Social Security Code, 2020 passed

Social Security Code, 2020 passed

Part of: GS Prelims and GS-I – Society & GS-II – Schemes

In news

• Lok Sabha passed the Social Security Code, 2020 recently.

Extending the reach of Employees’ State Insurance Corporation:

• Efforts have been made to provide right to health security under ESIC to maximum possible workers
• The facility of ESIC would now be provided in all 740 districts. At present, this facility is being given in 566 districts only.
• Establishments working in hazardous sectors would mandatorily be linked with ESIC, even if there is only one worker working in it.
• Provision for linking unorganised sector and Gig workers with ESIC. 

Extending the reach of Employees’ Provident Fund Organisation (EPFO):

• EPFO’s coverage would be applicable on all establishments having 20 workers. 
• At present, it was applicable only on establishments included in the Schedule.
• Option to join EPFO is also being given to establishments having less than 20 workers.
• Schemes would be formulated for workers coming under the category of ‘Self-employed’ or falling under any other category under the aegis of EPFO.

Other key takeaways 

• Provision has been made to formulate various schemes for providing comprehensive social security to workers in unorganised sector. 
• A “Social Security Fund” will be created in order to implement these schemes.
• Provision for Gratuity has been made for Fixed Term Employee and there would not be any condition for minimum service period for this.