Why in the News
Through a notification dated 28 October 2026 (S.O. 5884(E)), the Ministry of Labour and Employment has constituted a 40-member National Social Security Board for unorganised workers under Section 6 of the Code on Social Security, 2020, and under the proviso to Section 114(6) the same board will also function as a 22-member board for gig and platform workers. The notification has been issued for a period of three years from publication in the Gazette. All four labour codes have been in force since 21 November 2025, and gig and platform workers have entered a legal definition and a social security framework for the first time. According to NITI Aayog's estimate, the gig workforce was 77 lakh in 2020-21 and is estimated to become 2.35 crore by 2029-30 - in this light the board's role matters from the exam's perspective.
The Board's Structure: 40 and 22 Members
The board for unorganised workers will be chaired by the Union Labour Minister, with the Labour Secretary as vice-chairperson. The 40 members include: 7 worker representatives (including 3 from the Bharatiya Mazdoor Sangh, plus the National Front of Indian Trade Unions, the Trade Union Coordination Centre, the Hind Mazdoor Sabha and the All India United Trade Union Centre), 7 employer representatives (including 2 from Laghu Udyog Bharati, plus representatives associated with AIOE, ASSOCHAM, AIMO, CII and FICCI), 4 civil society members, 2 Lok Sabha MPs and 1 Rajya Sabha MP (nominations pending), officials of 10 central ministries and departments, representatives of the labour departments of 5 states (Maharashtra, West Bengal, Gujarat, Andhra Pradesh, Uttar Pradesh) and Delhi, and the Director General of Labour Welfare as member-secretary. In this list, the number of Laghu Udyog Bharati members is 2 according to the notification text found on third-party websites, while one news report states 3; the original Gazette copy could not be verified directly.
In matters of gig and platform workers, under the proviso to Section 114(6), the board will include 5 aggregator representatives (Eternal/Zomato, Swiggy, Zepto, Urban Company, Rapido), 5 worker-side representatives (2 from IFAT, plus BMS, NFITU, TUCC), the Director General of ESIC, the Central Provident Fund Commissioner, 2 experts, representatives of 5 states and a Joint Secretary as member-secretary - 22 members in total.
Functions and Powers
The boards will meet at least three times a year. Their main functions are: recommending to the central government the framing of suitable schemes for different categories of unorganised, gig and platform workers; advising on matters referred to them relating to the administration of the Code; monitoring social welfare schemes run by the Centre; reviewing record-keeping functions at the state level; reviewing the expenditure of the fund and accounts; and other tasks assigned by the central government. Note that the boards are recommendatory and monitoring bodies - the power to frame and notify schemes remains with the central government.
Schemes, the Social Security Fund and Aggregator Contributions
Under Section 114(1), the central government may frame schemes for gig and platform workers relating to life and disability cover, accident insurance, health and maternity benefits, old-age protection, creche facilities and other benefits. A Social Security Fund will be established under Section 141, into which will go the sources under Section 109(3) and Section 114(3) as well as amounts received from the compounding of offences; schemes may also be partly financed from central corporate social responsibility (CSR) funds. Under Section 114(4), aggregators in the Seventh Schedule will contribute 1 to 2 per cent of their annual turnover (excluding taxes and cess), and this contribution will not exceed 5 per cent of the amount payable to gig and platform workers; the central government will notify the date from which the contribution begins. Under Section 113, worker registration will be Aadhaar-based and every worker will be given a unique number (Universal Account Number), so that benefits remain portable across states.
Expansion of EPFO Coverage
According to the Code's First Schedule (Section 1(4)), Chapter III, that is the Employees' Provident Fund provisions, now apply to every establishment with 20 or more employees. Earlier the EPF law was limited to factories belonging to Schedule-I industries and other establishments notified by the central government in the Gazette (20+ employees); now a schedule or a separate notification is no longer needed, bringing workers of both the organised and unorganised sectors within the ambit of social security.
The Controversy: Questions over Representation
Some central trade unions have objected to the board's composition. Organisations such as CITU and AITUC say that most of the 12 central trade unions recognised on the basis of the verification process have found no place in the board, while according to news reports these unions claim that organisations considered close to the RSS (BMS and Laghu Udyog Bharati) have received a total of 6 seats; the central government's notification lists a total of 5 members from these two organisations (3 from BMS and 2 from Laghu Udyog Bharati). CITU national president Sudeep Dutta said that the identification of worker representatives happens through a referendum process and that the government has ignored the recognition process described to Parliament; they will write to the Labour Minister and raise the matter in Parliament too. AITUC's Amarjeet Kaur said that recognition had been settled on the basis of the 2008-09 notification, the later verification process was stopped midway, and the same exclusion had occurred in the constitution of the board related to minimum wages. On the other side, BMS vice-president Pawan Kumar said that nominations were sent at the government's request and that members of other unions are also in the board; he demanded that the board's first meeting be called soon.
Exam Perspective
Mains (GS-II): social justice, labour reform and governance - an institutional safety mechanism for the unorganised sector (about 90 per cent of the total workforce), the first statutory recognition of gig workers, and the balance of representation in regulatory bodies can be asked together.
Prelims: the board's composition (40/22 members, chairperson), Section 6, Section 109, Section 113, Section 114, Section 141, the aggregator contribution (1-2 per cent, 5 per cent cap), EPFO's 20+ universality, the Seventh Schedule's aggregator categories and the date the four labour codes came into force (21 November 2025).
Prelims Practice Questions
Question 1. In the context of aggregator contributions under the Code on Social Security, 2020, which statement is correct?
(a) Every aggregator will have to give a minimum of 3 per cent of its annual turnover to the Social Security Fund
(b) The contribution rate will be 1 to 2 per cent of annual turnover and will not exceed 5 per cent of the amount payable to workers
(c) There is no limit on the aggregator contribution in proportion to the amount paid to workers
(d) Only state governments collect the aggregator contribution
Answer and Explanation
Answer: (b). Under Section 114(4), aggregators of the Seventh Schedule categories will contribute 1 to 2 per cent of their annual turnover (excluding taxes and cess), which will not exceed 5 per cent of the amount payable to gig and platform workers.
Question 2. With reference to the constitution of the National Social Security Board, consider the following statements:
Statement 1: The board constituted for unorganised workers has 40 members and its term is three years
Statement 2: For gig and platform workers, under the proviso to Section 114(6), the same board functions with 22 members
Statement 3: Under the law, only two meetings a year are mandatory for the board
Which of the above statements are correct?
(a) Only 1 and 2
(b) Only 2 and 3
(c) Only 1 and 3
(d) 1, 2 and 3
Answer and Explanation
Answer: (a). According to notification S.O. 5884(E), the board for unorganised workers is of 40 members and a three-year term; in gig-platform matters, under the proviso to Section 114(6), the same board sits with 22 members. Statement 3 is wrong because under the Code the board must meet at least three times a year, not only twice.
Mains Practice Question
"The constitution of the National Social Security Board is a significant step towards linking the gig economy to a formal welfare framework, but questions of representation and implementation remain unanswered." Analyse this statement. (Write the answer in 250 words. 15 marks)
Answer Outline
Introduction: The 28 October 2026 notification (S.O. 5884(E)) constitutes a 40-member board under Section 6 of the Code on Social Security, 2020 and a 22-member gig board under the proviso to Section 114(6); the step comes amid estimates of the gig workforce reaching 2.35 crore by 2029-30 (NITI Aayog).
Main Body: Significance: the first statutory recognition of gig and platform workers, the Section 141 Social Security Fund, aggregator contributions (1-2 per cent of turnover, 5 per cent cap), portability through Aadhaar-based UAN, EPFO's universal 20+ coverage. Challenges: the board's role is only recommendatory, actual schemes and the notification of the contribution rate are still pending; most of the 12 recognised central trade unions are left out, raising questions over representation; the practical capacity of state-level record-keeping and registration; the continuity of scheme financing.
Conclusion: The board's success rests on the pace of its first meeting, the notification of schemes and inclusive representation; the building of an institutional framework is only the beginning - reaching distribution will be the test.
Way Forward
Attention will now be on the board's first meeting, the notification of schemes and the notified date of the aggregator contribution rate (1-2 per cent). The pace of worker registration (Aadhaar-based UAN), record-keeping coordination with states and the questions likely to be raised in Parliament over the disputed representation will decide whether the framework turns into actual distribution.
Sources
- Ministry of Labour and Employment notification S.O. 5884(E), 28 October 2026 (Gazette of India, Part II-Section 3(ii), published 29 October 2026) - board constitution and full member list: link (notification text from a third-party website; the original Gazette copy could not be obtained directly)
- Press Information Bureau, 30 October 2026 - the board's functions and meeting frequency (official): link
- Code on Social Security, 2020 - Sections 6, 109, 113, 114, 141 and the First Schedule (India Code): link
- Press Information Bureau, 21 November 2025 - all four labour codes in force (official): link
- NITI Aayog, "India's Booming Gig and Platform Economy", June 2022 - gig workforce estimates: link
- Indian Express, 31 October-2 November 2026 - analysis of the board's constitution and trade union reactions: link 1, link 2
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PCSMANTRA Editorial Team
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