Section 41: Social Security Schemes and Benefits

Overview

Section 41 of the Code on Social Security, 2020, deals with the framing of comprehensive social security schemes by the Central and State Governments specifically for unorganised workers, gig workers, and platform workers. Unlike traditional social security benefits tied to formal employment, this section aims to extend welfare measures to those working in the informal economy, offering a safety net covering various life stages and contingencies. These schemes aren’t limited to a single benefit like Provident Fund or ESI; they encompass a wide range of support, including life & disability cover, health benefits, and more.

Who is Covered?

• Unorganised Workers: This includes workers in the informal sector, such as those in agriculture, construction, and small businesses, who are not covered by traditional labour laws.
• Gig Workers: Individuals who perform work or services on a short-term, freelance, or on-demand basis, often through digital platforms.
• Platform Workers: Workers who are engaged through online platforms to provide specific services, like ride-hailing or food delivery.
• Eligibility Conditions: The Code doesn’t specify rigid eligibility criteria like length of service or wage limits. Scheme-specific eligibility will be defined by the Central and State Governments when they formulate the actual schemes. The focus is on extending coverage to those previously excluded.

Benefits and Contributions

• Benefits: The schemes can include a broad spectrum of benefits, such as:
  • Life and disability cover
  • Health and maternity benefits
  • Old-age protection (pension schemes)
  • Education assistance for children
  • Housing support
  • Skill development programs
  • Employment injury benefits
• Contributions: The Code doesn’t mandate a specific contribution structure. The contribution responsibilities of employers, employees, and the government will be determined when individual schemes are designed. It’s likely that schemes will involve a combination of contributions from these sources, or be entirely funded by the government.

Procedure and Compliance

Currently, the detailed procedures for registration, contribution, and claim settlement are not fully defined as they will be part of the rules framed under the Code. However, Section 41 emphasizes the use of digital platforms for benefit delivery and seamless portability of benefits across states. This suggests a streamlined, technology-driven approach to administration. Workers can likely expect online registration portals and digital benefit disbursement. Compliance will involve adherence to the specific rules of each scheme as and when they are notified.

Practical Examples

• Example 1: A gig worker delivering food through a platform becomes eligible for employment injury benefits after suffering an accident while on duty, as per the scheme rules. The claim is filed online through a dedicated portal, and benefits are directly credited to their account.
• Example 2: A State Government designs a scheme offering health benefits to unorganised construction workers. A construction worker who fails to register under the scheme is denied access to the health benefits when they require medical treatment. This highlights the importance of registration for accessing benefits.

Disclaimer

This article is for basic understanding of social security law and should not be treated as legal advice. The Code on Social Security, 2020, is a complex piece of legislation, and the specific details of schemes and benefits will be determined by the Central and State Governments through subsequent rules and notifications. Consult with a legal professional for advice tailored to your specific situation.