National Social Security Boards for Unorganised and Gig Workers

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National Social Security Boards for Unorganised and Gig Workers

Source: The Indian Express

Syllabus: GS II: Welfare schemes, governance. GS III: Labour, inclusive growth

Why in news?

The Ministry of Labour and Employment has notified two bodies under the Code on Social Security: the National Social Security Board (NSSB) for unorganised workers (40 members) and a separate NSSB for gig and platform workers (22 members). Both are meant to design, monitor and recommend welfare schemes for workers outside the formal sector.

Background: the Code on Social Security

  • It was notified in November 2025 along with three other labour codes and merged nine existing social security laws.
  • It covers both organised and unorganised sectors.
  • It is the first law to define "gig workers" and "platform workers."
  • It mandates a national registration system and a dedicated social security fund for unorganised and gig workers.
  • Constitutional basis: Directive Principles, Articles 41 and 43. Earlier steps include the Unorganised Workers' Social Security Act 2008, the e-Shram portal (2021) and Rajasthan's 2023 Act on platform-based gig workers.

Composition

NSSB for unorganised workers (40 members)

  • Chair: Union Labour Minister. Vice-Chair: Labour Secretary.
  • Nominated members: 7 unorganised workers, 7 employers, 7 eminent civil society persons, 3 MPs (2 Lok Sabha, 1 Rajya Sabha), 10 central ministries and departments, 5 state governments and 1 Union Territory.

NSSB for gig and platform workers (22 members)

  • The same chair structure.
  • Industry: Aggregators such as Eternal (Zomato's parent), Zepto, Swiggy and Urban Company.
  • Workers: BMS, the Indian Federation of App-Based Transport Workers (IFAT) and the National Front of Indian Trade Unions (NFITU).

Functions and powers

  • Meets at least three times a year.
  • Core mandate: Recommend to the Centre suitable schemes for unorganised, gig and platform workers.
  • Monitors welfare schemes for unorganised workers.
  • Reviews spending from the social security fund and its accounts.
  • Reviews state-level record-keeping for gig workers' schemes.
  • Advises the Centre on administering the Code, and performs other assigned functions.

The Social Security Fund

·        Sources: Central and State contributions, CSR funds and fines collected through compounding.

·        Aggregator contribution: Platforms such as Amazon, Flipkart, Swiggy and Zomato pay 1-2% of annual turnover, capped at 5% of the amount payable to workers.

Benefits the Centre may frame schemes for: life and disability cover, accident insurance, health and maternity benefits, old-age protection and crèche facilities

 

Structural changes

  • EPFO expansion: EPFO now applies to all establishments with 20 or more employees, whatever the industry. Earlier it covered only Schedule I industries, mainly manufacturing.
  • Registration: Platforms must help register gig workers, using an Aadhaar-linked Universal Account Number (UAN). This makes benefits portable across states, which matters for mobile workers.
  • Scale: NITI Aayog projects 2.35 crore gig workers by 2029-30.

Challenges

  • Representation: Whether worker voices carry real weight against 10 central ministry seats and industry presence.
  • Enforcement: Collecting aggregator contributions and getting platform data on earnings and hours.
  • Fragmented work: Workers on several platforms, with irregular income, are hard to track.
  • Delivery: Whether benefits reach workers in a timely, accessible way.
  • Federal coordination: Overlap with state laws on gig workers.
  • Digital exclusion: Aadhaar-linked registration may leave out those with weak documentation or digital access.

Conclusion

The boards operationalise one of India's most significant labour reforms by extending social security to workers who were long outside it. Aggregator contributions, portable registration and wider EPFO coverage address a real gap, but the real test lies in implementation, representation and timely delivery.

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