Uber India may implement the Social Security Code for its drivers by the end of 2025, following talks with the Union Government.

What is Social Security Code?

• Legislative Background: The Code on Social Security, 2020, was passed by Parliament to consolidate and streamline multiple existing social security laws into one comprehensive framework.
• Coverage and Beneficiaries: It expands social security to all categories of workers such as formal, informal, unorganized, gig, and platform workers ensuring inclusion beyond traditional employer-employee relationships.
• Enables the government to create welfare schemes for workers, including:
  • Health insurance under ESIC (Employee State Insurance Corporation).
  • Retirement benefits through EPF (Employees’ Provident Fund).
  • Maternity benefits for women workers.
• Institutional Framework: The Code provides for the creation of a National Social Security Board with representation from gig platforms, workers, government officials, and experts to frame welfare schemes and oversee implementation.

Significance of the Social Security Code

• Interoperability for Gig Workers: Under the Code, gig workers such as Uber drivers will have interoperable benefits, meaning social security will continue even if they switch to platforms like Ola or Rapido.

• Comprehensive Protection: The Code mandates benefits including life and disability cover, health and maternity benefits, old-age protection, education, and more, tailored by the Central Government.
• Co-contribution Model: Funding for these schemes will come from the Central and State Governments and aggregators (like Uber), ensuring shared responsibility for worker welfare.

Alignment with International Norms: India’s adoption of the Social Security Code aligns with ILO recommendations and its commitment under the UN Covenant on Economic, Social and Cultural Rights.

Concerns Regarding Social Security Status in India

• High Proportion of Informal Workforce: Around 85 percent of the workforce in India is employed in the unorganized sector.
  • These workers lack written contracts, social protection, or access to formal welfare schemes.
• Low Social Security Coverage: In India currently only about 35 million out of a workforce of 400 million have access to formal social security in the form of old-age income protection.
  • For gig and platform workers, coverage is even lower due to the absence of employer-employee relationships.
• Insurance Penetration is Suboptimal: As per IRDAI data (2024), life insurance penetration in India is less than 3.2% of GDP, while health insurance penetration remains under 0.9%, highlighting inadequate risk coverage for vulnerable populations.
• Fragmented Welfare Delivery: Most social security schemes (like Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM), Ayushman Bharat, etc.) operate in silos, leading to duplication, inefficiency, and limited portability for workers who migrate or change occupations frequently.

Way Forward

• Expedited Implementation of the Social Security Code: Ensure that all stakeholders especially gig and platform aggregators comply with the Code by the stipulated timeline and create real-time worker databases to operationalize benefit delivery.
• Promote Digital Portability & Interlinking: Develop digital IDs or worker registries (such as e-Shram) to enable portability of benefits, especially for migrant and gig workers, across states and platforms.
• Incentivize Aggregator Compliance and Awareness: Provide tax or policy incentives for platform companies that contribute to social security and conduct awareness campaigns among workers to boost enrollment and utilization.

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