The Code on Social Security, 2020 is one of India’s four major Labour Codes introduced to consolidate and simplify the country’s social-security framework. It brings together provisions relating to Employees’ Provident Fund (EPF), Employees’ State Insurance (ESI), gratuity, maternity benefits, employee compensation, building and construction worker welfare, and social security for unorganised, gig and platform workers.
The Code was brought into force from 21 November 2025 as part of the nationwide implementation of the four Labour Codes.
For employers, HR teams, payroll professionals and compliance departments, the Code has major implications for employee benefits, statutory contributions, registration, record maintenance, contractor compliance and workforce classification.
The Code on Social Security, 2020 is a consolidated labour legislation designed to provide a broader and more uniform social-security framework for workers across India.
It aims to extend social protection to:
- Organised-sector workers
- Unorganised workers
- Gig workers
- Platform workers
- Fixed-term employees
- Building and construction workers
- Other eligible categories of workers
The Government has specifically highlighted that the Code expands social-security coverage beyond traditional employer-employee relationships and recognises gig and platform workers within the statutory framework.
The Code on Social Security, 2020 came into force from:
21 November 2025
The Government implemented all four Labour Codes nationwide from this date.
The Ministry of Labour & Employment has also clarified to States and Union Territories that the Code was enforced on 21 November 2025 and that subordinate rules and schemes may be framed by the Central Government, State Governments or the appropriate Government depending on the relevant provisions.
The Code consolidates nine Central labour laws relating to social security:
- Employees’ Compensation Act, 1923
- Employees’ State Insurance Act, 1948
- Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
- Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
- Maternity Benefit Act, 1961
- Payment of Gratuity Act, 1972
- Cine-Workers Welfare Fund Act, 1981
- Building and Other Construction Workers’ Welfare Cess Act, 1996
- Unorganised Workers’ Social Security Act, 2008
The consolidation is intended to reduce overlapping requirements and create a more integrated social-security system.
One of the most important features of the Code is its wider scope.
The framework is designed to extend social-security benefits to workers across organised and unorganised sectors, including newer categories such as gig and platform workers.
This represents a significant change from older labour laws that were primarily structured around conventional employment relationships.
2. Employees’ Provident Fund – EPF
The Code continues the statutory framework for provident-fund benefits.
EPF-related provisions support long-term social security through contributions made by eligible employees and employers.
Employers should ensure proper management of:
- Employee eligibility
- UAN details
- Monthly contribution calculations
- Wage determination
- Contribution remittance
- ECR filing
- Nomination details
- Employee onboarding
- Exit details
- Payroll-to-EPF reconciliation
Failure to correctly calculate or remit EPF contributions can result in interest, damages and compliance proceedings.
3. Employees’ State Insurance – ESI
The Code retains and broadens the framework for Employees’ State Insurance.
The Government has stated that ESIC coverage is mandatory for establishments employing more than 10 employees, while establishments with fewer than 10 employees may come under voluntary coverage. It also provides for coverage of establishments carrying on notified hazardous activities even where a single employee is employed.
ESI benefits can include:
- Medical care
- Sickness benefits
- Maternity benefits
- Disablement benefits
- Dependants’ benefits
- Other prescribed benefits
Employers should maintain accurate wage and employee records for determining ESI applicability.
The Code formally recognises gig workers.
A gig worker generally performs work or participates in a work arrangement and earns from such activities outside a traditional employer-employee relationship, subject to the statutory definition.
Examples may include individuals working through app-based or task-based work arrangements.
The Code enables the Government to frame social-security schemes for these workers.
Platform workers are also specifically recognised under the Code.
This category can include workers who access work through online platforms or digital intermediaries.
Possible social-security schemes may address matters such as:
- Life and disability cover
- Accident insurance
- Health benefits
- Maternity benefits
- Old-age protection
- Other welfare measures
The Code represents the first statutory recognition of gig and platform workers within India’s consolidated social-security legislation.
6. Aggregator Contribution
The Code creates responsibilities for certain aggregators operating digital or platform-based business models.
Depending on the applicable scheme and notification, aggregators may be required to contribute towards social-security schemes for gig and platform workers.
Businesses operating platform models should therefore assess whether they fall within notified aggregator categories and monitor contribution-related rules.
7. Unorganised Workers
The Code establishes a framework for extending social-security schemes to unorganised workers.
Schemes may address areas such as:
- Life insurance
- Disability benefits
- Health and maternity benefits
- Old-age protection
- Education assistance
- Other welfare benefits
Registration and worker identification can play an important role in accessing these schemes.
The Government has continued expanding worker registration through systems such as the e-Shram ecosystem.
The Code retains gratuity as an important statutory benefit.
Gratuity may become payable on events such as:
- Superannuation
- Retirement
- Resignation
- Death
- Disablement
- Expiry of fixed-term employment, subject to applicable conditions
Fixed-Term Employees and Gratuity
A notable feature is the treatment of fixed-term employees.
Fixed-term employees can become entitled to gratuity on a proportionate basis as provided under the Code, without necessarily having to satisfy the same service period that historically applied to regular employees in certain situations.
This makes accurate contract-duration and service-period records particularly important.
Maternity Benefit Under the Code
The Code incorporates provisions relating to maternity benefits.
The Government has highlighted continued protections including 26 weeks of maternity leave, subject to statutory conditions.
Applicable benefits may include:
- Paid maternity leave
- Nursing breaks
- Medical bonus
- Protection against dismissal during eligible maternity absence
- Crèche facilities where prescribed
- Work-from-home options where the nature of work permits and applicable conditions are satisfied
Employers should incorporate maternity-benefit requirements into HR policies and payroll systems.
Employee Compensation
The Code continues the framework for compensating employees or dependants in cases of employment-related injury, disablement or death.
Employers may have liability where injury arises out of and in the course of employment, subject to statutory provisions.
Compliance may require maintaining:
- Accident reports
- Employee details
- Wage information
- Medical records
- Compensation calculations
- Claim documentation
- Insurance records where applicable
The Code also incorporates provisions relating to welfare for building and other construction workers.
Relevant establishments may need to comply with requirements involving:
- Worker registration
- Welfare cess
- Construction project details
- Cess calculation
- Payment and assessment
- Welfare-board requirements
Contractors and principal employers should clearly define compliance responsibilities for construction projects.
The Code provides for social-security funds for specified categories of workers.
These funds may support schemes for:
- Unorganised workers
- Gig workers
- Platform workers
- Other eligible categories
The aim is to create a broader social-protection framework that reflects changes in India’s employment ecosystem.
Common Registration and Digital Compliance
The Labour Codes place greater emphasis on technology-based compliance.
Depending on the applicable provisions and rules, employers may increasingly manage:
- Registration
- Employee records
- Contributions
- Returns
- Notices
- Digital documentation
- Compliance reporting
Digitisation is intended to improve transparency, reduce duplication and simplify administration.
Inspector-cum-Facilitator
The Labour Code framework introduces the Inspector-cum-Facilitator approach.
The role combines compliance enforcement with guidance to establishments and workers.
The broader labour-code framework also supports technology-enabled inspections and more transparent compliance processes.
Employers should review their systems for:
Employee Registration
Ensure eligible employees are correctly registered under applicable schemes.
Statutory Contributions
Calculate and remit EPF, ESI and other statutory contributions within prescribed timelines.
Payroll Compliance
Maintain alignment between payroll records and statutory contribution records.
Employee Classification
Correctly classify regular, fixed-term, contractual and other employee categories.
Contractor Compliance
Monitor statutory social-security compliance of contractors and vendors.
Gratuity
Track employee service periods and gratuity eligibility.
Maternity Benefits
Ensure eligible employees receive statutory maternity entitlements.
Employee Compensation
Maintain procedures for workplace injury and compensation requirements.
Record Keeping
Maintain statutory registers, employee details, contribution records and supporting documents.
Employers can use the following checklist:
- Determine whether EPF applies
- Determine whether ESI applies
- Verify employee UAN and insurance details
- Validate employee wage data
- Calculate EPF contributions correctly
- Calculate ESI contributions correctly
- Complete statutory remittances on time
- Reconcile payroll with EPF and ESI returns
- Maintain employee nomination details
- Track new joiners and exits
- Verify contractor EPF compliance
- Verify contractor ESI compliance
- Review fixed-term employee benefits
- Calculate gratuity correctly
- Monitor maternity-benefit eligibility
- Maintain workplace accident records
- Review employee-compensation requirements
- Monitor construction-worker welfare obligations
- Maintain statutory registers and records
- Track Central and State notifications
- Monitor applicable social-security schemes
The Code creates both compliance responsibilities and opportunities for streamlined administration.
Employers should particularly review:
Payroll Systems
Payroll data should accurately support EPF, ESI, gratuity and other social-security calculations.
Salary Structures
The statutory definition of wages under the Labour Code framework can influence contribution and benefit calculations.
HR Policies
Leave, maternity, gratuity, employee exit and benefit policies should be reviewed.
Contractor Management
Principal employers should maintain visibility over contractor social-security compliance.
Workforce Data
Reliable employee master data is essential for determining eligibility and statutory contributions.
Contractor compliance remains a significant risk area for principal employers.
Businesses engaging contractors should monitor:
- UAN details
- ESI numbers
- EPF challans
- ECR details
- Employee wage records
- Attendance
- Contribution statements
- Payment proof
- Employee coverage
- Statutory due dates
A mismatch between contractor payroll and statutory records can create compliance observations and potential liability.
A structured system can help organisations:
- Reduce contribution errors
- Prevent missed statutory deadlines
- Identify uncovered employees
- Improve payroll reconciliation
- Monitor contractor compliance
- Maintain supporting documents
- Track statutory notifications
- Improve audit readiness
- Create a clear compliance trail
- Manage multiple establishments from a central platform
FACILE ONE helps organisations manage social-security and payroll compliance through a centralised compliance framework.
Businesses can use FACILE to support:
- EPF compliance monitoring
- ESIC compliance monitoring
- Payroll validation
- Employee statutory-record management
- Contractor payroll verification
- Contribution and payment tracking
- Statutory document management
- Due-date reminders
- Compliance observations
- Multi-location monitoring
- Compliance dashboards and reports
This can be particularly useful for businesses managing large workforces, contractors and establishments across multiple States.
Why FACILE ONE?
Social-security compliance involves multiple employee records, wage calculations, statutory contributions, returns and supporting documents.
FACILE ONE helps organisations bring these activities into one structured system.
Key capabilities include:
- Centralised statutory compliance
- EPF and ESIC monitoring
- Payroll compliance validation
- Contractor compliance tracking
- Statutory document management
- Compliance calendar
- Due-date monitoring
- Audit observations
- Multi-state compliance
- Dashboards and reports
- Compliance audit trails
Stay Connected. Stay Compliant.
The Code on Social Security, 2020 significantly expands India’s social-security framework by bringing traditional statutory benefits together with protections for unorganised, gig and platform workers.
With the Code in force from 21 November 2025, employers should review their EPF, ESI, gratuity, maternity-benefit, compensation and contractor-compliance processes while continuing to monitor Central and State rules, schemes and notifications.
The Code on Social Security, 2020 consolidates nine Central labour laws relating to EPF, ESI, gratuity, maternity benefits, employee compensation and social-security schemes for organised and unorganised workers.
The Code came into force from 21 November 2025.
The Code consolidates nine Central social-security laws.
4. Does the Code cover EPF?
Yes. The Code incorporates the statutory framework relating to Employees’ Provident Fund.
5. Does the Code cover ESI?
Yes. Employees’ State Insurance forms an important part of the Code’s social-security framework.
Coverage can include organised workers, unorganised workers, fixed-term employees, gig workers, platform workers and other prescribed categories.
7. Are gig workers covered under the Code?
Yes. The Code expressly recognises gig workers and enables social-security schemes to be framed for them.
8. Are platform workers covered?
Yes. Platform workers are specifically recognised within the Code.
An aggregator generally refers to a digital intermediary or marketplace connecting users with service providers, subject to the categories and definitions in the Code.
Applicable aggregators may be required to contribute towards social-security schemes for gig and platform workers based on the Code and notified schemes.
11. What is the ESI applicability threshold under the new framework?
The Government has stated that ESIC coverage is mandatory for establishments with more than 10 employees, with voluntary coverage available below that level, subject to applicable provisions and notifications.
12. Can ESI apply to hazardous establishments with only one worker?
Yes. The Government has stated that ESI coverage can extend to a notified hazardous establishment even where only one employee is employed.
13. Is gratuity covered under the Code?
Yes. Gratuity provisions are incorporated into the Code.
14. Are fixed-term employees eligible for gratuity?
Yes. The Code contains specific provisions enabling gratuity benefits for eligible fixed-term employees subject to applicable conditions.
15. Does the Code contain maternity-benefit provisions?
Yes. Maternity benefits, including statutory maternity leave and related protections, are incorporated into the Code.
16. Does the Code cover employee compensation for workplace injuries?
Yes. Employee-compensation provisions are included in the Code.
17. Does the Code cover construction workers?
Yes. It incorporates social-security and welfare provisions relating to building and other construction workers.
18. Are unorganised workers covered?
Yes. One of the major objectives of the Code is to extend social-security protection to unorganised workers.
19. Are State rules relevant under the Code?
Yes. Different provisions give rule-making powers to the Central Government, State Governments and the appropriate Government. Employers should therefore monitor jurisdiction-specific rules.
FACILE ONE can support EPF and ESIC monitoring, payroll validation, contractor compliance, statutory documentation, due-date tracking, compliance observations and multi-location compliance management.
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