Draft Labour Code 2017

Proposed Labour code to provide social security cover to all workers:-

Every Worker(Nearly 45 Crore) Whether in Organised or Unorganized Sector will be included.

For the first time, cover to agricultural workers is being provided along with self-employed people.

The proposed code seeks to cover “any factory, any mine, any plantation, any shop, charitable organisations” and all establishments or households employing casual, part-time, fixed-term, informal, apprentice, domestic and home-based workers. All such establishments or factories will be liable to pay compensation if they fail to contribute towards the social security schemes of the workers.

The total contribution to be made by employers towards Employees’ Provident Fund and Employees’ State Insurance Scheme is proposed to be capped at 30% of the workers’ income. At present, employers contribute 31.5% of the workers’ income towards these schemes.
(So this is a Good Move as it will increase the Net Disposable Income in the Workers Hand).

According to the proposed code, self-employed workers will contribute 20% of their monthly income towards provident fund, pension and other related schemes. Self-employed workers will also include “a person who takes land on share cropping or any other form of rent, and tills the same using his own or family members’ labour.”

One Proposed Body :---National Social Security Council:

A National Social Security Council, chaired by the Prime Minister, has been proposed to streamline and make policy on social security schemes related to all the Ministries.

Other members would include: Finance Minister, Labour Minister, Health and Family Welfare Minister along with employer and employees’ representatives.


Function of the Body :-It will co-ordinate between central and State governments, monitor the implementation of social security schemes, regulate funds collected under various social security schemes, among others.