The Code on Social Security, 2020 (English Text)

• For the first time, temporary and platform workers were recognized and a social security fund was established for their welfare.
• Strengthens women-centric provisions, including 26 weeks of maternity leave, work-from-home options, and crèche facilities.
• Promotes ease of doing business through digital records, resolving and settling minor violations instead of treating them as crimes, and a transparent, technology-driven inspector-cum-facilitator system.
• Establishment of a National Social Security Board, which will advise the government on formulating and monitoring appropriate schemes for various sections of workers in the unorganized, temporary, and platform sectors.
• Provision for a State Unorganized Workers Social Security Board, which will advise state governments on appropriate schemes for unorganized, temporary, and platform workers.
• Creation of a social security fund, which will be funded by contributions from the central and state governments, funds collected through corporate social responsibility (CSR), and fines. This fund will be used to provide benefits such as life insurance, disability cover, health and maternity benefits, and provident fund schemes for these workers.

Introduction
The Code on Social Security, 2020 represents a significant reform in India's labor welfare framework, aiming to ensure comprehensive and inclusive social security for all sections of the workforce. It provides equal coverage to organized, unorganized, temporary, and platform workers.
Employee-Friendly Provisions
1. Gratuity for Fixed-Term Employees
The government has reduced the eligibility period for gratuity for fixed-term employees (FTEs) from five years to one year. In cases where an employee completes one year of continuous service, gratuity will be applicable on a pro-rata basis.
2. Inclusion of Temporary and Platform Workers
For the first time in the country, social security benefits have been extended to unorganized, temporary, and platform workers.
3. Universal Coverage under EPFO

• The Code on Social Security, 2020 expands the coverage of the Employees' Provident Fund (EPF), making its provisions applicable to all establishments with 20 or more employees, regardless of the type of industry.
• The provident fund system will now cover more workplaces and more employees, allowing a larger number of workers to access social security benefits such as retirement savings. Now that the implementation issue has been resolved, it will also reduce litigation.

4. National Registration and Unique Identification
The government will create a national database of unorganized workers to facilitate the design and delivery of social security benefits for specific worker groups. All unorganized, temporary, and platform workers will be required to register themselves on the national portal, after which each worker will receive a Unique Identification Number (UID). This will be Aadhaar-verified and valid across the country.
5. Uniform Definition of “Wages”

• A standardized definition of “wages” will be followed across all labor laws for social security purposes. According to the Code, “wages” include basic wages, dearness allowance, and retaining allowance (allowance paid for remaining at the workplace), if any.
• If other payments such as bonus, rent allowance, transportation allowance, overtime allowance, or commission exceed 50% (or a percentage notified by the government) of the total remuneration, the excess amount will be added to the salary.
• This will increase the salary amount and consequently increase the value of social security benefits such as gratuity, pension, and leave salary, which are linked to the salary.

6. Expanded Definition of “Family”
The Code expands the definition of “family” to include the mother-in-law and father-in-law (subject to income limits) of a female employee. It also includes a minor unmarried brother or sister who is wholly dependent on the insured person in the absence of parents. This expansion will increase the coverage of family members eligible for ESIC benefits.
7. Accidents occurring while commuting to and from work are now covered under workers' compensation.

• Previously, accidents occurring while an employee was commuting to and from work were not considered work-related, and the employee or their family was not entitled to compensation.
• The Social Security Code, 2020 has changed this. Now, any accident occurring while commuting to and from work will be considered an "accident occurring in the course of employment."
• In such situations, affected employees or their families can receive compensation or ESIC benefits.

8. Expansion of ESIC Coverage

• Previously, ESIC coverage was limited to only certain notified areas. Under the Code, this restriction has been removed, extending ESIC coverage to the entire country.
• Furthermore, voluntary ESIC membership is also permitted for establishments with fewer than 10 employees, if both the employer and employee agree to join.
• The minimum limit of 10 employees has been removed for hazardous or life-threatening occupations. ESIC coverage is mandatory even for a single employee engaged in such work. If the employer so desires, ESIC benefits can also be extended to plantation workers.

Women-Friendly Provisions
1. Eligibility for Maternity Benefits
Every female employee who has worked for at least 80 days within the 12 months preceding the expected delivery will be eligible for maternity benefits equal to her average daily wage during the leave period.
The maximum duration of maternity leave is 26 weeks, of which a maximum of 8 weeks can be taken before delivery.
A woman who adopts a child under 3 months of age or is a commissioning mother (a biological mother using surrogacy) will receive 12 weeks of maternity benefits from the date of adoption or the date the child is delivered to her.
2. Work from Home

• To provide greater flexibility to women returning after maternity leave, the Code allows them to work from home if the nature of their work permits it.
• The employer may allow work from home based on mutual agreement between the employer and the employee.

3. Simplified Certificates for Proving Delivery, Etc.
Proof of maternity-related conditions such as pregnancy, childbirth, miscarriage, or related illness has been simplified under the Code. Medical certificates can now be issued by:

• Registered Medical Practitioners
• Accredited Social Health Activists (ASHA workers)
• Qualified Auxiliary Nurse Practitioners
• Midwives

4. Medical Bonus
If the employer does not provide free prenatal and postnatal care, a female employee will be eligible for a medical bonus of ₹3,500.
5. Breastfeeding Leave
Upon returning to work after delivery, a female employee is entitled to two breastfeeding breaks daily to breastfeed her child until the child reaches 15 months of age.
6. Creche Facility
Every establishment with 50 or more employees must provide a creche facility within a prescribed distance. This provision is now gender-neutral and applies to all types of establishments.