Section 40: Definition and Registration of Unorganised, Gig and Platform Workers

Overview

Section 40 of the Code on Social Security, 2020, lays the foundation for extending social security benefits to a significant portion of the Indian workforce previously excluded from traditional schemes – namely, unorganised workers, gig workers, and platform workers. This section doesn’t deal with a single benefit like Provident Fund or ESI, but rather establishes a framework for accessing a range of benefits including insurance, pension schemes, maternity benefits, and accidental coverage. It aims to provide a safety net for those working outside the formal employment structure.

Who is Covered?

• Unorganised Workers: This includes workers in the informal sector who are self-employed or wage workers, not covered by any other social security legislation. Examples include street vendors, construction workers, and domestic workers.
• 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, such as ride-hailing, food delivery, or content creation.
• Eligibility: The primary eligibility condition is being classified as one of the above worker types. Registration is key to accessing benefits. There are no specified length of service or wage limits mentioned in the section itself; eligibility for *specific* benefits will be determined by the rules framed under the Code.

Benefits and Contributions

• Benefits: Registered workers become eligible for various social security schemes offered by the Central and State Governments. These include life and health insurance, pension schemes, maternity benefits, disability cover, and accidental death benefits. The specific benefits available will be detailed in rules framed under the Code.
• Contributions: The Code allows for a flexible contribution structure. Both the Central Government and State Governments may contribute towards these schemes. The extent of employer and employee contributions (if any) will be determined by the specific schemes and regulations developed under the Code. The section itself does not prescribe fixed contribution percentages.

Procedure and Compliance

The process for accessing benefits under Section 40 revolves around digital registration:

1. Registration: Workers must register themselves through an online portal using Aadhaar-based authentication.
2. Data Linking: The registration process links workers to national and state social security schemes.
3. Benefit Access: Once registered, workers can apply for and access eligible benefits through the designated portals and processes established by the government.
4. Government Responsibility: The Central and State Governments are responsible for developing and implementing the schemes, establishing the registration portal, and ensuring effective delivery of benefits.

Practical Examples

• Example 1: A food delivery rider working for a platform registers on the government portal using their Aadhaar number. They become eligible for the Pradhan Mantri Suraksha Bima Yojana (PMSBY) providing accidental death and disability cover, and can also access state-run health insurance schemes.
• Example 2: A construction worker, previously unregistered, registers on the portal. The government identifies them as eligible for benefits under the Construction Workers Welfare Fund, providing access to financial assistance for education, marriage, and other needs. Failure to register by the worker means they remain outside the scope of these 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 specific interpretations may vary. Consult with a legal professional for advice tailored to your specific situation.