Labour Codes: #11 Social Security Board Under The Labour Codes

With the introduction of India's four new labour codes, the regulatory landscape for employment law is undergoing a transformation. One of the most forward-looking aspects of this change is the creation of Social Security Board under the Code on Social Security, 2020 – bringing structure, expertise, and representation into core labour policymaking and enforcement.

Social Security Boards – Code on Social Security, 2020

To enable structured governance and implementation, the Code on Social Security, 2020 ("Code") talks about establishment of National and State-level Social Security Boards with broad-based representation and clearly defined mandates.

I. National Social Security Board (Section 6 of the Code)

The National Social Security Board is constituted by the Central Government to advise on and oversee welfare schemes for unorganised sector workers, gig workers, and platform workers.

A. Composition:

1. Chairperson: Union Minister for Labour and Employment
2. Vice-Chairperson: Secretary, Ministry of Labour and Employment
3. Members: Forty (40) in total, including:
   1. Seven (7) representatives of unorganised sector workers
   2. Seven (7) representatives of employers of unorganised sector
   3. Seven (7) eminent civil society members
   4. Two (2) Members of Lok Sabha and 1 from Rajya Sabha
   5. Ten (10) representatives from relevant Central Government ministries
   6. Five (5) State Government representatives
   7. One (1) Union Territory representative
4. Member Secretary (ex officio): Director General, Labour Welfare

B. Functions:

1. Recommend schemes for different categories of unorganised workers, gig and platform workers
2. Advise the Central Government on matters arising from Code administration
3. Monitor implementation and expenditure of welfare schemes
4. Review Aadhaar-based record-keeping at the state level
5. Undertake additional responsibilities as assigned by the Central Government
6. Constitute advisory committees on specific matters as needed

II. State Unorganised Workers' Social Security Boards (Section 7 of the Code)

Each State Government is required to establish a State Unorganised Workers' Board to oversee and implement welfare schemes tailored to local needs.

A. Composition:

1. Chairperson: State Minister of Labour and Employment (ex officio)
2. Vice-Chairperson: Principal Secretary or Secretary (Labour)
3. Members: Thirty-one (31) in total, including:
   1. Seven (7) representatives of unorganised workers
   2. Seven (7) representatives of employers of unorganised workers
   3. Two (2) members of the State Legislative Assembly
   4. Five (5) eminent persons from civil society
   5. Ten (10) representatives of relevant State Government departments
4. Member Secretary (ex officio): One (1) as notified by the State Government

B. Functions:

1. Recommend state-level welfare schemes for various unorganised worker categories
2. Advise the State Government on administrative matters arising under the Code
3. Monitor implementation of schemes and registration of workers
4. Oversee expenditure and fund utilization
5. Review district-level record-keeping and card issuance
6. Perform any other functions assigned by the State Government

Final Word: Why This Matters for Your Business

The formation of these Social Security Boards marks a shift from ad hoc rulemaking to structured, consultative governance. For employers, this means:

1. Improved regulatory clarity and predictability: Inconsistent rulemaking is likely to be replaced with standardized frameworks pushed by these boards, reducing compliance ambiguity.
2. State-Level Compliance Variations: Different state-specific schemes may lead to administrative vigilance and cost differences for multi-state employers managing varied timelines and documentation requirements.
3. Dynamic Policy Environment: With Boards empowered to revise or introduce schemes, businesses may need more agility to regularly updated to meet evolving mandates related to HR policies and compliance practices.
4. Enhanced Monitoring and Audits: Board-led oversight may result in more inspections, data scrutiny, and periodic reporting requirements.