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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Code on Social Security, 2020

A consultant is explaining the Social Security Fund established by the Central Government under the Code. Which statement is correct?

The Central Government's Social Security Fund keeps a separate account for each source of funding, and the money in each account is expended only for the purposes for which that account was established. It serves unorganised, gig and platform workers, so pooling for any purpose is wrong.

  1. AA single pooled account is kept and money may be spent for any worker welfare purpose
  2. BThe fund is meant only for organised sector employees covered by provident fund
  3. CA separate account is maintained for each source of funding, and each is spent for the purpose for which it was set upCorrect
  4. DThe fund is created and run by each State Government alone

Explanation

Section 141 requires a separate account for each source: funding under section 109(3), under section 114(3), and composition of offences and other central funds. The fund is spent for the purposes of each separate account. A pooled account contradicts this.

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