Suboptimal outcomes

Why in the News

A year after the Code on Social Security, 2020 came into force, its two national Boards for unorganised workers and for gig and platform workers are in place, but only the Union Government controls them. The editorial argues that this centralised design, with the Union Labour Minister in the chair, limits their outcomes, since Labour is a shared Union and State subject and the Boards give little voice to most trade unions or to Opposition ruled States.

What do the Social Security Boards do?

1. Social Security Code: The Code merges nine older worker welfare laws into one. It gives gig and platform workers, who earn through apps and not a regular employer, legal recognition for the first time.
2. Role of a Board: Each Board works like a standing expert committee for one group of workers. It designs, monitors and recommends welfare schemes, and advises the Union Government, which also prescribes its procedural rules.
3. Social security: The International Labour Organization (ILO) defines it as protection for health care and income security in old age, unemployment, sickness, work injury, maternity or loss of a breadwinner.
4. The takeaway: The Boards recommend which schemes reach workers outside regular jobs, so who sits on them shapes who is protected.

How are the Boards built?

1. Control: The Union Government nominates the members, and the Union Labour Minister chairs both Boards. The Union Labour Secretary is the Vice Chairman.
2. Seats: Members include unions, employers, civil society groups, Central and State officers, and aggregators (firms that run gig apps) such as Eternal (formerly Zomato), Swiggy, Zepto, Urban Company and Rapido.
3. Union and employer seats: The Bharatiya Mazdoor Sangh (BMS) holds three union seats and Laghu Udyog Bharati holds three employer seats. Both are linked to the Rashtriya Swayamsevak Sangh (RSS).
4. Missing voices: Most of the 12 trade unions the Government recognises, such as the Centre of Indian Trade Unions (CITU) and the All India Trade Union Congress (AITUC), have no representative.
5. State officers: Five States supply them: Maharashtra, Uttar Pradesh, West Bengal, Andhra Pradesh and Gujarat, all ruled by the National Democratic Alliance (NDA).

Does centralised control weaken the Boards?

1. Concurrent List: Labour is a subject on which both the Union and the States can legislate, so both must work together for workers.
2. Left out States: Boards with no Opposition ruled State leave part of that partnership out.
3. Union’s defence: The Labour Ministry calls the Boards a “historic shift” and says they bring digital gig and platform professionals into formal welfare.
4. Trade union objection: The AITUC says the Boards lean heavily towards the Union Government and are filled with unions and employers close to the Bharatiya Janata Party (BJP).

Does the Union’s coverage claim hold up?

1. Union’s claim: The Union Government says social security coverage has risen from under a fifth in 2015 to almost two thirds in 2025.
2. ILO test: Under the ILO definition, unorganised, gig and platform workers, over 92% of the workforce, are not covered.
3. Unfinished advice: Almost two decades ago, the National Commission for Enterprises in the Unorganised Sector (NCEUS), headed by Arjun Sengupta, made recommendations that remain unaddressed.
4. Keralam report: A report by Justice V. Gopala Gowda for the Keralam Government in March 2026 flagged anti federal and anti worker features in the Code and suggested amendments.

Challenges

1. Advisory role: The Boards recommend and advise, so their weight depends on how far the Union accepts their advice.
2. Missing protections: The Code does not guarantee gig workers a minimum wage, fixed hours or paid leave, so Board schemes alone leave that gap open.
3. Pending rules: Detailed Central and State rules under the labour codes are still being finalised, so benefits reach workers unevenly.

Way Forward

1. Wider membership: Add seats for Central trade unions of every affiliation and for Opposition ruled States, as the editorial urges.
2. Sengupta advice: Take up the NCEUS recommendations that remain unaddressed.
3. Code amendments: Examine the amendments the Keralam report proposed to remove anti federal and anti worker features.
4. Portable benefits: Give each worker a digital social security card that works across aggregators.

Conclusion

Statutory machinery for unorganised and gig workers now exists, but its worth depends on whether the Union shares control with States and unions. Watch who is added to the Boards.

Key numbers

1. Unorganised Workers Board: 40 members, 7 worker and 7 employer representatives.
2. Gig and Platform Workers Board: 22 members, 5 aggregator and 5 worker representatives.
3. Coverage claim: 19% (2015) to 64.3% (2025), about 94 crore people, per the Union Government.

Matching Previous Year Question

“[2024, GS3, 15 marks] Discuss the merits and demerits of the four ‘Labour Codes’ in the context of labour market reforms in India. What has been the progress so far in this regard?”