Continuing with its top agenda of labour reforms, labour ministry has proposed a revised social security code that aims to merge, simplifying and rationalizing the relevant provisions of the existing eight central labour laws by setting up of a social security board in the country. The Employees’ Provident Fund Organisation and the Employees’ State Insurance Corporation would be part of the code but the two schemes will continue to operate.
However, dedicated funds will be created for PF, pension and insurance “that shall vest in, and be administered by, the central board in such manner as may be specified in the respective schemes,” the draft social security code said.
Labour ministry has circulated the draft code seeking comments from stakeholders by October 25 following which tripartite consultations will be held to finalise the code. This comes a day after labour minister Santosh Kumar Gangwar said that his ministry will soon reach out to public for opinion in the draft code.
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As per the draft, beneficiaries will continue to enjoy benefits of provident fund, pension and insurance under EPFO and the medical benefits under ESIC. “However, the code has introduced the option for subscribers to switch to the National Pension Scheme, a proposal which had faced flak from all quarters three years ago.
Source: Economic Times
