The Code on Social Security Act, 2020
The Code on Social Security, 2020 (Act No. 36 of 2020) is a landmark legislation enacted by the Indian Parliament to consolidate and amend the laws relating to social security for employees and workers across organized and unorganized sectors. It aims to extend social security benefits to all workers, including gig workers, platform workers, and unorganized sector workers, ensuring comprehensive protection against risks such as old age, unemployment, sickness, and workplace injuries. The Code was enacted on September 28, 2020, and came into force on May 3, 2021, through a notification by the Central Government.
India's social security framework has evolved over several decades, with various laws enacted to address specific aspects of worker welfare. Key legislations prior to the 2020 Code included:
Employees' Provident Fund Act, 1952: Established a provident fund for employees in specified industries.
Employees' State Insurance Act, 1948: Provided health insurance and benefits to employees in certain sectors.
Maternity Benefit Act, 1961: Ensured paid leave and medical benefits for pregnant women employees.
Payment of Gratuity Act, 1972: Mandated gratuity payments to employees after five years of service.
Unorganized Workers' Social Security Act, 2008: Aimed at providing social security to unorganized sector workers but lacked comprehensive coverage.
These laws were fragmented and often limited in scope, leading to gaps in coverage, especially for informal sector workers. The Code on Social Security, 2020, was introduced as part of the government's labor reform initiatives to streamline and modernize labor laws, replacing the above-mentioned statutes with a unified framework.
The Code on Social Security, 2020, represents a transformative step towards creating an inclusive and comprehensive social security system in India. By addressing the limitations of previous laws and expanding coverage to vulnerable workers, it aims to safeguard the welfare of India's diverse workforce. However, its effectiveness will hinge on proactive implementation, stakeholder collaboration, and continuous evaluation to adapt to emerging needs.






