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Social Security code


Topics Covered:

  1. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections.

Social Security code

What to study?

For Prelims: Features of the code.

For Mains: need for and significance of the code.


Context: Labour Minister has introduced the Code on Social Security, 2019, in the Lok Sabha.



  • To amalgamate a clutch of existing laws and proposes several new initiatives including universal social security for unorganized sector workers and, insurance and health benefits for gig workers.
  • To Corporatize of existing organizations like EPFO and ESIC headed by people other than the labour minister.


Key features of the code:

  1. The Code will merge eight exiting labour laws includingEmployees’ Compensation Act, 1923; Employees‘ State Insurance Act, 1948, Employees‘ Provident Funds and Miscellaneous Provisions Act, 1952; Maternity Benefit Act, 1961.
  2. The bill seeks to establish a social security fund and tap the corporate social responsibility fund to offer unorganized sector workers medical, pension, death and disability benefits via the employee’s state insurance corporation.
  3. Exemption: It will empower the central government to exempt select establishments from all or any of the provisions of the code and makes Aadhaar mandatory for availing benefits under various social security schemes.
  4. It proposes to offer gratuity to fixed term employees after one year of service on a pro-rata basis as against the current practice of five years.
  5. Insurance, PF, life cover for unorganized sector employees:Central Government shall formulate and notify, from time to time, suitable welfare schemes for unorganised 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.


Sources: the Hindu.