Social Security Code (SS Code) 2020 The effectiveness of th | Judiciary UP

Social Security Code (SS Code) 2020

The effectiveness of the Social Security Code (SS Code) 2020 in helping the informal workforce is questioned by many.

With SS Code 2020, two other codes were passed which are Code on Occupational Safety, Health & Working Conditions Code, 2020 and Industrial Relations Code, 2020.

The SS Code 2020 subsumes nine regulations relating to social security, retirement and employee benefits.

Important Points

Major Provisions of SS Code 2020:

Enhanced Coverage:

The Code has widened coverage by including the unorganised sector, fixed term employees and gig workers, platform workers, inter-state migrant workers etc.

National Database and Registration:

With the aim of making a national database for unorganised sector workers, registration of all these workers would be done on an online portal and this registration would be done on the basis of Self certification through a simple procedure.

All records and returns have to be maintained electronically.

Social Security Fund:

It will be created on the financial side in order to implement social security schemes.

Uniform Definitions:

There is uniformity in determining wages for the purpose of social security benefits.

It has provided a wide definition for wage.

Specific exclusions with ceilings have been provided for discouraging inappropriate structuring of salaries to minimise social security benefits.

Consultative Approach:

It has brought in a facilitating approach by the authorities. Unlike the existing role of inspectors, the Code provides for an enhanced role of inspector-cum-facilitator whereby employers can look for support and advice to enhance compliances.

Career Centre:

To enable that demand for human resources is met and to monitor employment information, career centres will be established.

Stringent Penalties:

Any failure to deposit employees’ contributions not only attracts a penalty of Rs. 1,00,000, but also imprisonment of one to three years. In case of repeat offence, the penalties and prosecution is severe, and no compounding is permitted for repeated offences.

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