NATIONAL SOCIAL SECURITY BOARDS FOR UNORGANISED AND GIG WORKERS

02 Nov 2026

Tags: Prelims   Current events of national and international importance

Source: The Hindu

Context: The Ministry of Labour and Employment notified two boards under the Code on Social Security, 2020 to recommend, monitor and review social security schemes for unorganised, gig and platform workers.

National Social Security Boards

  • Unorganised Workers Board: 40 members, including workers' and employers' representatives, government officials and Parliament members.
  • Gig and Platform Workers Board: 22 members, including representatives of workers, aggregators and government.
  • Chairperson: Union Labour and Employment Minister.
  • Vice-Chairperson: Union Labour Secretary.
  • Meetings: At least three times a year.

Functions of the Boards

  • Recommend suitable social security schemes to the Central Government.
  • Review expenditure and accounts of the Social Security Fund.
  • Review state-level record-keeping and implementation.
  • Advise the Centre on matters relating to administration of the Code.
  • Social Security Benefits Envisaged: Life and disability insurance; Accident insurance; Health and maternity benefits; Old-age protection; Crèche facilities.

Social Security Fund for Gig and Platform Workers

  • Sources: Central and State Government contributions, Corporate Social Responsibility (CSR), penalties and other prescribed sources.
  • Aggregator Contribution: 1–2% of annual turnover, capped at 5% of the amount paid/payable to workers.
  • Covered Aggregators: E-commerce, food delivery, quick commerce and platform-based service companies.

Changes under the Code on Social Security, 2020

  • Legal Recognition: First legally defined gig workers and platform workers.
  • Registration: Provides for national registration of unorganised, gig and platform workers.
  • EPFO Coverage: Employees' Provident Fund provisions extended to establishments employing 20 or more employees, irrespective of industry.
  • Consolidation: Subsume nine earlier social security laws into a unified framework.

Important Definitions

  • Gig Worker: Person earning from work arrangements outside the traditional employer–employee relationship.
  • PlatformWorker: Person undertaking work through an online platform connecting service providers with customers.
  • Aggregator: Digital intermediary or marketplace connecting buyers and sellers or service providers.

Prelims Question

Q1. With reference to the Code on Social Security, 2020, consider the following statements:

  1. The Code provides legal recognition to gig workers and platform workers as distinct categories of workers.
  2. Every platform worker is necessarily a gig worker, but every gig worker need not be a platform worker.
  3. Aggregators are required to contribute towards the social security fund for gig and platform workers, subject to prescribed limits.
  4. The Code makes all gig and platform workers automatically eligible for Employees' Provident Fund benefits irrespective of their employment arrangements.

Which of the statements given above are correct?

(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 2, 3 and 4 only
(d) 1, 3 and 4 only

Answer: (b) 

Explanation:

  • Statement 1 is Correct: The Code on Social Security, 2020 provides statutory definitions for gig workers and platform workers.
  • Statement 2 is Correct: Platform workers constitute a category of workers undertaking platform-based activities. Gig work is broader and may also include work arrangements outside online platforms.
  • Statement 3 is Correct: Aggregators are required to contribute between 1% and 2% of their annual turnover, subject to a ceiling of 5% of the amount paid or payable to gig and platform workers.
  • Statement 4 is Incorrect: EPF coverage is governed by separate provisions concerning eligible establishments and employees. Recognition as a gig or platform worker does not automatically confer EPF eligibility.