At a Glance
Where the Code comes from, when it took effect and what it replaced.
The Code came into force nationwide on 21 November 2025 for most of its provisions. Section 142, which allows the Government to set up the Social Security Organisations, has actually been in force since 3 May 2021. The Code on Social Security (Central) Rules, 2026 were notified on 8 May 2026, and the Employees' Provident Fund Scheme 2026 and Employees' Pension Scheme 2026 followed on 29 June 2026.
These Central Rules apply directly to establishments where the Central Government is the appropriate Government, such as banking, insurance, telecom, mining, ports, railways and central public sector undertakings. Every other employer should track their own State Government's Social Security Rules, since several states have not finalised theirs yet.
- Issuing authority
- Ministry of Labour and Employment, Government of India
- Notified
- Published in the Gazette of India Extraordinary on 29 September 2020. Section 142 brought into force on 3 May 2021, and the remaining provisions nationwide on 21 November 2025. Central Rules notified on 8 May 2026, followed by the Employees' Provident Fund Scheme 2026 and Employees' Pension Scheme 2026 on 29 June 2026
- Legal basis
- Act No. 36 of 2020, an Act of Parliament. The Code on Social Security (Central) Rules, 2026 were made under it by Notification No. G.S.R. 344(E) dated 8 May 2026
- Supersedes
- 9 central laws: the Employee's Compensation Act 1923, the Employees' State Insurance Act 1948, the Employees' Provident Funds and Miscellaneous Provisions Act 1952, the Employment Exchanges Act 1959, the Maternity Benefit Act 1961, the Payment of Gratuity Act 1972, the Cine Workers Welfare Fund Act 1981, the Building and Other Construction Workers' Welfare Cess Act 1996 and the Unorganised Workers' Social Security Act 2008
- Status as of
- 25 July 2026, in force nationwide with the Central Rules and the EPF and EPS Schemes notified. Several State Governments are yet to finalise their own Social Security Rules
Introduction
The Code on Social Security, 2020 (Act 36 of 2020) folds nine older central laws into one. That list includes the Employees' Provident Funds Act, the Employees' State Insurance Act, the Payment of Gratuity Act, the Maternity Benefit Act, the Employees' Compensation Act, the Employment Exchanges Act, the Cine Workers Welfare Fund Act, the Building and Other Construction Workers' Welfare Cess Act and the Unorganised Workers' Social Security Act.
For an employer already paying PF, ESI and gratuity on time, the day to day compliance calendar does not change much. What is new is Chapter IX, which for the first time puts a legal social security obligation on aggregators such as cab, delivery and e commerce platforms toward their gig and platform workers, funded through a share of their annual turnover.
This guide pulls out what an employer actually needs to track: the forms, the due dates, the coverage thresholds and the penalties, straight from the bare Act and the notified Central Rules.
Forms Employers Must File
These are the forms a company itself, not the employee, is responsible for filing or issuing under the Code.
| Form No. | Title | Governing Rule | Filed By |
|---|---|---|---|
| Form III | Employee nomination for gratuity, verified and kept in safe custody by the employer | Section 55, Gratuity | Employer |
| Form V | Employer's notice admitting or rejecting a gratuity claim | Section 56, Gratuity | Employer |
| Establishment Registration | One time registration of a covered establishment for Provident Fund and ESI | Chapters III and IV of the Code | Employer |
| Accident Report | Report of a fatal accident or serious bodily injury to the competent authority | Section 73, Employee's Compensation | Employer |
| Self Assessment Cess Return | Employer's declaration of cess payable on completion of a construction project | Section 103, Building and Other Construction Workers | Employer |
| Form XX | Aggregator's provisional social security contribution for gig and platform workers | Chapter IX, SS Central Rules 2026 | Aggregator |
| Form XXI | Aggregator's final annual contribution return, with any balance payment | Chapter IX, SS Central Rules 2026 | Aggregator |
| Exemption or Inapplicability Application | Employer's application to exempt an establishment from EPF or ESI coverage | Chapters III and IV, SS Central Rules 2026 | Employer |
Due Dates
Compliance deadlines, the form each one uses and how often it recurs.
| Compliance | Form | Rule Reference | Frequency | Due Date |
|---|---|---|---|---|
| EPF and EPS monthly contribution | — | Chapter III of the Code | Monthly | 15th of the following month |
| ESI monthly contribution | — | Chapter IV of the Code | Monthly | 15th of the following month |
| ESI half yearly return | — | Chapter IV of the Code | Half yearly | 11 May and 11 November every year |
| New employee ESI registration | — | Chapter IV of the Code | On each new joining | On or before the employee's first day of joining |
| Gratuity nomination | Form III | Section 55, Chapter V | One time, per employee | Within 90 days of the employee completing one year of service |
| Gratuity notice admitting or rejecting a claim | Form V | Section 56, Chapter V | On each claim | Within 15 days of receiving a gratuity application |
| Gratuity payment | — | Chapter V of the Code | On each claim | Within 30 days of gratuity becoming payable |
| BOCW cess self assessment | Self Assessment Cess Return | Section 103, Chapter VIII | One time, per project | Within 60 days of completing the construction work |
| Aggregator provisional contribution | Form XX | Chapter IX, SS Central Rules 2026 | Annual | 30 June every year |
| Aggregator final return | Form XXI | Chapter IX, SS Central Rules 2026 | Annual | 31 October every year |
Key Provisions
The sections that decide what an employer has to do.
Old Law vs. New Law
What employers followed before, against what applies now — point matched against point.
| On this point | Before — earlier law | Now — the new Code |
|---|---|---|
| Governing law | Nine separate central Acts | One consolidated Code |
| Gig and platform workers | No dedicated social security law covered them | Chapter IX creates a statutory scheme funded by aggregators |
| ESI in hazardous work | The ten employee threshold applied uniformly | A single employee triggers coverage in a hazardous or life threatening occupation notified by the Central Government |
| Fixed term gratuity | Not payable until five years of continuous service | Payable on a pro rata basis once the fixed term contract ends |
| EPF tribunal appeal deposit | Forty to seventy per cent of the disputed amount, at the tribunal's discretion | Fixed at twenty five per cent of the disputed amount |
| Records and returns | Largely maintained as physical registers | Records, registers and returns are to be maintained in electronic form |
| Compounding of offences | Governed separately, and inconsistently, under each Act | A single compounding mechanism applies across the Code under Section 138 |
Applicability
Who the Code covers, and who gets special or exempt treatment.
Covered
- Chapter III · Employees' Provident Fund — Every establishment with twenty or more employees
- Chapter IV · Employees' State Insurance Corporation — Every establishment with ten or more employees, other than a seasonal factory. A single employee triggers coverage in a hazardous or life threatening occupation notified by the Central Government. Plantations may opt in where the benefits are better than what the employer already provides
- Chapter V · Gratuity — Every factory, mine, oilfield, plantation, port and railway company, and every shop or establishment with ten or more employees on any day in the preceding twelve months
- Chapter VI · Maternity Benefit — Every factory, mine or plantation, and every shop or establishment with ten or more employees on any day in the preceding twelve months
- Chapter VII · Employee's Compensation — Employers and employees to whom Chapter IV does not apply
- Chapter VIII · Social Security and Cess for Building and Other Construction Workers — Every establishment carrying out building or other construction work
- Chapter IX · Social Security for Unorganised Workers, Gig Workers and Platform Workers — The unorganised sector, and unorganised, gig and platform workers
- Chapter XIII · Employment Information and Monitoring — Career centres, notified vacancies, job seekers and employers
Penalties
What each default costs, section by section.
Chance to comply first: Section 137 requires the enforcement officer to first give the employer a written direction with a time limit to fix the lapse. Prosecution follows only if the employer does not comply, or if the same violation repeats within 3 years.
Frequently Asked Questions
Answers to what employers ask us most about this Code.
What is the Code on Social Security, 2020?
It is a central law, Act 36 of 2020, that merges nine older social security laws, covering provident fund, pension, ESI, gratuity, maternity benefit, workplace compensation and welfare of construction and unorganised workers, into one Code.
Which nine laws does the Code replace?
The Employee's Compensation Act 1923, the Employees' State Insurance Act 1948, the Employees' Provident Funds and Miscellaneous Provisions Act 1952, the Employment Exchanges Act 1959, the Maternity Benefit Act 1961, the Payment of Gratuity Act 1972, the Cine Workers Welfare Fund Act 1981, the Building and Other Construction Workers' Welfare Cess Act 1996, and the Unorganised Workers' Social Security Act 2008.
When did the Code actually come into force?
Most provisions took effect on 21 November 2025. One narrow section, dealing with setting up the Social Security Organisations, has been in force since 3 May 2021. The Central Rules that operationalise the Code followed on 8 May 2026, and the EPF and EPS schemes on 29 June 2026.
My company already pays PF and ESI on time. Does anything change for us right away?
Not much on paper. The contribution rates and thresholds for PF and ESI are unchanged. What is worth checking is whether your wage structure keeps basic wages plus dearness allowance at fifty per cent or more of total pay, since that now feeds directly into PF and gratuity calculations.
How many employees does it take before PF becomes compulsory?
Twenty or more employees, under Chapter III. Once it applies, it keeps applying even if headcount later drops below twenty.
How many employees does it take before ESI becomes compulsory?
Ten or more employees generally. For a hazardous or life threatening occupation notified by the Central Government, even a single employee brings ESI coverage into play.
Do gig and delivery platforms have to pay for social security now?
Yes. Chapter IX requires aggregators to fund social security for their gig and platform workers through a share of annual turnover, filed provisionally by 30 June and finalised by 31 October each year.
Is gratuity still payable only after five years of service?
Five years remains the general rule, three years for working journalists. The change is for fixed term employees, who now earn gratuity on a pro rata basis once their contract ends, without waiting five years.
What is the maximum gratuity an employee can receive?
The statutory ceiling remains twenty lakh rupees, as notified by the Central Government. An employer can choose to pay more, but any amount above the ceiling is treated as an ex gratia payment rather than statutory gratuity.
Do I have to buy gratuity insurance?
Yes, unless you are a government establishment or you maintain an approved gratuity fund. Every other employer must insure gratuity liability with an insurer regulated by the Insurance Regulatory and Development Authority.
How long is maternity leave under the new Code?
Twenty six weeks for the first two children, of which up to eight weeks can be taken before the expected delivery date. For a third or later child, it drops to twelve weeks. A woman who legally adopts a child under three months, or a commissioning mother, gets twelve weeks from the date the child is handed over.
What happens if I deduct PF from an employee's wage and do not deposit it?
This is treated as the most serious offence under the Code. It carries imprisonment of at least one year, extendable to three years, along with a fine of one lakh rupees.
Can a first time offence lead to prosecution straight away?
Not immediately. Section 137 requires the enforcement officer to first give the employer a written direction with a time limit to fix the lapse. Prosecution follows only if the employer does not comply, or if the same violation repeats within three years.
Is the Code the same across every state?
The Code itself is a central law and applies uniformly. The detailed procedural rules differ, since each State Government notifies its own Social Security Rules for establishments where it is the appropriate Government, and several states are still finalising theirs.
Where can I read the official text of the Code?
The bare Act is available on the India Code portal at indiacode.nic.in, and the original Gazette notification dated 29 September 2020 is available on the Ministry of Law and Justice's Gazette of India website.
Sources of Information
Where every fact on this page comes from.
- → The Code on Social Security, 2020 (Act No. 36 of 2020), Gazette of India Extraordinary, 29 September 2020 (official)
- → Ministry of Labour and Employment notification bringing the Code into force from 21 November 2025 (official)
- → Code on Social Security (Central) Rules, 2026, Notification No. G.S.R. 344(E) dated 8 May 2026 (official)
- → Employees' Provident Fund Scheme 2026 and Employees' Pension Scheme 2026, notified 29 June 2026 (official)
- → Notifications S.O. 2701(E) and S.O. 2702(E) dated 29 May 2026, on the EPF wage ceiling, interest and inspection charges (official)
- → Bare Act text, India Code portal (official)
For informational purposes only — not legal advice. State rules made under this Code vary, and both the Code and its rules are subject to amendment. Check your state's status or verify with our compliance team before acting.