India: Draft Social Security Code: what does it mean for unorganized workers and domestic workers

The Indian Government is in the process of replacing 44 labour laws by 4 codes namely Wage Code, Industrial Relations Code, Social Security Code, Occupational Health and Safety Code. All four Codes were meant to simplify the existing Labour laws, but end up watering down workers’ rights, in order to promote ease of doing business. 

The Social Security Code would replace 15 existing Social Security Acts. The main problem for NDWM is that it interferes with all the existing Welfare Boards. There will be only one single Social Security Board for both organized and unorganized workers in every state. This would make the numbers dealt with by this Board huge and very difficult to manage.  Deductions towards the Social security Fund would be 12.5 % from workers and 17.5 % from employers, which would seriously affect unorganized labour. 

All aspects of Social security operations would be privatized between four different agencies dealing with registration, benefits, fund management, and records. The composition of the Boards has done away with the tripartite arrangement in the earlier Labour laws in which trade unions were also involved. Instead, the decision making of these Boards would be heavily dominated by the Central and State Governments, as even the workers representatives in these committees will be nominated by the Government. Hence, this code would be undemocratic and unsuitable to represent the voice of unorganized labour. 

It was thus deemed important to organize the workers and create awareness about the Code and launch a signature campaign in support of their stand and also contact opposition Members of Parliament and the petitions Committee of the Lok Sabha, so that the bill is sent to a Standing Committee for review. Petitions also have to be sent to State MPs and Government officials, as many of the powers of the State are being reduced.

This article is based on a session organised by NDWM in Chennai in July 2018 on Social Security code facilitated by Ms. Geetha from the Unorganised Workers’ Federation.