Constitution of National Social Security Boards for Unorganised and Gig Workers

UPSC Relevance: 

GS Paper II & III: Welfare schemes for vulnerable sections, Government policies and interventions, and employment-related Issues in the informal economy. 

Why in News 

The Union Ministry of Labour and Employment constituted two key bodies under the Code on Social Security: a 40-member board for unorganised workers and a 22-member board dedicated specifically to gig and platform workers. 

Background

 • Institutional Shift: India vast informal workforce has long lacked comprehensive safety nets. The Code on Social Security consolidated nine central labor enactments into a unified framework to extend social protections across formal and informal sectors. 

• Statutory Recognition: The code formally defined gig and platform workers for the first time, establishing dedicated registration mechanisms, social security funds, and advisory welfare bodies. 

Impact & Measures

 • Key Implications:

 o Welfare Coverage: Facilitates structured schemes addressing health, maternity, disability, life insurance, creche facilities, and old-age security for non-formal workers. 

o Aggregator Responsibility: Mandates digital platforms and aggregators to contribute 1–2% of their annual turnover towards the welfare pool, capped at 5% of total worker payouts. 

o Broader EPFO Reach: EPF norms now apply to any establishment with 20 or more workers, removing previous schedule-based industry limitations. 

• Challenges & Initiatives: 

o Monitoring decentralized workers across diverse platforms requires seamless coordination between central boards, state agencies, and digital operators. 

o The boards, chaired by the Union Labour Minister, are tasked with meeting regularly to oversee fund accounts, monitor implementation, and advise on policy administration.

Essential Definitions

 • Gig Worker: A person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationships.

• Platform Work: A work arrangement outside traditional employment where organizations or individuals use an online platform to access software or provide specific services.

Legal and Constitutional Framework 

• Code on Social Security, 2020: Legally empowers the government to establish welfare boards and mandate social security funds for gig and informal workers.

• Article 39(e) & (f): Directive Principles directing the State to safeguard the health and strength of workers and ensure opportunities for human development. 

• Article 41: Mandates the State to make effective provision for securing the right to work, education, and public assistance in cases of unemployment or old age.

 Conclusion The operationalisation of the National Social Security Boards marks a crucial step toward institutionalising social protection for India growing digital and unorganised workforce. Ensuring transparent fund utilization and effective inter-state coordination will be essential to deliver meaningful welfare outcomes.