·The Hindu·15 marks·250–350 wordsPolityEconomySociety

Critically evaluate the role of the National Social Security Boards in securing welfare for India's unorganised and gig workforce. Are advisory bodies enough?

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In this answer
  1. Role and strengths
  2. Limitations

On 30 October 2026, the Labour Ministry notified two statutory bodies under the Code on Social Security, 2020: National Social Security Boards for Unorganised Workers (40 members) and for Gig & Platform Workers (22 members) [1]. They are a meaningful institutional step, but because they are only advisory, they cannot deliver much on their own.

Role and strengths

  • Targeted design: separate Boards recognise that a delivery rider's needs differ from a home-based worker's, even though the Code allowed a single Board [2].
  • Legal recognition: the Code is the first law to bring gig workers, who sit outside the employer–employee relationship, into social security [6].
  • Participatory governance: Centre, States, aggregators, unions and civil society sit together [1].
  • Financial oversight: the Boards review spending from the Social Security Fund [1]. The Fund is partly financed by an aggregator levy of 1–2% of turnover, capped at 5% of worker payouts [3].
  • Cooperative federalism: social security is a Concurrent subject (Entry 23, List III), so the Boards also review State-level record-keeping [1].

Limitations

  • Recommend, not decide: the Union government decides whether schemes are notified and funded. It also frames the Boards' procedural rules [1].
  • Role conflict: the Labour Minister chairs and the Labour Secretary vice-chairs both Boards, so the adviser is also the decision-maker [1].
  • Capture risk: the 2020 design gave Centre-nominated aggregators 5 seats, equal to workers' 5 [2]. The companies that pay the levy help shape the schemes it funds.
  • Slow and thin: the Boards came six years after the Code and meet only thrice a year [1]. Meanwhile, gig workers are projected to grow from 77 lakh (2020–21) to 2.35 crore by 2029–30 [4].
  • Employment status untouched: welfare schemes give no minimum wage and no protection from arbitrary de-activation. By contrast, ILO Convention No. 193 (June 2026) protects platform workers whatever their employment status [5].

Are advisory bodies enough? Not by themselves. They need:

  • a time-bound duty on the Ministry to accept advice or reject it with reasons;
  • published State-wise registration and expenditure data;
  • income-loss cover alongside insurance, in line with NITI Aayog's review of global practice [4];
  • a gap analysis of the Code against C193.

The Boards give India's informal and gig workforce a formal voice in welfare design, but without binding follow-through that voice may stay symbolic. With response deadlines, transparency and a clear test for who counts as an employee, they can help deliver the universal social protection envisaged by Article 41 and SDG target 1.3.

Sources

  1. 1Union Labour Ministry sets up social security Boards for unorganised, gig, platform workers — The Hindu, 31 Oct 2026Board notification, composition, chair/vice-chair, functions, meeting frequency, procedural rules
  2. 2The Code on Social Security, 2020 — PRS Legislative Researchsingle-Board option; 2020 aggregator/worker seat design
  3. 3Labour Reforms: Formalising and Safeguarding India's Gig & Platform Workforce — PIBaggregator levy of 1–2% of turnover capped at 5% of payouts; Social Security Fund
  4. 4India's Booming Gig and Platform Economy — NITI Aayog Policy Brief (June 2022)77 lakh to 2.35 crore projection; review of global social-protection practice
  5. 5International Labour Conference ends with adoption of the first Convention on decent work in the platform economy — ILOC193 adopted June 2026, covers platform workers regardless of status
  6. 6Code on Social Security, 2020 envisages social security benefits for gig and platform workers — PIBgig workers outside the traditional employer–employee relationship brought under social security
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