Lok Sabha Question No. 3745 (UNSTARRED), answered on 2026-03-16
Subject: Funding under Code on Social Security, 2020
Ministry: LABOUR AND EMPLOYMENT
Asked by: Shri Maddila Gurumoorthy

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA UNSTARRED QUESTION NO. 3745 TO BE ANSWERED ON 16.03.2026

## FUNDING UNDER CODE ON SOCIAL SECURITY, 2020

3745. SHRI MADDILA GURUMOORTHY:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)whether  the  Government  has  finalised  a  sustainable  funding framework under the Code on Social Security 2020 to ensure timely payment of benefits to the beneficiaries, particularly for unorganised, gig and platform workers;
- (b) if so, the details thereof;
- (c)  whether  any  mechanisms  have  been  put  in  place  to  mandate contributions  from  aggregators,  principal  employers  and  State Governments  to  prevent  diversion  or  under-utilisation  of  social security funds; and
- (d) if so, the details thereof including audit mechanisms, disclosure norms,  penalties  for  defaulting  employers  or  aggregators  and safeguards proposed to ensure transparency, fiscal accountability and long-term viability of social security schemes under the said Code?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SUSHRI SHOBHA KARANDLAJE)

(a) to (d): The Code on Social Security, 2020 has come into force on 21.11.2025 with the objective to consolidate and simplify the existing social  security  laws  into  a  single  framework  and  to  extend  social security coverage to all workers, including organised, unorganised, gig,  platform,  and  self-employed  workers,  by  ensuring  universal access to social security benefits, promoting portability of benefits across  employments  and  States,  enabling  the  Central  and  State Governments to frame appropriate schemes, leveraging technology for efficient delivery and clearly defining the roles of Governments, employers and aggregators.

The Code provides for framing of suitable welfare schemes for unorganised workers on matters relating to-

- (i) life and disability cover;
- (ii) health and maternity benefits;
- (iii) old age protection;
- (iv) education; and
- (v) any other benefit as may  be  determined by the Central Government.

Similarly, the code also provides for framing of suitable social  security  schemes  for  gig  workers  and  platform  workers  on matters relating to-

- (a) life and disability cover;
- (b) accident insurance;
- (c) health and maternity benefits;
- (d) old age protection;
- (e) crèche; and
- (f) any other benefit as may  be determined by the Central Government.

Further, Code provides for constitution of National Social Security Board for Unorganised workers, Gig workers and Platform workers to exercise the power conferred on and to perform functions assigned to it.

Code also provides for establishment of a Social Security Fund for social security and welfare of the unorganised workers, gig workers  and  platform  workers  and  the  sources  of  the  fund  shall comprise of funding received-

- a)
- any scheme wholly funded by the Central Government;
- b)
- c)
- partly funded by the Central Government and partly funded by the State Government; or
- wholly funded by the contributions of the aggregators; or
- d) from the composition of the offences under this Code relating to Central  Government  and  from  any  other  Social  Security  Fund established under any other Central labour law.
- e) The contribution to be paid by the aggregators shall be at such rate not exceeding two per cent., but not less than one per cent., as may be notified by the Central Government, of the annual turnover of every such aggregator who falls within a category of aggregators.
- f)
- any other source.

For  the  first  time,  the  definition  of  'gig  workers'  and 'platform  workers'  and provisions  related  to  the  same  have  been provided in the Code on Social Security, 2020 which has come into force on 21.11.2025.

The Code provides for offences and penalties in cases of failure on the part of the employer to pay contributions.

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