Why it is in news?

• The central government is readying the blueprint for a social security scheme that is specifically aimed as a safety net for workers in the informal labour sector.
• The draft social security code, drafted by the Ministry of Labour & Employment, aims for universal coverage that includes those who are outside the ambit of the EPFO and the ESIC.
• The scheme envisages mandatory pension, insurance against disability and death, and maternity coverage, alongside optional medical and unemployment coverage.
• At the present moment, in both EPFO and ESIC, the employer contributes and equal amount is contributed by the employee also.

The draft code

• The draft code on social security has been placed on the ministry’s website for public comments.
• Amid opposition from trade unions, the government so far has only been able to introduce the Code on Wages Bill in Lok Sabha last August.
• The Code on Wages, which proposes a national minimum wage, amalgamates provisions of the four labour laws of The Minimum Wages Act, 1948; The Payment of Wages Act, 1936; The Payment of Bonus Act, 1965, and The Equal Remuneration Act, 1976.
• The draft code on social security has been placed on the ministry’s website for public comments.
• The government is in the process of finalisation of Code on Industrial Relations Bill, which combines The Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947.
• Labour unions have, however, objected the proposed amendment in the bill to allow units with up to 300 workers to retrench, lay off or close down without the permission of the government as against the present limit of 100 workers.
• According to the survey conducted by the National Sample Survey Organization (NSSO) in 2011-12, about 83 per cent or 39.14 crore persons out of total 47.41 crore employed persons were employed in unorganised sector.
• The organised sector is already covered through social security legislations like the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and the Employees State Insurance Act, 1948, while the labour law coverage for unorganised sector is lacking in the country.