The Code on Social Security, 2020 consolidates and replaces 9 major central labour laws to simplify compliance and extend universal welfare coverage.
1. The Nine Consolidated Acts
📦 Amalgamated Statutes:
The Code replaces: (1) Employee's Compensation Act, 1923; (2) ESI Act, 1948; (3) EPF Act, 1952; (4) Maternity Benefit Act, 1961; (5) Payment of Gratuity Act, 1972; (6) Cine-Workers Welfare Fund Act, 1981; (7) Building Workers' Welfare Cess Act, 1996; (8) Unorganized Workers' Social Security Act, 2008.
The Code replaces: (1) Employee's Compensation Act, 1923; (2) ESI Act, 1948; (3) EPF Act, 1952; (4) Maternity Benefit Act, 1961; (5) Payment of Gratuity Act, 1972; (6) Cine-Workers Welfare Fund Act, 1981; (7) Building Workers' Welfare Cess Act, 1996; (8) Unorganized Workers' Social Security Act, 2008.
2. Key Reforms and New Classes
- Universal Definition of Wages: Standardizes the definition of "wages" across all codes, reducing disputes over what components (allowances) are subject to PF/ESI deductions.
- Gig and Platform Workers:
Historically, gig workers (e.g., delivery partners, ride-hailing drivers) and platform workers fell outside traditional "employer-employee" definitions and enjoyed zero benefits.
The 2020 Code formally defines Gig Workers and Platform Workers, mandating the central government to frame social security schemes covering life/disability, maternity, and old-age benefits for them. - National Social Security Board: Established to recommend schemes for unorganized workers, gig workers, and platform workers.
- Social Security Fund: Funded through contributions from platform aggregators (1% to 2% of their annual turnover) and government grants to finance welfare benefits.