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Section 6: State Building and Other Construction Workers' Welfare Boards

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter II: Social Security Organisations
Competent Labour Forum
Act No. 36 of 2020
Section 5 All 163 Sections of Code on Social Security, 2020 Section 7

Legal Commentary & Landmark Judgments: Section 6

Section 6 of the Code on Social Security, 2020 creates a groundbreaking dual statutory architecture comprising the National Social Security Board and State Unorganised Workers' Social Security Boards, institutionalizing the formulation, monitoring, and administration of welfare schemes for unorganised, gig, and platform workers.

  • National Social Security Board Composition & Advisory Role: Section 6(1) mandates the constitution of the National Social Security Board chaired by the Union Minister of Labour, consisting of representatives of unorganised workers, gig/platform workers, aggregators, employers, and Central/State Government nominees; tasked with recommending social security schemes covering life, disability, health, maternity, and old age.
  • State Unorganised Workers' Social Security Boards: Section 6(9) directs State Governments to constitute State Unorganised Workers' Social Security Boards chaired by the State Labour Minister, responsible for identifying local informal workforce concentrations, monitoring welfare scheme delivery, and managing state-level welfare fund allocations.
  • Aggregator Oversight & Welfare Scheme Financing: Empowers the National Board to advise the Central Government on the utilization and disbursement of welfare funds collected from digital aggregators (1% to 2% turnover cess capped at 5% of worker payouts under Section 114), establishing institutional accountability for gig economy welfare.
Key Landmark Precedents:
  • People's Union for Democratic Rights v. Union of India (1982) 3 SCC 235: The Supreme Court held that state inaction in enforcing protective social welfare legislation for vulnerable and unorganised workers amounts to a violation of Article 21 and 23 of the Constitution, mandating active state institutional intervention.
  • National Campaign Committee for Central Legislation on Construction Labour v. Union of India (2018) 5 SCC 607: The Supreme Court strictly directed the operationalization and financial accountability of statutory welfare boards, ruling that social security funds collected for informal workers cannot be diverted or left unspent in treasury deposits.
  • B.P.L. Ltd. v. R.P.F.C. (2002) 10 SCC 408: Reiterated that statutory boards tasked with administering labor welfare schemes exercise a public trust that must be enforced with transparency and operational fidelity.
Courtroom Practice & Strategic Litigation Guidance:

Digital platforms and e-commerce logistics companies must monitor regulations and advisories promulgated by the National Social Security Board. Corporate counsel should ensure platform worker onboarding data is electronically compatible with national worker databases (e-Shram) to facilitate automatic DBT welfare disbursements and pre-empt punitive cess audits by regional authorities.

Section 5 All 163 Sections of Code on Social Security, 2020 Section 7