Code on Social Security, 2020

The Code on Social Security, 2020 is an Indian labour law that consolidates and amends provisions relating to employee social security, including provident fund, pension, employee insurance, gratuity, maternity benefits, and compensation for employment-related injuries. It also provides a framework for extending social security benefits to eligible gig workers, platform workers, and unorganised workers. For HR teams, understanding the Code on Social Security is important for managing employee benefits, statutory contributions, and labour law compliance.

TL;DR

• The Code on Social Security, 2020 consolidates nine central labour laws relating to social security.
• It covers areas such as EPF, EPS, ESI, gratuity, maternity benefits, and employee compensation.
• It establishes a framework for social security schemes for eligible gig workers, platform workers, and unorganised workers.
• Employers need to review applicable contributions, eligibility criteria, employee records, and statutory obligations.
• Actual compliance requirements depend on the provisions in force, applicable rules, notifications, and the establishment's circumstances.

Which Laws Are Consolidated Under the Code on Social Security?

The Code consolidates nine central labour laws into a unified social security framework.

What Are the Key Provisions of the Code on Social Security?

1. Employees’ Provident Fund and Pension

The Code provides a framework for provident fund and pension benefits through the applicable social security provisions. These benefits support employees in building retirement savings and accessing eligible pension benefits.

Employers must identify whether their establishments and employees fall within the applicable coverage requirements and ensure that contributions, records, and other statutory obligations are managed correctly.

2. Employees’ State Insurance

The Code includes provisions for employee state insurance, which supports eligible employees through benefits related to sickness, maternity, employment injury, and other specified circumstances.

Employers covered under the applicable provisions must follow the relevant registration, contribution, and reporting requirements. Eligibility and benefits depend on the applicable rules and conditions.

3. Gratuity

Gratuity is a statutory benefit payable to eligible employees when specified conditions are met, such as termination of employment after qualifying service. The Code also contains provisions relevant to fixed-term employees, subject to the applicable conditions.

HR teams should maintain accurate service records and verify eligibility, wage calculations, and payment timelines before processing gratuity.

4. Maternity Benefits

The Code includes provisions concerning maternity benefits for eligible employees. These address maternity-related leave and benefits, as well as other protections prescribed under the law.

Employers should ensure that maternity benefit policies, eligibility checks, documentation, and related workplace arrangements align with applicable statutory requirements.

5. Social Security for Gig and Platform Workers

The Code expressly recognizes gig workers and platform workers within its social security framework. It enables the government to establish schemes for eligible workers, including benefits related to life and disability cover, accident insurance, health and maternity benefits, and old-age protection.

The framework also provides for contributions by aggregators toward specified social security schemes, subject to statutory provisions and applicable notifications. Recognition under the Code does not automatically mean every worker receives every benefit; eligibility and access depend on the relevant schemes and rules.

When Did the Code on Social Security Come Into Force?

The Code on Social Security, 2020 was enacted on 28 September 2020, and the Central Government brought the principal provisions into force from 21 November 2025. The Social Security (Central) Rules, 2026 were notified on 8 May 2026. Employers should also check the applicable state rules, notifications, and establishment-specific requirements before determining their compliance obligations.

How Does the Code on Social Security Affect HR Teams?

The Code makes social security compliance an important responsibility for HR, payroll, finance, and legal teams. Organizations need to review employee eligibility, contribution calculations, gratuity obligations, maternity benefits, and relevant statutory records against the applicable provisions.

For example, an organization may need to verify whether its employees qualify for EPF or ESI coverage, calculate eligible benefits accurately, and maintain records supporting statutory payments. Employers should also review how fixed-term employment and changes in workforce composition affect applicable benefits.

HR teams can prepare by creating a compliance calendar, assigning clear ownership for each obligation, maintaining accurate employee records, and monitoring changes in applicable rules and notifications.

Pro Tip: Maintain a centralized social security compliance tracker covering employee eligibility, contributions, benefit calculations, filing deadlines, and payment evidence. Review it regularly with payroll and legal teams.

Simplify HR administration with organized employee records, structured payroll workflows.

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FAQ’s

1. What is the Code on Social Security, 2020?

The Code on Social Security, 2020 is an Indian labour law that consolidates nine central labour laws relating to social security, including provident fund, pension, insurance, gratuity, maternity benefits, and employee compensation.

2. Which nine laws are consolidated under the Code on Social Security?

The Code consolidates laws relating to EPF, ESI, employee compensation, maternity benefits, gratuity, employment exchanges, cine-worker welfare, construction-worker welfare cess, and unorganised workers' social security.

3. Does the Code on Social Security cover gig workers?

Yes. The Code recognizes gig workers and platform workers and provides a framework for government-notified social security schemes, subject to applicable eligibility conditions and scheme provisions.

4. What is the difference between EPF and EPS under the Code?

EPF primarily provides accumulated provident fund savings, while EPS provides pension and other qualifying social security benefits. Their contribution structures, eligibility requirements, and benefit calculations differ.

5. When did the Code on Social Security come into force?

The Central Government brought the principal provisions into force from 21 November 2025. The applicable rules and notifications should be checked for specific compliance requirements.

6. How can employers ensure compliance with the Code on Social Security?

Employers can review employee eligibility, verify statutory contributions, maintain accurate records, track deadlines, update HR policies, and monitor applicable government notifications and rules.