Welfare Fund Act, 1981
- Building and Other Construction Workers Cess Act, 1996
- Unorganized Workers’ Social Security Act, 2008
Aim of the Code on Social Security
The aim of the code on social security totally focuses on the employee’s State Insurance. Extends coverage to all deployments after employing 10 or more workers. For deposits with less than 10 employees, the application is pretty much voluntary. In the Plantation sector, the code written is optional. The central government may extend the policy to any sort of deposit with hazardous work notified by the central government. Employee’s Provident Fund, Employee’s Deposit, Pension Scheme employing twenty or more employees. The key features of the code on social security are listed below –
Social Security Schemes
The central government may send notifications on multiple social securities like the Employee’s Provident Fund, Employee’s Deposit, Pension Scheme, and linked insurance scheme for the benefit of workers. It may provide for a provident fund, insurance scheme or pension scheme. Also, the aim of the code on social security may also provide for the compensation to the employees and their dependents for occasional injuries and diseases. The state or the central government may also provide notifications for the schemes related to life cover, disabilities cover for not only the gig economy workers and platform workers but also the unorganized workers.
Social Security Fund
The code on social security also provides setting up a social security fund by utilizing
Corpus is available under different corporate social responsibilities. This fund will surely provide welfare benefits such as medical cover, death and disability benefits, pension and cash help for all the workers, including gig workers as well.
Gratuity Benefits
Gratuity is provided for only the fixed-term workers. There are some changes in contributions like The EPS, EDLI, EPF and ESI schemes will be financed by a deadly combination of the employer himself and the employee. The bill also provides the option of reducing the provident fund contribution by the employee which is currently at 12% of the basic salary. Therefore, increase workers’ take-home pay. It does not also change the employer’s contribution which is currently at 12%.
If there’s a failure by an employer to pay contributions under the code after deducting the employee’s share is punishable with imprisonment between one and three years, and a fine assigned to the person would be one lakh rupees. False reports or fraudulent behaviour by a person is highly condemned and is punishable with imprisonment of up to six months. Thus, the aim of the code of social security is highly organized throughout its implementation.
Conclusion
The aim of the Code On Social Security is very much significant. It strives to abide by and strengthen the important Central Labour Laws relating to the matters connected to social security and the social security of the employees. The code on social security is a robust set-up to affect the economy, efficiency and effectiveness in the working of the social security domain. The sheer inclusion of the unorganized sector is inception as today’s economy is service sector dominated. Further positive changes may be looked forward to as they are in a big game and long run which would surely be helpful to the wide sections.
