Labour Ministry to Rejig Draft Social Security Code

Labour Ministry to Rejig Draft Social Security Code

Dear Members,

The labour ministry will rework the draft social safety code once more, after the Prime Minister’s Workplace (PMO) pulled it up over the proposals that didn’t meet the target of unifying all social safety advantages underneath an umbrella scheme, a authorities official mentioned.

As per a report in Economic Times, The Ministry of Labour & Employment has formed a committee to rework the draft social security code following a directive from the Prime Minister’s Office (PMO).

According to the PMO, the third draft does not align with the government’s intent to move towards universal social security and it lacks vision and clarity. The proposed code proposes to merge the Employees’ Provident Fund Organisation (EPFO) and Employees’ State Insurance Corporation (ESIC) under a central body with a corporate-like structure. Though it proposes to extend the coverage of provident fund and ESI to temporary workers, it fails to outline a comprehensive scheme that would provide social security cover to all, according to industry sources.

The existing corpus is proposed to be split into numerous small funds, which could lead to multiplicity of authorities. Also, under the proposals, there will be no commitment on the government’s part of contribution, industry sources noted.

Source Credit: This news is first published on Economic Times.

Regards
Atul. R. Shah