Code on Social Security
(Central) Rules, 2026 — The Deep Dive

TL;DRThe rules are called the Code on Social Security (Central) Rules, 2026 and come into force from the date of their publication in the gazette — 8 May 2026.

TL;DRTwenty-eight defined terms anchor the rules. Most carry through from the parent Code; a few are rule-specific, including "designated portal", "specified", and the financial year (1 April to 31 March).

TL;DRAn establishment that has been brought under PF or ESI by central notification can apply electronically to opt out — but only after five years of coverage, with majority-employee written consent, all returns filed and dues paid. Application decided in 60 days; deemed approval if no decision in that window.

TL;DRFor ESI dependent-benefit purposes, parents qualify as "dependent" if their income from all sources does not exceed ₹14,000 per month — or such other amount as may be notified.

TL;DREvery employer not already registered must apply electronically using Form-I of the OSH (Central) Rules, 2026 on the ShramSuvidha Portal. Certificate of registration in Form-III of the OSH Rules, issued in 7 days — failing which, registration is auto-deemed and certificate auto-generated.

TL;DRThe EPFO Central Board administers its funds per Central Government guidelines, deposits with RBI / SBI / approved scheduled banks, and may open as many sub-accounts as scheme administration requires. Operating procedures and rule-making are bounded by section 16 of the Code.

TL;DRThe EPFO Central Board's Executive Committee performs delegated functions under section 13 — composition, term, removal, and procedure are spelt out, including the Chair's casting vote on tied decisions.

TL;DRState representation on the ESI Corporation, the Standing Committee for executive functions, and the Medical Benefit Committee — composition, terms, allowances, and disqualification are defined.

TL;DRThe National Social Security Board's term is three years. Members must hold qualifications and experience appropriate to the social-welfare sector. The Board's role: advise the Central Government on schemes for unorganised, gig and platform workers.

TL;DRIf the Central Government considers it necessary or desirable for the welfare of building & construction workers (or any other beneficiary class), it may direct additional welfare measures and facilities — funded from the relevant welfare board.

TL;DRCommon procedural rules for the Central Board, ESI Corporation, NSSB, State Unorganised Workers Board, Building Workers Welfare Board and Cine Workers Welfare Board: notice periods, quorum requirements, decision by majority, Chair's casting vote, video-conferencing permitted.

TL;DRThe procedural framework for reconstituting any Social Security Organisation — including timing, gazette notification, and the continuation of acts and proceedings of the outgoing body until reconstitution is complete.

TL;DRAppeals against EPFO orders are filed in Form-I, within 60 days of the order, with a ₹500 fee by demand draft or online transfer. Tribunal language is English; documents in Hindi or other languages may be filed but a translation must accompany them.

TL;DRThe Director General and the Financial Commissioner of the ESI Corporation are appointed by the Central Government under section 24(1). Their salary, allowances and conditions of service are aligned with comparable Government of India officers.

TL;DRThe ESI Corporation invests ESI Fund moneys in instruments approved by the Central Government — Government securities, scheduled bank deposits as per the Reserve Bank of India Act, 1934 schedule, and other approved investments.

TL;DRFor promoting measures to improve insured-person health and welfare — convalescence, rehabilitation, recreational facilities, and education — the Corporation's expenditure is bounded by Central Government-prescribed annual limits.

TL;DRThe Corporation may acquire, hold, sell or transfer movable and immovable property — subject to Central Government approval for transfers above prescribed thresholds. Includes powers to lease, mortgage, and create charges.

TL;DREvery employer must register every new employee on the specified portal before or on the day they take that person into employment, unless the person already has an Insurance number. ESI cover is real from day one — there is no "grace period."

TL;DRContribution rates are computed on the wage period: employer's share and employee's share at percentages notified by the Central Government in the schedule. The contribution liability runs even on days of holiday, leave with wages, and authorised absence.

TL;DRExpenditure on staff salaries, office establishment, audit fees, member allowances, and operational costs counts as administrative expense under section 30. Capped by Central Government-prescribed limits per year.

TL;DRThe funeral expense payable to the eldest surviving member of the family of an insured person who dies is ₹20,000 — set by Corporation notification under section 32(1)(f) proviso.

TL;DRInsured persons qualify for sickness, disablement, dependants' and maternity benefits based on prescribed contribution-period thresholds. The standard benefit rate (the wage-based daily benefit) is computed per Rule 2's definition: total wages paid in the contribution period ÷ days for which paid.

TL;DRIf an insured person or the Corporation disagrees with a Medical Board decision on disablement or its degree, an appeal can be filed before the Medical Appeal Tribunal. Procedural rules, time-limits and fees are prescribed.

TL;DRFrom a Medical Board or Medical Appeal Tribunal decision, a second appeal lies to the Employees' Insurance Court — for both the insured person and the Corporation.

TL;DRAn employee under Chapter IV is entitled to medical benefit; the family is covered subject to conditions. Coverage continues during periods of authorised absence, maternity leave, and prescribed extended-coverage windows.

TL;DRThe State Government may establish an Employees' State Insurance Society for medical benefit administration. Composition and powers are defined; the Society works alongside the Corporation but for State-level operational delivery.

TL;DRWhere permanent disablement benefit is to be commuted to a capital sum, the capitalised value is computed per actuarial tables prescribed by the Corporation.

TL;DRFor beneficiary classes outside the standard ESI insured-person framework — section 44 — the terms and conditions of scheme operation are notifiable.

TL;DRProcedural rules for all proceedings before the Employees' Insurance Court — applications, evidence, summons, and orders. The Court has powers of a civil court for procedural matters.

TL;DRAll moneys accruing or payable to the ESI Fund are received by Corporation officers and deposited in RBI / SBI / approved scheduled banks. Financial procedures, including signatories and authorisation chains, are prescribed.

TL;DRWhere the nominee or heir of a deceased employee is a minor, the competent authority invests the gratuity in a term deposit with the State Bank of India or a nationalised bank for the minor's benefit until majority.

TL;DRNominations are made on Form-III, in duplicate, within 90 days of completing one year of service. Aadhaar of the nominee is now required. Fresh nomination required within 90 days of acquiring a family if none existed before. Employer must verify and return one duplicate within 30 days.

TL;DRApplication in Form-IV, ordinarily within 30 days of gratuity becoming payable. Nominee — 30 days. Legal heir — 1 year. Fixed-term employee eligible after 1 year of contract service; subsequent service in excess of 6 months rounds up to one additional year. Employer must respond within 15 days.

TL;DRThe competent authority for gratuity disputes must hold prescribed qualifications and experience — typically a labour department or appropriate-government officer with adjudicatory experience.

TL;DRThe fact of pregnancy, delivery, miscarriage, medical termination of pregnancy, tubectomy or related illness must be communicated to the employer with a medical certificate from the prescribed authorities. Procedural particulars and timing are codified.

TL;DRTwo nursing breaks of 15 minutes each — plus an extra period for journey to the crèche, capped at 15 additional minutes. Disputes on the journey extension are referred to the competent authority.

TL;DREstablishments with 50 or more employees must provide and maintain a crèche for children under 6 years. Located within 1 km of the establishment. 10 sq ft of floor area per child. Common crèche permitted in industrial parks. Hours match employee shifts. Midwife-qualified woman attendant in charge; one ayah per ten children.

TL;DRThe acts that constitute "gross misconduct" for the purpose of forfeiture of maternity benefit under section 70 — wilful destruction of property, theft, fraud, riotous behaviour, conviction for moral turpitude — are codified.

TL;DRA maternity-benefit complaint under section 72(1) is filed in writing in Form-XIII-A with the Inspector-cum-Facilitator. Appeal procedure also prescribed. Inspector-cum-Facilitator must give a decision within prescribed period.

TL;DRThe Inspector-cum-Facilitator's duties under Chapter VI of the Code — inspecting establishments, scrutinising records, examining maternity-benefit administration, and posting an abstract of the chapter and rules at the workplace.

TL;DREvery employer must, within 60 days from the date of commencement of work or payment of cess (whichever applies), furnish a self-assessment to the assessing officer with details of construction cost. Refund procedure prescribed for over-payment.

TL;DRCess is payable from the date of measurement or accrual. Delay attracts interest at the rate notified by the Central Government — typically aligned with statutory interest rates on labour dues.

TL;DRIf the assessing officer finds cess unpaid, a penalty proceeding is initiated. The employer is given an opportunity to be heard before any penalty is imposed.

TL;DRAn employer aggrieved by a cess assessment under Rule 41(4) may appeal — procedure, timing and fee prescribed.

TL;DREvery employer or contractor is responsible for ensuring that building and other construction workers are registered. Registration enables beneficiary status and access to welfare benefits.

TL;DRA building worker who has been a beneficiary for at least three years qualifies for prescribed welfare benefits: medical, maternity, education, marriage, pension and others as the State Welfare Board notifies.

TL;DRRecovery procedure for cess sums due — and the exemption framework where the appropriate Government may grant relief in genuine hardship cases.

TL;DREvery unorganised worker who has completed 16 years of age must register under section 113 on the designated portal. Self-declaration with Aadhaar. Mobile app facility provided. Gig and platform workers register similarly. This is the first time gig workers have a procedural registration framework anywhere in Indian law.

TL;DRThe Central Government implements schemes for unorganised, gig and platform workers. Every aggregator must register on the designated portal and pay provisional contribution as assessed — credited to the Social Security Fund. Form-XX is the aggregator self-declaration. Refund procedure for over-paid contribution is prescribed.

TL;DRConditions for the Corporation, Central Board and other Social Security Organisations to acquire, hold, sell or transfer movable and immovable property; to invest, re-invest or realise investments; and to raise loans for prescribed purposes — all bounded by section 120 of the Code.

TL;DRWhere the Corporation or National Social Security Board is satisfied that dues are genuinely irrecoverable — debtor untraceable, defunct establishment, court orders precluding recovery — write-off is permitted with prescribed approvals.

TL;DRThe Corporation maintains complete and accurate accounts. Annual report covers the year's activities, financial position, audit observations and forward plans. Tabled before Parliament and made public.

TL;DREvery employer must maintain prescribed registers — electronically or otherwise. Form-XXIII is the unified annual return covering Chapter III (PF), Chapter IV (ESI), Chapter VI (Maternity), Chapter VII (BOCW), and other applicable chapters. On sale, abandonment or discontinuance of business, an interim return covering the period from previous year-end to disposal date must be filed.

TL;DRThe Central-Government-authorised compounding officer issues an electronic compounding notice in Form-XXIV for offences that are compoundable under section 138. Once compounded, no further proceedings (including prosecution) lie for the same offence.

TL;DRThe appropriate Government may establish, run and maintain career centres — by notification. Until such notification, existing local and central employment exchanges automatically function as career centres.

TL;DRFrom the commencement of the Code, employers report vacancies and selection results to career centres on prescribed forms. The Director of Employment (or equivalent rank officer) at the Directorate General of Employment is the executive authority for Chapter XIII enforcement.

TL;DRIf compensation under section 77(3) is not paid by the employer within 30 days of becoming due, the employer pays interest from the date due — at the rate prescribed.

TL;DRAn application under section 92(1) is processed only on prescribed notice. Money transfer between competent authorities follows the procedure in section 92(3).

TL;DRApplication for compensation under sub-section (3) of section [as referenced] is filed in Form-XXVII. The form captures injury particulars, accident notice details, monthly wage, and dependant declarations.

TL;DRWhere India has an arrangement with another country for transferring lump-sum compensation awarded under that country's law to a beneficiary in India (or vice versa), the procedure for transfer through the transferring authority is operationalised.

TL;DRWhere a matter under the Code is required to be processed by a different authority (transferred from one jurisdiction or office to another), Form-XXX is used to communicate the transfer with detailed records and any retained money.

TL;DRAll funds collected for unorganised, gig and platform workers — including aggregator contributions — are credited to the Social Security Fund. All scheme expenses notified under sections 109 and 114 are met from this Fund. The Fund's accounting and audit are codified.

TL;DRAn establishment seeking exemption (e.g., from Chapter III provident fund coverage to operate its own equivalent or better trust) must demonstrate that the alternative scheme provides benefits at least equal to or better than the Code. Detailed eligibility criteria are codified.

TL;DRThe Central Board or the Corporation has a prescribed time limit for providing its views on an exemption application — preventing applications from sitting indefinitely.

TL;DRAn exempted establishment must continue to comply with prescribed terms and conditions — including audit, reporting, and trustee governance — failing which the exemption may be revoked.

TL;DRAn exempted establishment running its own provident fund (or equivalent welfare scheme) must establish a Board of Trustees with prescribed composition, employee representation, and governance procedures.

TL;DRIf the Central Government is satisfied that any establishment or any person has misused a benefit under the Code, it may, by notification, deprive that establishment or person of the benefit for a specified period — after a mandatory opportunity to be heard.