National Social Security Boards for Unorganised and Gig Workers

National Social Security Boards for Unorganised and Gig Workers

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Key takeaways

  • The Union Labour Ministry constituted statutory social security boards for unorganized and gig workers under the Code on Social Security, 2020.
  • The National Social Security Board for Unorganised Workers consists of 40 members, while the board for gig workers includes 22 members under the leadership of the Union Labour Minister.
  • Major aggregator companies such as Swiggy, Zomato, Zepto, Rapido, and Urban Company are included as board members to represent platform employers.
  • This initiative aims to support an expanding gig workforce that NITI Aayog estimates will reach 2.35 crore by 2029-30.
  • Statutory rules make it mandatory for both newly established security boards to convene meetings at least 3 times per year.

Why in News

  • The Union Labour Ministry officially notified the formation of two dedicated bodies: the National Social Security Board for Unorganised Workers and the National Social Security Board for Gig & Platform Workers.

Key Provisions and Features of the Boards

  • Both boards derive their authority from the Code on Social Security, 2020, marking a major legislative step to extend formal welfare protection to non-traditional workers.
  • The National Social Security Board for Unorganised Workers has 40 members, whereas the National Social Security Board for Gig & Platform Workers comprises 22 members.
  • The Union Minister for Labour and Employment leads both boards as Chairman, while the Union Labour Secretary serves as Vice-Chairman.
  • Board members come from central and state departments, labor unions, civil society groups, and leading digital aggregators including Swiggy, Zomato, Zepto, Rapido, and Urban Company.
  • The primary mandate of these boards is to formulate, supervise, and suggest specialized welfare programs tailored for unorganized, gig, and platform workers.
  • They are tasked with advising the Union Government on implementing the Code on Social Security, 2020 effectively.
  • They will regularly inspect fund expenditures and track state-level worker registration and record-keeping mechanisms.
  • By statutory rules, each board must hold official meetings at least 3 times a year.

Challenges

  • Trade unions argue that board membership favors central officials and platform companies over actual worker representation.
  • Labor associations point out that establishing administrative boards matters little unless tangible welfare benefits actually reach the workers on the ground.

Significance and Future Outlook

  • This decision reinforces the nation's institutional architecture to protect flexible labor forces, which NITI Aayog projects will expand to 2.35 crore workers by 2029-30.

Worker Definitions Under the Code on Social Security 2020

  • A Gig Worker earns income through non-traditional work setups operating outside standard employer-employee arrangements.
  • A Platform Worker provides services or completes tasks via online algorithmic matching applications and digital platforms without a traditional employment contract.
  • An Unorganised Worker includes self-employed individuals, home-based workers, or wage earners outside organized coverage, as well as formal sector workers not protected by laws like the Industrial Disputes Act, 1947.