Labor Ministry: Daily wage workers too get social security benefits like pension and insurance benefits

New Delhi| Like employees in organized sectors, now daily wage workers will also come under the ambit of social security. The Government is soon preparing to introduce a social security contribution system for these people. Platforms employing these workers must deduct a fixed portion of their payments and submit them to the Employees’ Pension Scheme. In lieu of this, the government can contribute an additional 3 to 4 per cent of the amount deposited.

According to a report, the initiative not only involves employees of food delivery and ride-hailing platforms, but also software professionals and other employees. Social security provisions for day workers were included in the Labor Code that was enacted a few years ago. However, these codes have not been implemented yet, as many states have not yet aligned with them.

Center cooperating with states to advance labor codes
Daily wage workers work on multiple platforms simultaneously. Paying institutions can easily deduct and deposit the prescribed amount with the Employees Provident Fund Organization. A senior Labor Ministry official said, we are finalizing the details. It is expected that it will be implemented soon. The Center is collaborating with states to advance labor codes.

Labor Minister Mandaviya had given the suggestion
The Social Security Code contains provisions for establishing a social security fund. Health, accident and other benefits are available in this. A few months ago, Labor Minister Mansukh Mandaviya had suggested that the implementation of social security for daily wage workers could be preceded by the full implementation of the labor code. A panel has been constituted for this.

Many states have already made the announcement
Providing social security for day workers has become a major priority of the government. The lack of adequate protection has been highlighted in a number of surveys. The Labor Ministry is also linking up with platforms to extend the benefits of existing schemes, such as Ayushmann Bharat and accident-life insurance, to gig workers. Some states have already announced measures to ensure social security.