Code on Social Security, 2020

Code on Social Security, 2020
  • Context:  

  • The Government has introduced the Code on Social Security, 2020. 

  • It consolidates nine existing labour laws into a single comprehensive framework to ensure universal social protection. 

  • About the Code: 

  • It represents a significant reform aimed at extending social security benefits to all employees and workers, 

  • It covers both the organised and unorganised sectors. 

  • It seeks to simplify compliance, enhance efficiency, and expand access to benefits (like life insurance, health, and maternity benefits) 

  • Key Features: 

  • Universal Coverage:  

  • It extends EPFO and ESIC coverage nationwide to include more establishments and workers. 

  • Gig & Platform Workers:  

  • For the first time, these workers are formally recognised. ‘ 

  • The Code mandates social security schemes for them  

  • It also establishes a Social Security Fund for their welfare. 

  • Women-Centric Provisions:  

  • It strengthens benefits such as 26 weeks of maternity leave, crèche facilities, and options for work-from-home. 

  • It provides for specific schemes for self-employed and unorganised workers to ensure their protection. 

  • It promotes digital records, decriminalizes minor offences, and introduces a transparent Inspector-cum-facilitator system