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CS Professional · Labour Laws and Practice · Social Security Legislations

Rajasthan's State Government wants to set up its own Social Security Fund under the Code. Its Labour Department collects Rs 40 lakh from composition of offences relating to the State Government. Which statement is correct?

The Rs 40 lakh is credited to the State Government's Social Security Fund. That fund exists for the welfare of unorganised workers and is administered and expended in the manner prescribed by the State Government, not transferred to the Central fund.

  1. AThe amount must be transferred to the Central Social Security Fund
  2. BThe amount is credited to the State fund, which is for the welfare of unorganised workers and administered as prescribed by the State GovernmentCorrect
  3. CThe amount is used for gig and platform workers only, under rules framed by the Centre
  4. DThe State cannot establish such a fund

Explanation

Section 141(5) provides for a State fund for the welfare of unorganised workers, credited with composition amounts relating to the State Government and other sources prescribed by the State. It is administered as the State Government prescribes, not the Centre, so the transfer option is wrong.

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