How welfare board will function, what changes for unorganised, gig workers, Pg12

Key Highlights:

• The Ministry of Labour and Employment notified the constitution of the National Social Security Board (NSSB) for unorganised workers (40 members) and for gig and platform workers (22 members).
• These boards are tasked with designing, monitoring, and recommending welfare schemes to address social security gaps for these worker categories.
• The Code on Social Security, notified in November last year, merged nine social security laws and legally defined gig and platform workers for the first time.
• The Code mandates a national registration and the creation of a Social Security Fund for unorganised and gig workers.

Detailed Insights:

• The Code on Social Security is one of the four labour codes enacted to consolidate and simplify existing labour laws in India.
• The NSSBs will advise the Central government on framing and monitoring suitable schemes for different sections of unorganised, gig, and platform workers.
• The 40-member board for unorganised workers includes representatives from employees, employers, government departments, and Parliament, with significant representation from RSS-linked unions like Bharatiya Mazdoor Sangh (BMS) and Laghu Udyog Bharati.
• The 22-member board for gig and platform workers includes representatives from aggregators such as Zomato, Zepto, Swiggy, and Urban Company, alongside worker representatives.
• The NSSB is mandated to meet at least thrice a year and recommend schemes covering life and disability, accident insurance, health and maternity, old age protection, and crèche facilities.
• The Social Security Fund for gig and platform workers will receive contributions from Central and state governments, corporate social responsibility, fines, and aggregators.
• Aggregators like Amazon, Flipkart, Swiggy, and Zomato are required to contribute 1-2% of their annual turnover to the fund, capped at 5% of the amount payable to workers.
• The boards will also monitor social welfare schemes, review expenditure from the fund, and advise the central government on the administration of the Code.
• The provisions of the Employees’ Provident Fund Organisation (EPFO) now apply to all establishments employing 20 or more employees, removing previous industry-specific limitations.

Key Concepts Involved:

• Unorganised Workers: Workers not covered by formal social security schemes, often in small-scale, informal, or household enterprises.
• Gig Workers: Individuals performing work for a fee, often on a task-by-task basis, through digital platforms or directly.
• Code on Social Security: One of the four labour codes in India, consolidating laws related to social security for various worker categories.
• National Social Security Board (NSSB): A statutory body established to advise the government on social security schemes for unorganised, gig, and platform workers.
• Social Security Fund: A dedicated fund created under the Code to provide social security benefits to gig and platform workers through various contributions.