New Delhi: The Central Government has officially implemented all four new labour codes, including the Social Security Code, 2020, marking one of the biggest overhauls in India’s labour law system. With this decision, 29 old labour and social security laws have been merged into a simplified, modern framework.

The Social Security Code aims to extend benefits such as PF, pension, ESI, gratuity, maternity benefits, accident insurance, and old-age protection to a far wider section of the workforce — including gig workers, platform workers, fixed-term employees, and unorganised workers.

Gig Workers Get Social Security for the First Time

Delivery workers and drivers associated with companies such as Swiggy, Zomato, Ola, Uber, Amazon, and Flipkart will now be eligible for social security schemes. This is the first time India has legally recognised gig and platform workers under social welfare laws.

Under the Code, these companies must contribute a portion of their annual turnover to a Social Security Fund that will be used to provide insurance, pension, and other benefits.

Major Reforms in Gratuity and ESI

• Fixed-term employees will now be eligible for gratuity without completing 5 years, a major change benefiting contract workers.

• The coverage of Employee State Insurance (ESI) has also been expanded and can be applied to more establishments, even those with fewer employees, if notified.

National Database for All Workers

Workers across organised, unorganised, and gig sectors will be registered through an Aadhaar-based national portal, allowing portability of benefits across jobs and states.

Industry Concerns and Gig Worker Demands

While workers’ groups have welcomed the move, some gig worker associations are demanding immediate activation of welfare schemes, stating that implementation on the ground is still pending. On the other hand, some industries have expressed concern about higher compliance costs under the new system.

Expected Impact

Experts suggest that the new codes could expand India’s formal social security coverage to nearly 85% of the workforce in the next few years — a major step forward for worker welfare.