India Sets Up Social Security Board for Gig Workers

INDIA ESTABLISHES SOCIAL SECURITY BOARDS FOR GIG WORKERS

WHY IN THE NEWS ?

  • New Development: The Union Labour Ministry has notified the constitution of two National Social Security Boards for unorganised workers and gig and platform workers.
  • Objective: These Boards aim to design, recommend and monitor targeted welfare schemes, bringing vulnerable workers within India’s formal social security framework.

India Sets Up Social Security Board for Gig Workers

CONSTITUTION AND COMPOSITION OF NATIONAL SOCIAL SECURITY BOARDS:

  • Two Boards: The Union Labour Ministry has established the National Social Security Board for Unorganised Workers and the National Social Security Board for Gig and Platform Workers.
  • Membership: The Board for Unorganised Workers comprises 40 members, while the Board for Gig and Platform Workers consists of 22 members.
  • Leadership Structure: Union Labour and Employment Minister Mansukh Mandaviya will serve as Chairman of both Boards, while the Union Labour Secretary will act as Vice-Chairman.
  • Representation: The Boards include representatives from Central and State governments, employers, aggregator companies, civil society organisations, workers’ unions and gig worker associations.
  • Industry Participation: Representatives from companies such as Zomato (Eternal Group), Swiggy, Zepto, Urban Company and Rapido have been included, alongside labour organisations and worker education institutions.

FUNCTIONS, OBJECTIVES AND SIGNIFICANCE OF THE BOARDS

  • Welfare Schemes: The Boards will recommend suitable and targeted social security schemes for different categories of unorganised, gig and platform workers.
  • Policy Advisory: They will advise the Union Government on the implementation and administration of the Code on Social Security, 2020.
  • Scheme Monitoring: The Boards will monitor the implementation of social welfare schemes and assess their effectiveness in providing benefits to workers.
  • Financial Oversight: Their responsibilities include reviewing expenditure from relevant funds and accounts and examining record-keeping functions performed at the State level.
  • Institutional Mechanism: The Boards will meet at least three times annually, providing a regular institutional platform for policy recommendations and monitoring.
  • Formal Recognition: According to the Labour Ministry, the initiative represents a significant step towards incorporating digital gig and platform workers into India’s formal social security architecture.

ABOUT CODE ON SOCIAL SECURITY, 2020 :

●      Legislative Framework: The Code on Social Security, 2020 is one of India’s four Labour Codes, aimed at consolidating and simplifying existing labour laws relating to social security.

●      Worker Categories: It formally recognises categories such as unorganised workers, gig workers and platform workers, expanding the scope of social protection.

●      Gig Workers: These are individuals who earn through work arrangements outside the traditional employer-employee relationship, often undertaking task-based assignments.

●      Platform Workers: These workers access organisations or individuals through online platforms to provide specific services, including transportation, delivery and other digital services.