The Code on Social Security, 2020 is a major reform in India that consolidates nine existing labor laws into a single framework to expand social security to all workers, including those in the organized, unorganized, gig, and platform sectors. Its main goals include universalizing social protection by extending benefits like EPF, ESIC, and maternity leave to more workers, establishing a new social security fund for gig and platform workers, promoting women’s participation in the workforce, and simplifying compliance for employers.

Universal coverage:

It aims to extend social security to all employees, regardless of sector, including the unorganized, gig, and platform sectors.

Consolidation of laws:

The Code merges nine existing social security laws into a single, streamlined framework to simplify compliance for businesses and access for workers.

New fund for gig and platform workers:

It recognizes gig and platform workers for the first time and creates a Social Security Fund for their welfare.

Enhanced maternity benefits:

It strengthens provisions for women, including 26 weeks of maternity leave and the option for work-from-home.

Creche facilities:

Establishments with 50 or more employees are required to provide crèche facilities.

Extended eligibility for gratuity:

It expands eligibility for gratuity to fixed-term employees and working journalists after three years of service.

Simplified compliance:

It introduces measures to simplify compliance, such as digital records, decriminalization of certain offenses, and a transparent, technology-driven inspector system.