Section 87: Centralised Database for Migrant Workers

Overview

Section 87 of the Code on Social Security, 2020, doesn’t directly deal with a specific social security benefit like Provident Fund or ESI. Instead, it establishes a foundational system – a centralised database – to *improve* the delivery and portability of all social security benefits to migrant workers. This database aims to ensure that migrant workers, who often move between states and jobs, can seamlessly access benefits they are entitled to under various schemes like Provident Fund, ESI, gratuity, maternity benefits, and others.

Who is Covered?

• This section covers all migrant workers as defined under the Code on Social Security, 2020. This generally refers to a worker who moves from one state to another, or within the same state, for the purpose of employment.
• There are no specific eligibility conditions related to length of service or wage limits for inclusion in the database itself. The aim is to capture information on *all* migrant workers, regardless of their employment status (organized or unorganized sector).

Benefits and Contributions

• Benefit to the Employee: The primary benefit is improved access to social security benefits. The database facilitates portability of benefits, meaning workers can continue to receive benefits even when they change jobs or locations. It also enables targeted welfare programs and quicker assistance during crises.
• Contribution Responsibilities: This section does *not* introduce new contribution requirements. It leverages existing contribution mechanisms under various social security schemes. The database simply improves the administration and delivery of those existing benefits. Employers continue to be responsible for contributions as per the relevant schemes (PF, ESI, etc.).
• Government Role: The government is responsible for establishing and maintaining the centralised database, ensuring data security, and using the data to improve social security programs for migrant workers.

Procedure and Compliance

The Code mandates the creation of a centralised digital database. While the specific procedures for data entry and access are likely to be detailed in subsequent rules and regulations, the general process will involve:

1. Data Collection: Employers and potentially workers themselves will be required to provide information for the database.
2. Database Management: A designated government authority will be responsible for maintaining the database, ensuring data accuracy, and protecting worker privacy.
3. Data Access: Authorized officials and potentially workers themselves (through a secure portal) will be able to access information in the database to facilitate benefit claims and program administration.

Practical Examples

• Example 1: Ram, a construction worker from Bihar, moves to Maharashtra for work. Because his details are in the centralised database, when he contributes to the construction workers’ welfare fund in Maharashtra, the system can easily identify his previous contributions in Bihar, ensuring seamless benefit portability.
• Example 2: A factory owner fails to register their migrant workers in the centralised database as required by the Code. This constitutes non-compliance and can lead to penalties as prescribed under the Code. The labour department can identify this non-compliance through audits and inspections.

Disclaimer

This article is for basic understanding of social security law and should not be treated as legal advice. For specific legal guidance, please consult with a qualified legal professional.