The Union Labour Ministry, a year after the Code on Social Security came into force, has created two National Social Security Boards: one for unorganised sector workers and another for gig and platform workers. While the move fills a long‑standing gap, the boards are heavily centralised, with the Union Minister for Labour, Mansukh Mandaviya, as chair, raising concerns about federal balance and worker representation.
Key Developments
- Board for Unorganised Sector Workers: 40 members, all nominated by the Union Government; includes 7 worker representatives and 7 employer representatives.
- Board for Gig and Platform Workers: 22 members; includes 5 representatives each from aggregators and workers.
- No representation from opposition‑led Central Trade Unions or opposition‑run State Governments.
- Both boards operate under the Union’s direct control, reflecting a highly centralised design.
Important Facts
The International Labour Organization defines social security as protection that ensures health care access and income security in cases such as old age, unemployment, sickness, injury, maternity, or loss of a breadwinner. The Union Government claims that social security coverage has risen from 19% in 2015 to 64.3% in 2025, covering roughly 94 crore citizens. However, more than 92% of India’s workforce—mainly unorganised and gig workers—remain outside this safety net.
Two decades ago, the National Commission for Enterprises in the Unorganised Sector, led by economist Arjun Sengupta, recommended a suite of measures to extend social security to informal workers. Those recommendations are still largely unimplemented. A recent report by Justice V. Gopala Gowda for the Kerala Government highlighted anti‑federal and anti‑worker features in the Code on Social Security and suggested amendments.
Exam Relevance
Understanding the structure and jurisdiction of these boards touches upon several UPSC topics:
- Concurrent List dynamics: Labour is a concurrent subject, requiring cooperation between Centre and States.
- Federalism and centre‑state relations: The lack of state and opposition representation raises questions about cooperative federalism.
- Social security and welfare economics: The gap between reported coverage and actual inclusion of informal workers illustrates policy‑implementation challenges.
- Labour market transformations: The rise of Gig and Platform Workers demands new regulatory frameworks.
Way Forward
For the boards to be effective and constitutionally sound, the Union should:
- Invite participation from opposition‑led Central Trade Unions and state governments, ensuring a truly federal structure.
- Expand the definition of beneficiaries to explicitly include unorganised and gig workers, aligning with the ILO’s social security concept.
- Set up a monitoring mechanism with clear performance indicators to track coverage growth beyond headline figures.
- Incorporate recommendations of the Sengupta Commission and the Gowda report, especially regarding pension, health insurance, and grievance redressal for informal workers.
Only with broader representation and concrete implementation steps can India move towards inclusive social security for its vast informal workforce.