Page 741 - ES 2020-21_Volume-1-2 [28-01-21]

368 Economic Survey 2020-21 Volume 2

viii. To cater to emerging new forms of employment, new definitions like of aggregator, gig
worker, platform worker have been introduced. A small contribution from aggregator
between one to two per cent of turnover subject to limit of five per cent payable to gig and
platform workers has been introduced.
ix. A Social Security Fund is proposed to be established to formulate schemes for social
security to the workers of unorganised sector. The amount of the compounding of fines
shall also become part of the Social Security Fund. Through this dedicated account of
the Social Security Fund, the schemes would be formulated by the Central Government
from time to time for benefit of these workers concerning their welfare on life & disability
cover, health and old age benefits, etc.

x. For the persons engaged in FTE, the proportionate benefit of service has been extended
without requirement of minimum service of 5 years for gratuity. A person having a contract
for one year under FTE will also be eligible for 15 days wages’ as gratuity.

xi. The definition of wages has been revised to bring clarity as to what constitute “wages” for
the purpose of calculation of contribution for EPF and ESIC.
xii. Keeping in view the increased life expectancy, definition of “dependent” has been extended
to include maternal grandparents also.
xiii. Flexibility has been provided to the employers for procuring Compulsory Insurance for
the Corpus/Fund for gratuity from any IRDA regulated Insurance Company, as against
from LIC only, today.
xiv. The benefit of Employees Compensation Act will now be available to also those employees
who meet with accidents while travelling between residence and place of work.
xv. The Inspector-cum-Facilitator has been introduced in the Code in place of Enforcement
Officer, Inspector, Social Security Officer, etc. The responsibilities, inter-alia, would
include imparting of advice to employers and workers for effective compliance of the
provisions of Social Security Code.
xvi. A web-based inspection scheme to allocate random inspections by centralized computer
system has been introduced. The inspection scheme envisages assigning of unique number
to inspector cum facilitator, to each establishment including each inspection to bring
accountability and transparency.
xvii. The Code envisages filing of a single return and single registration by the employer which
may be electronically or otherwise.
xviii. At present, the rate of interest chargeable on delayed payment is 12 per cent. Keeping in
view of the changing rate of interest in the economy, the Code envisages notification of
rate of interest from time to time by the Central Government.

xix. Monetary fines have been rationalized. A provision for compounding of offences has
been introduced by rationalizing the monetary fines. Now employer will be given a
prior opportunity for complying with the provision of this Code, before the process of
prosecution begins.