Government releases Draft Labour Code on Social Security & Welfare

March 18, 2017

The Union Labour Ministry has proposed a labour code which will provide social security cover to the entire workforce in the country, including self-employed and agricultural workers.
In this regard, it has proposed a draft code on Social Security and Welfare with an aim to provide social security cover to the entire workforce in the country of about 45 crore workers.

Features of Draft code

It will cover every working person whether he/she belongs to the organised sector or the unorganised sector in the country under it.
Thus, for the first time, agricultural workers along with self-employed people will be covered under the social security cover. Even factories employing single worker will have to contribute towards social security benefits.
It will cover any factory, mine, shop, plantation, charitable organisations and all establishments or households employing casual, fixed-term, part-time, informal, apprentice, domestic and home-based workers.
If such establishments or factories fail to contribute towards the social security schemes of the workers, they will be liable to pay compensation.
It even covers households employing domestic help and they will also have contribute towards schemes, including gratuity for the worker and provident fund.
It proposes, National Social Security Council (NSSC), chaired by the Prime Minister to streamline and make policy on social security schemes related to all the Ministries.
NSSC’s other members will include Union Finance Minister, Labour Minister, Health and Family Welfare Minister along with employer and employees’ representatives.
It will co-ordinate between central and State governments, monitor the implementation of social security schemes, regulate funds collected under various social security schemes, among others.

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