Facts Box: Drafts Security Code

The Union Government recently circulated the Draft Security Code that integrates existing labor laws and provides new initiatives to provide social security to workers of unorganized sector, insurance and helath benefits to gig workers. It includes drivers of private vehicle hiring services as well. The code also aims at corporatization of organizations like ESIC And EPFO.

Key Features of the Code

Insurance, life cover, PF for unorganized sector employees

  • According to the code, the Central Government shall formulate welfare schemes for the workers of unorganized sector from time to time on matters relating to life, disability, maternal benefits, health, old age protection.
  • While framing schemes the government will look out for key initiative relating to the workers’ housing, educational scheme for their children, funeral assistance, old age assistance, etc

Corporatization of ESIC and EPFO

The world body for the EPFO And ESIC related world bodies have been added in the scheme. This will bring an end to the autonomous body status of organizations that are responsible for pension, retirement and insurance. It aims to make the EPFO a more structured national body.

Gig Worker

The Gig workers will get insurance, health and maternal benefits under the security code.

Maternal Benefits

Every woman worker under the act will be entitled to payment of maternity benefit. The payment is to be at the rate of average daily wage for the period of her actual absence.

Merging existing labor laws

The Code on Social Security will merge the following laws

  • Employees Compensation Act, 1923
  • Employees Insurance Act, 1948
  • Maternal Benefit Act, 1961
  • Provident Funds and Miscellaneous Provisions Act, 1952
  • Cine Workers Welfare Fund Act, 1981
  • Unorganized Workers’ Social Security act, 2008

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