Social Security Code 2020

Social security refers to the protection given to employees, including gig workers, unorganized workers, and platform workers, ensuring income security and access to health care, especially for the elderly, unemployed, and in cases of illness, disability, maternity, work injuries, or the loss of the sole earning member in a family.

Social security is ensured by rights given and schemes formed under the Social Security Code 2020.

Key Points under Social Security Code 2020

The Code used to cover a limited number of people, but now it has extended its umbrella to unorganized sector employees, freelance workers, migrant labourers, etc.

The registration of all the employees covered under the Social Security Code 2020 will be done through a portal that can be accessed using the internet. This is done to maintain a national database of workers under this Code. The registration process is quite simple, and self-certification must be done for any variation.

The records have to be mandatorily maintained electronically to maintain the documents easily.

Significance of Social Security Code 2020

A Social Security Fund will be created to implement organized finances and implement all kinds of schemes under the Social Security Code 2020.

When it comes to calculating earnings for social security payments, there is consistency. It has given wages a broad definition. Exclusions with ceilings have been included to discourage improper salary structures from reducing social security benefits.

It has resulted in the authorities taking a more accommodating stance. Unlike the current inspector function, the Code establishes an improved role of inspector-cum-facilitator, where companies can seek support and guidance to improve compliance. Several career centres will be established to take care of all the employment-related information and fulfill the role of a human resource professional.

A penalty of Rs. 1,00,000 is applicable if people who come under the Social Security Code 2020 fail to make deposits towards the employees' contributions. There might also be imprisonment of up to 3 years in such a situation. However, these penalties and punishments become more severe if the offence is repeated. Also, no compounding of penalties is required in such a case.

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Concerns related to Social Security Code 2020

There are several concerns related to the Social Security Code 2020.

Some of them are listed below:

• Informal employees are responsible for registering as beneficiaries and often lack digital literacy and connectivity.
• In addition, there is a shortage of awareness of social security programs among informal employees.
• India's unorganized employees can be found all around the country. The consequences of this Code would be too diverse between states to be implemented.
• The Centre-State procedural complexities and jurisdictional or institutional overlap make it difficult to provide comprehensive social security coverage for the unorganized labour straightforwardly and effectively.
• Women who work in the unorganized sector are not eligible for maternity benefits.

Future Prospects of Social Security Code 2020

Currently, the informal workers are not included in the social security laws, but now there have been attempts to merge these laws. This will also formalize all the universalization that is going to be implemented so that all the workers are included. This will bring a formalization in the workforce in the country.

The Social Security Code 2020 tries to cater to all the workers and employees who belong to the unorganized sector of India's economy. The Code is trying to create a unified system to manage this workforce quite well. This Code is quite essential from the exam's perspective.

FAQs on Social Security Code 2020

Q1. What is the primary purpose of Social Security Code 2020?

The Social Security Code 2020 is to formalize all kinds of the workforce in India.

Q2. Which are the two other codes passed along with the Social Security Code 2020?

The two other codes passed along with the Social Security Code 2020 are the Code on Occupational Safety, Health & Working Conditions Code 2020 and Industrial Relations Code, 2020.

Q3. How many regulations are covered under the Social Security Code 2020?

Nine regulations are covered under the Social Security Code 2020.

Q4. What is the objective of the Social Security Code 2020?

The Social Security Code 2020 consolidates the existing labour laws and expands the social security benefits to all kinds of employees.