National Social Security Boards for Unorganised and Gig Workers: Powers, Functions and Significance

Why in News?

• The Ministry of Labour and Employment has notified the constitution of two National Social Security Boards (NSSBs) for unorganised workers and gig/platform workers on October 30, 2026.
• The boards will recommend, design and monitor social security and welfare schemes to strengthen social protection for workers in India's unorganised and emerging gig economy.
• The National Social Security Board for unorganised workers will have 40 members, while the board for gig and platform workers will have 22 members. Both boards will be chaired by the Union Minister for Labour and Employment.

What are the National Social Security Boards?

• The National Social Security Boards are statutory institutional mechanisms established under the Code on Social Security, 2020, to advise the Central Government on social security measures for unorganised, gig and platform workers.
• Their primary objective is to address the social security gap faced by workers who often lack access to formal employment benefits such as health insurance, provident fund, pension and accident protection.
• The boards will include representatives from the government, employers, workers' organisations and other relevant stakeholders.

Composition of the Boards:

• Board for Unorganised Workers: Consists of 40 members, including representatives of employees, employers, government departments and Parliament.
• Board for Gig and Platform Workers: Consists of 22 members, including representatives of the government, gig workers' organisations and digital platform aggregators.
• Chairperson: Union Minister for Labour and Employment.
• Vice-Chairperson: Labour Secretary.

The representation of organisations such as Bharatiya Mazdoor Sangh (BMS), Indian Federation of App-Based Transport Workers (IFAT), Zomato's parent company Eternal, Swiggy, Zepto and Urban Company reflects the participation of workers' organisations and platform companies.

What are the Powers and Functions of the Social Security Boards?

The boards will perform advisory, monitoring and review functions to strengthen social security coverage.

Major functions include:

1. Recommendation of Welfare Schemes: Advise the Central Government on framing suitable social security schemes for unorganised, gig and platform workers.
2. Monitoring Implementation: Monitor the implementation of social welfare schemes and assess their effectiveness.
3. Review of Social Security Funds: Review expenditure from the Social Security Fund and examine its utilisation.
4. Policy Recommendations: Advise the Central Government on matters relating to the administration of the Code on Social Security, 2020.
5. State-Level Monitoring: Review record-keeping functions related to gig workers' welfare schemes performed at the state level.
6. Regular Meetings: The boards are required to meet at least three times a year.

Important: The boards primarily perform advisory, monitoring and review functions. The responsibility for framing and implementing welfare schemes rests with the appropriate government authorities.

What Social Security Benefits Will Workers Receive?

Under the Code on Social Security, 2020, the government can introduce welfare schemes covering several important areas.

Major areas of social security protection include:

• Life and Disability Cover: Financial protection against death and disability.
• Accident Insurance: Protection against occupational and other accidents.
• Health Benefits: Access to healthcare and medical protection.
• Maternity Benefits: Financial and social support during maternity.
• Old-Age Protection: Measures to provide financial security after retirement.
• Crèche Facilities: Childcare facilities for eligible workers.

These benefits aim to reduce the economic vulnerability of workers who are often excluded from traditional social security arrangements.

Social Security Fund for Gig and Platform Workers

The Code on Social Security, 2020, provides for the creation of a Social Security Fund to finance welfare measures for gig and platform workers.

Contribution by Aggregators:

• Digital platforms and aggregators such as Amazon, Flipkart, Swiggy and Zomato will contribute 1–2% of their annual turnover towards the Social Security Fund.
• The contribution will not exceed 5% of the amount paid or payable to gig and platform workers by the aggregator.

Other Sources of Funding:

• Contributions from the Central Government.
• Contributions from State Governments.
• Corporate Social Responsibility (CSR) contributions.
• Fines collected through compounding and other permitted sources.

The fund is intended to provide financial support for social security schemes covering gig and platform workers.

Aadhaar-Linked Universal Account Number (UAN)

A national registration system will help identify and register gig and platform workers so that they can access applicable social security benefits.

Key Features:

• Registration of gig and platform workers through an Aadhaar-linked Universal Account Number (UAN).
• Creation of a national database of eligible workers.
• Portability of social security benefits across states.
• Improved identification and delivery of welfare benefits.

Significance: Gig workers frequently migrate between cities and states in search of employment. A portable social security identification system can help them access eligible benefits even when their place of work changes.

Expansion of EPFO Coverage

• The Code on Social Security, 2020, also expands the coverage of the Employees' Provident Fund Organisation (EPFO).
• Under the new framework, EPF-related provisions apply to establishments employing 20 or more employees, irrespective of their industry, subject to the applicable statutory provisions.
• Earlier, coverage was linked to establishments specified under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and its scheduled categories.
• This expansion aims to extend formal social security coverage to a wider range of establishments and employees.

Significance of the National Social Security Boards

1. Inclusive Social Protection: The boards can help extend social security to workers who have traditionally remained outside formal welfare mechanisms.
2. Recognition of Gig Economy: The institutional framework recognises the changing nature of employment and the growing importance of platform-based work.
3. Financial Security: Benefits relating to health, accidents, maternity, disability and old age can reduce the financial vulnerability of workers.
4. Portability of Benefits: Aadhaar-linked UAN registration can facilitate access to social security benefits across different states.
5. Strengthening Labour Welfare: Participation of workers, employers and government representatives can improve policy formulation and implementation.
6. Support for Inclusive Growth: Better social protection can improve workers' economic security, productivity and quality of life.
7. Formalisation of Employment: Registration and digital databases can improve the identification and coverage of workers in the informal economy.

Major Challenges

Despite the institutional framework, several challenges may affect the effective delivery of social security benefits.

• Identification of Workers: Gig workers frequently change platforms and employment arrangements, making their identification and registration difficult.
• Funding Challenges: Adequate and regular contributions to the Social Security Fund will be essential for its long-term sustainability.
• Implementation Gaps: Coordination between the Central Government, State Governments and platform companies may create administrative challenges.
• Lack of Awareness: Many unorganised and gig workers may not be aware of their eligibility and available benefits.
• Digital Exclusion: Workers without access to digital services or adequate documentation may face difficulties in registration.
• Irregular Employment: Fluctuating earnings and multiple platform engagements make the assessment of social security contributions complicated.
• Accountability of Aggregators: Ensuring timely and transparent contributions by platform companies will require effective monitoring.

Way Forward

1. Universal Registration: Develop a simple and accessible registration mechanism to bring all eligible unorganised and gig workers under the social security framework.
2. Strengthening Institutional Coordination: Improve coordination between Central and State Governments, welfare boards and digital platforms.
3. Transparent Fund Management: Establish effective auditing, monitoring and reporting mechanisms to ensure proper utilisation of the Social Security Fund.
4. Awareness Campaigns: Conduct awareness programmes through digital platforms, local bodies and workers' organisations.
5. Portable Social Security: Ensure that benefits remain accessible to workers even when they migrate or change employment platforms.
6. Effective Grievance Redressal: Establish accessible mechanisms to resolve workers' complaints relating to registration, contributions and benefit delivery.
7. Periodic Assessment: Regularly evaluate the effectiveness of welfare schemes and modify them according to changing employment patterns.

Conclusion

• The constitution of National Social Security Boards represents an important institutional step towards strengthening social protection for India's unorganised and gig workforce. 
• At a time when platform-based employment is expanding rapidly, social security must evolve beyond traditional employer-employee relationships.
• Effective implementation of the Code on Social Security, 2020, adequate financial contributions, transparent fund management and portable welfare benefits will be essential to ensure that economic growth translates into inclusive and secure employment.

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