Social Security Code

  • IASbaba
  • August 4, 2020
  • 0
UPSC Articles
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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.  


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. 

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