Social Security on Fast Track

The government has stepped up work on the draft Labour Code on Social Security. Once in force, the code will benefit at least 50 crore workers ranging from domestic helpers to factory employees. Currently, about six crore employees in the organised sector enjoy social security benefits such as PF and health insurance. The proposed code will amalgamate 15 labour laws that govern PF, state insurance schemes and social security for the unorganised sector.

While the move will serve as an effective campaign tool in an election year, the corporate sector is likely to welcome it as the proposed restructuring provides more scope for private participation. For instance, the draft suggests allowing private insurance firms and the right to choose fixed-term contract hiring over permanent jobs. If it can keep both corporate and labour unions happy, it will be a win-win situation.

Joe C. Mathew