New social security Bill tabled in Lok Sabha.

It gives option to lower PF contribution

Labour Minister Santosh Gangwar on Wednesday introduced the Code on Social Security, 2019, in the Lok Sabha. The Bill seeks to amend and consolidate laws relating to the social security of employees, subsuming eight Central laws.

The eight Central Labour Acts, namely Employees' Compensation Act, 1923; Employees State Insurance Act, 1948, Employees Provident Funds and Miscellaneous Provisions Act, 1952; Maternity Benefit Act, 1961; Payment of Gratuity Act, 1972; Cine Workers Welfare Fund Act, 1981; Building and Other Construction Workers Cess Act, 1996 and Unorganised Workers Social Security Act, 2008, are to be subsumed under the new law.

The new code will give the option for the reduction of Provident Fund contribution by employees in some sectors from 12% to 10%. The reduction will not apply to employers and has been done solely to increase the take-home pay of employees.

The Bill also proposes to set up a social security fund using the funds available under corporate social responsibility, to provide welfare benefits such as pensions and death and disability benefits. The Bill also has a clause to make fixed-term contract workers eligible for gratuity on a pro-rata basis.