Code on Social Security The Code on Social Security has been tabled in Parliament as a Bill. It is currently waiting for Gazette Notification. The Social Security Code was introduced in March 2017. In November, the labour ministry dropped some contentious clauses from 2018 draft due to extreme opposition from trade union. This gave an idea about setting up a National Social Security Council that merged and centralized the current Employee’s Provident Fund Organization and Employee’s State Insurance Corporation. After all the commotion and controversial emerge during the process, finally it has been enacted as a Bill. The Code on Social Security has been announced as a bill on 17th September 2019. This draft amalgamates 8 Central Acts i.e.
Social Security Organization Employee’s Provident Fund Organization Employee’s State Insurance Corporation Gratuity Maternity Employee Compensation Building & Other Construction Worker & Social Security for Unorganized Worker
This draft extent to whole of India including Jammu & Kashmir and Leh Ladakh. “Social Worker” means the measures of protection afforded to worker to ensure access to health care and to provide income security, particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity or loss of a breadwinner by means of rights enshrined and schemes framed under the Code.
Key Features The proposed regulation extents the entire workforce which means it will cover the both the organized and unorganized sector. It is assumed that around 50 crore workers are covered under this code. The code has made changes to addition in the existing definitions such as Appropriate Government, Commissioning mother and Gig worker. The Labour Code includes nine types of Social Security such as Pension, Sickness Benefit, Maternity Benefit, Disablement Benefit, Invalidity Benefit, Dependent’s Benefit, Medical
Benefit, Group Insurance Benefits, Provident Fund, Unemployment Benefit and International worker’s pension benefits. The beneficiaries will continue to enjoy the benefits of pension, provident fund and insurance under EPFO and the medical benefit under ESIC. The three schemes under EPFO- Employees Provident Scheme for establishment of PF, the Employees’ Pension scheme and Employees Deposited Linked Insurance Scheme (EDLI) is framed for pension and life insurance benefits under the current code. This draft has introduced a new scheme for subscriber to switch to the National Pension Scheme. The draft says that, “The chief executive officer of the Board or any other officer authorized by him in this behalf may, upon receipt of an application allow any employee or a class of employees to exercise the option to join the National Pension System”. However an employee, who is newly joined the organization can also opt for National Pension Scheme without making any application under the code. This code clarifies the definition of ‘worker’, ‘self-employed worker’ and ‘employee’. The code also specifies the provision to prohibit gender discrimination in wages. The code says, “Central Government shall formulate and notify from time to time, suitable welfare schemes for unorganized workers on matter relating to life and disability cover; health and maternity benefits; old age protection and any other benefit as may be determined by the central government”. A concept of ‘Gig’ worker has been introduced in the bill. It considers such workers who are on the move and have to be protected from safety welfare point of view. The Gig workers may get life and disability insurance, health and maternity benefits among others. As per the draft, “The Central Government may formulate and notify, from time to time, suitable social security schemes for gig workers and platform workers on matter relating to:(a) Life and disability cover; (b) Health and maternity benefits; (c) Old age protection; and (d) Any other benefit as may be determined by the Central Government”.
The maternity benefit under this code subject to, every female employee is entitle if she has completed eighty days in the twelve months immediately preceding the date of her
expected date of the delivery and her employer shall be liable for the payment of maternity benefit at rate of the average daily wage for the period of the actual absence. The most captive part of this code is that it also involves the Finance and Accounts section. This segment helps to keep proper income and expenditure record. The account of each of the Social Security Organization shall be audited annually by the Comptroller and the Auditor-General of India. The draft mentioned that the budgeting shall be done yearly showing the probable receipts and expenditure. The code proposes enabling corporate structure in Social security schemes such as ESIC and PF. CEO will be responsible for administration of the scheme
Current
Proposed
Employee’s Provident Fund Organization Appointment of Officers of The trustees of the Central Chief Executive Officer (CEO) of Central Board Provident Fund Organization the central Board has general were having overall control control and superintendence of and superintendence of that that board. board. Financial Advisor and Chief Accounts Officer will assist the CEO to discharge his duties. The Central Board may appoint officers and employers to monitor the administration of PF, EPF, EPS and EDLI. Schemes The existing are: The Central Government may 1.Employee;s Provident Fund framed the schemes : 2.Employee’s Pension Fund 1.Employee’s Provident Funds Schemes 2.Employee’s Pensions Schemes National Pension Scheme The existing employee can switch over to NPS by making an application. Newly join employee can opt for NPS without making any application. Joining NPS the employee deemed to be exited from EPS and EDLI. Priority of payment of Contribution will have first
contribution over other debts.
Principal Officers
charge on the assets of the establishment over other debts. Employees State Insurance Corporation Existing authority are : Corporation appoints Chief 1. Director Executive Officer (CEO). 2.Regional Director And Financial Commissioner shall be Principal Officers of the Corporation.
Contributions
All employees to be insured
Presumption as accident arising in course of employment
Option for Employee to opt out from the Medical benefit and Sickness benefit
The contribution was deposited under Employees State Insurance Scheme. The employees drawing salary /wages upto 21000/- are covered. The accident arising out of and during the course of employment was covered.
No such option was available.
Contribution, etc., due to Corporation to have priority over other dues
Reporting of Accidents, Injury, Death and Occupational Diseases.
Gratuity No specific changes Maternity Benefit No specific changes Employee Compensation Employer should give notice to the competent authority of any accident or bodily injury or death within 7 days.
The contribution will be deposited under Employees State Insurance Fund. All employees in the establishment shall be insured under this code. The accident arising in the course of employee’s employment shall be presumed, in the absence of evidence to the contrary, to have arisen out of that employment. The employee can opt out from the Medical Benefit and Sickness Benefit at any time. The employer shall not deduct the employee’s contribution payable by the employee from his wages for such period the employee had opted out. Contribution will have first charge on the assets of the establishment over other debts.
Every employer has to report to competent authority of every accidents or any occupational disease contacted by any
employee by working within 24 hours.
Amount of compensation
Any fatal accident shall be reported immediately. Where PTD/PPD/TD results from the injury, an amount equal to 60%/ fourth schedule/25% respectively of the monthly wages of the injured employee multiplied by the relevant factor or an amount may be notify by the Central Government from time to time.
Where PTD/PPD/TD results from the injury, an amount equal to 60%/ fourth schedule/25% respectively of the monthly wages of the injured employee multiplied by the relevant factor or an amount of Rs. One lakh and forty thousand whichever is more only for PTD. Distribution of compensation Apart from compensation, Apart from compensation, any any other sum amounting to other sum amounting to not less not less than ten rupees than five thousand rupees which which is payable as is payable as compensation may compensation may be be deposited to the competent deposited to the competent authority. authority. Building and Other Construction Workers Welfare Cess Interest payable on delay in If employer fails to pay any If employer fails to pay any payment of cess amount of cess, he shall be amount of cess, he shall be liable liable to pay interest at the to pay interest at the rate of 12% rate of 2% Social Security for Unorganised Workers Record Keeping The record keeping is Government can formulate and performed by the District notify the scheme and shall Administration. provide therein the form and manner keeping the records electronically or otherwise relating to the scheme and the authority by whom such records shall be maintain. Registration for Unorganised Every Unorganised worker Every Unorganised worker shall Worker shall be eligible for the be eligible for the registration registration who has who has completed sixteen years completed fourteen years of of age or such as prescribed by
age or such as prescribed by the Central Government.
the Central Government. He meets such socio economic criteria as may be prescribed by the Central Government. The Central Government may formulate and notify Social Security Schemes for the gig and platform workers relating to : a. Life and disability cover b. Health and maternity benefit c. Old age protection and d. Any other benefits as may be determined by the Central Government. Every scheme formulate and notify may provide for : a. The manner of administration of the scheme b. The agencies for implementing the schemes c. Role of aggregators in the scheme d. The sources of funding of the scheme and e. any other matter as the Central Government may consider necessary for the efficient administration of the Scheme.
Schemes for gig workers and platform workers
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Complied By Karma Research Team