SOCIAL SECURITY CODE, 2020

Sept. 23, 2020

Lok Sabha passed the Social Security Code, 2020.

Salient Features:

  • Extending the reach of Employees' State Insurance Corporation (ESIC): Effort have been made to provide right to health security under ESIC to maximum possible workers:-
    • The facility of ESIC would now be provided in all 740 districts. At present, this facility is being given in 566 districts only.

    • Establishments working in hazardous sectors would mandatorily be linked with ESIC, even if there is only one worker working in it.

    • Provision for making scheme for linking unorganised sector and Gig workers with ESIC.

    • Option to link workers working in Plantations is being given to Plantation owners.

    • Option for becoming member of ESIC is also being given to establishments with less than 10 workers.



  • Extending the reach of Employees' Provident Fund Organisation (EPFO):
    • EPFO’s coverage would be applicable on all establishments having 20 workers. At present, it was applicable only on establishments included in the Schedule.

    • Option to join EPFO is also being given to establishments having less than 20 workers.

    • Schemes would be formulated for bringing workers coming under the category of ‘Self-employed’ or falling under any other category under the aegis of EPFO.



  • Provision has been made to formulate various schemes for providing comprehensive social security to workers in unorganised sector. A “Social Security Fund” will be created on the financial side in order to implement these schemes.

  • Work to bring newer forms of employment created with the changing technology like “platform worker or gig worker” into the ambit of social security has been done in the Social Security Code.

  • Provision for Gratuity has been made for Fixed Term Employee and there would not be any condition for minimum service period for this.