Social Security Code

Social Security Code

Part of: GS Prelims and Mains II and III – Govt policies and schemes;  

Key facts: 

• Even 73 years after Independence, only 9.3% of India’s 466 million-strong workforce has social security.  
• This means the remaining 90.7% still cannot aspire to protections that civil servants, employees of most registered private sector enterprises, banks and public sector employees, legislators and judges take for granted. 
• No other G20 country has such a high share of informal workers.  

About: 

Report on Social Security Code by Parliamentary Committee on Labour – 

• Recommended the eligibility period for gratuity payable to an employee on termination of his employment should be reduced to one year from the present provision of five years.  
• Also recommended that this facility be extended to all kinds of employees, including contract labourers, seasonal workers, piece rate workers, fixed term employees and daily/monthly wage workers. 
• Stressed that there should be a robust redressal mechanism in case an employer does not pay up the dues. 
• Highlighted that the draft social security code does not state any goal of providing social security to all its citizens. 
• Recommended that the Social Security Code should have provisions to hold the employer liable for payment of gratuity to the employees within a stipulated time frame.