Why in news?

The Ministry of Labour and Employment has notified the constitution of two key bodies: the National Social Security Board (NSSB) for unorganised workers (40 members) and a separate NSSB for gig and platform workers (22 members).

Both boards are tasked with designing, monitoring, and recommending welfare schemes to bridge India’s long-standing social security gap for workers outside the formal employment structure.

What’s in Today’s Article?

• Background: The Code on Social Security
• Composition of the Boards
• Functions and Powers of the Boards
• The Social Security Fund: Who Pays, and for What?
• Expanded EPFO Coverage: A Major Structural Shift
• What Changes for Gig Workers Specifically?

Background: The Code on Social Security

• Notified last year (November 2025), alongside three other labour codes, the Code on Social Security merged nine existing social security laws to cover both organised and unorganised sectors.
• For the first time, the Code legally defined “gig workers” and “platform workers.”
• It mandated a national registration system and a dedicated social security fund for unorganised and gig workers.

Composition of the Boards

• National Social Security Board (Unorganised Workers) — 40 members:
  • Chairperson: Union Minister for Labour and Employment
  • Vice-Chairperson: Secretary, Ministry of Labour and Employment
  • Includes employee and employer representatives.
  • Nominated Members:
    • Unorganised sector workers: 7 representatives representing workers in the unorganised sector
    • Employers of unorganised sector: 7 representatives representing employers
    • Eminent persons from civil society: 7 representatives
    • Parliamentary representatives: 2 members representing the Lok Sabha and 1 member representing the Rajya Sabha (3 total)
    • Central Government Ministries and Departments: 10 members representing concerned central ministries and departments
    • State Governments: 5 members representing State Governments
    • Union Territories: 1 member representing the Union territories [1, 2]
• National Social Security Board (Gig and Platform Workers) — 22 members:
  • Union Labour Minister chairs it; Labour Secretary serves as Vice-Chairperson (same structure as the unorganised workers’ board).
  • Industry representation: Aggregators and quick-commerce operators like Eternal (Zomato’s parent), Zepto, Swiggy, and Urban Company.
  • Worker representation: BMS, the Indian Federation of App-Based Transport Workers (IFAT), and the National Front of Indian Trade Unions (NFITU).

Functions and Powers of the Boards

• As per the Code, the NSSB must meet at least thrice a year.
• Core mandate: Recommend that the Central government frame suitable schemes for different categories of unorganised, gig, and platform workers.
• Key Responsibilities
  • Monitor social welfare schemes for unorganised workers.
  • Review expenditure from the social security fund and its accounts.
  • Review record-keeping functions related to gig workers’ welfare schemes performed at the state level.
  • Advise the Central government on matters arising from administering the Code.
  • Undertake other functions as assigned by the Central government from time to time.

The Social Security Fund: Who Pays, and for What?

• The Code envisions a Social Security Fund for gig and platform workers, funded through:
  • Central and State government contributions.
  • Corporate Social Responsibility (CSR) funds.
  • Fines collected through compounding.
• Aggregator Contributions: Companies like Amazon, Flipkart, Swiggy, and Zomato must contribute 1-2% of their annual turnover to the fund — with total contribution capped at 5% of the amount payable to workers.
• Covered benefits the Centre may frame schemes for include:
  • Life and disability cover.
  • Accident insurance.
  • Health and maternity benefits.
  • Old age protection.
  • Crèche facilities.

Expanded EPFO Coverage: A Major Structural Shift

• EPFO (Employees’ Provident Fund Organisation) provisions now apply to all establishments with 20+ employees, regardless of industry type.
• Previously, EPFO applied only to establishments listed in Schedule 1 of the Act — primarily manufacturing sector entities.
• This restriction has been removed under the Code on Social Security, bringing both organised and unorganised sector workers under the social security umbrella.
• Schemes will be funded wholly or partly by Central/State governments or CSR contributions.

What Changes for Gig Workers Specifically?

• Gig and platform workers will receive social security cover for the first time in India’s labour history.
• Mandatory Registration: Platforms must work with the government to register all gig and platform workers.
• Technology Enabler: Registration will use an Aadhaar-linked Universal Account Number (UAN) — ensuring benefits remain portable across states, crucial given gig workers’ frequent inter-state mobility for work.
• Scale of Impact: As per NITI Aayog, India’s gig economy is projected to employ 2.35 crore (23.5 million) workers by 2029-30 — making this reform potentially transformative for a rapidly growing workforce segment.

Conclusion

The notification of these two Social Security Boards operationalises one of the most significant labour reforms in recent Indian history — extending formal social security protections to a workforce segment that has historically operated entirely outside such safeguards.

By mandating aggregator contributions, enabling portable Aadhaar-linked registration, and expanding EPFO coverage beyond manufacturing-sector limits, the Code addresses a genuine structural gap as India’s gig economy approaches a projected 2.35 crore workers by 2029-30.

However, the real test will lie in implementation — particularly ensuring that board composition remains genuinely representative of worker interests, and that the promised benefits translate into accessible, timely support for a workforce often characterised by precarious, fragmented employment.