Context: One year after the implementation of the Code on Social Security, 2020, the Union Labour Ministry constituted the National Social Security Boards for Unorganised Workers and Gig and Platform Workers.
- Although the constitution of the Boards is a welcome step, their highly centralised composition and inadequate representation of trade unions and State Governments may limit their effectiveness.
National Social Security Boards: Composition and Concerns
- Board for Unorganised Workers
- Chairperson: Union Minister for Labour, Mansukh Mandaviya.
- Total members: 40, nominated by the Union Government.
- Representation: Seven members representing unorganised sector workers and seven representing their employers.
- Board for Gig and Platform Workers
- Total members: 22.
- Representation: Five representatives each from aggregators and gig/platform workers.
Major Concerns
- Centralisation: Both Boards are controlled by the Union Government, with members nominated by it.
- Inadequate representation: Central Trade Unions, particularly those associated with Opposition groups, and Opposition-ruled State Governments lack significant representation.
- Federal imbalance: Labour falls under the Concurrent List, requiring cooperation between the Union and State Governments.
- Limited stakeholder participation: Insufficient representation of workers' organisations and States may weaken policy formulation and implementation.
Social Security: Meaning and Status in India
- Definition of Social Security: The International Labour Organization (ILO) defines social security as societal protection ensuring access to healthcare and income security, particularly during:
- Old age, unemployment and sickness.
- Invalidity and work-related injuries.
- Maternity and loss of a breadwinner.
- Status of Social Security Coverage
- According to the Union Government, India's social security coverage increased from 19% in 2015 to 64.3% in 2025, covering approximately 94 crore citizens.
- However, unorganised, gig and platform workers, constituting more than 92% of India's total workforce, continue to face substantial social security deficits.
- The article highlights the gap between reported social security coverage and effective protection of workers under the comprehensive ILO definition.
Earlier Committees and Recommendations
- National Commission for Enterprises in the Unorganised Sector (NCEUS)
- Headed by economist Arjun Sengupta, the Commission recommended several measures to improve social security for informal-sector workers nearly two decades ago.
- Many of its concerns regarding inadequate social protection, employment insecurity and poor working conditions remain unresolved.
- Justice V. Gopala Gowda Report (2026)
- A report prepared for the Government of Keralam in March 2026 highlighted certain anti-federal and anti-worker features of the Code on Social Security.
- Recommended amendments to address these concerns and improve the protection of workers.
Key Challenges in Providing Social Security to Informal Workers
- Employment insecurity: Informal employment often involves irregular income, absence of written contracts and lack of employment protection.
- Inadequate social protection: Limited access to health insurance, pensions, maternity benefits and accident compensation.
- Fragmented institutional framework: Multiple schemes and implementing agencies create coordination and portability challenges.
- Weak worker representation: Informal workers often lack strong collective bargaining institutions and representation in policymaking.
- Federal coordination deficit: Centralised decision-making can undermine State-level flexibility and effective implementation.
- Gig economy vulnerabilities: Platform workers face uncertain earnings, algorithmic control, occupational risks and absence of conventional employer–employee relationships.
Way Forward
- Strengthen cooperative federalism: Ensure meaningful participation of State Governments in social security policymaking and implementation.
- Democratise institutional representation: Provide adequate representation to Central Trade Unions, worker organisations and employers, including diverse stakeholder groups.
- Implement NCEUS recommendations: Revisit the Arjun Sengupta Commission's recommendations on minimum social security protection for informal workers.
- Amend the Social Security Code: Incorporate recommendations of the Justice V. Gopala Gowda Committee to address anti-federal and anti-worker provisions.
- Ensure universal and portable benefits: Develop portable health insurance, pensions, maternity benefits and accident protection irrespective of employment location or platform.
- Strengthen worker participation: Institutionalise consultation with trade unions and worker collectives in designing and monitoring welfare schemes.
Important Constitutional Provision
Labour under the Concurrent List
- Entry 23, Concurrent List: Social security and social insurance; employment and unemployment.
- Entry 24, Concurrent List: Welfare of labour, including conditions of work, provident funds, employers' liability, workmen's compensation, invalidity and old-age pensions, and maternity benefits.
- Both Parliament and State Legislatures can legislate on these subjects, subject to constitutional provisions governing legislative conflicts.
