Act 36 of 2020 · in force 21 November 2025
Code on Social Security, 2020
PF, ESI, gratuity, maternity — and gig work.
Nine social-security laws become one code. It keeps EPF and ESI, rewrites gratuity for fixed-term staff, restates maternity benefit, and for the first time names gig and platform workers as a class entitled to social security.
Employees in notified establishments (EPF, ESI, gratuity, maternity, compensation) and, for Chapter on gig/platform/unorganised workers, a much wider set of workers and aggregators.
Establishments and classes specifically exempted or below notified thresholds (for example, classic EPF/ESI headcount and wage ceilings until expanded by notification).
What changed
Defined in the Code. Central Government may notify schemes for life and disability cover, accident insurance, health and maternity, old age, and crèche. Aggregators contribute to a fund.
Fixed-term employees become eligible for gratuity on a proportionate basis after one year of service, not five.
Unorganised, gig and platform workers can register on a portal; benefits are intended to be portable across states.
26 weeks for a woman with fewer than two surviving children; 12 weeks otherwise. Adoption and commissioning-mother provisions continue. Crèche where 50 or more employees are employed.
Section 2(35)
Gig worker
A person who performs work or participates in a work arrangement and earns from such activities outside of a traditional employer–employee relationship.
Calling someone a ‘partner’ does not, by itself, settle employment status under the Wages or IR Codes.
Section 2(60)–(61)
Platform and platform work
Platform work is a work arrangement outside a traditional employer–employee relationship in which organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services in exchange for payment.
If you run the platform, you are an aggregator. Contribution schemes can be notified against you.
Section EPF
Continuation of EPF / EPS / EDLI
The Code provides for the Central Government to frame and notify provident fund, pension and deposit-linked insurance schemes. Existing EPF, EPS and EDLI continue until replaced. Contribution rates and wage ceilings remain as notified (classically 12% each on wages up to the ceiling, with higher voluntary contribution).
Until a fresh scheme is notified, keep depositing as today — but compute ‘wages’ with the 50% rule in mind where it bites.
Section ESI
ESIC coverage
The Code enables expansion of ESI to establishments and geographies by notification. Benefits include medical care, sickness, maternity, disablement and dependants’ benefits. Contribution rates remain as notified.
Watch expansion notifications — ESI can be switched on for new districts and smaller headcounts.
Section 53
Payment of gratuity
Gratuity is payable after five years of continuous service (on superannuation, retirement, resignation, death or disablement). For fixed-term employment, the five-year condition is relaxed: proportionate gratuity is payable after one year. Calculation remains 15 days’ wages for each completed year of service, based on last-drawn wages.
FTE cost is no longer ‘salary only’. Accrue gratuity from year one for fixed-term staff.
Section 60
Duration of maternity benefit
26 weeks, of which not more than 8 weeks may precede the expected date of delivery, for a woman with fewer than two surviving children. 12 weeks otherwise. 12 weeks for adopting a child below three months and for a commissioning mother. Medical bonus where prenatal/postnatal care is not provided.
Crèche is mandatory at 50 employees. Night-shift and nursing breaks have to be planned, not improvised.
Section 114
Social security for gig and platform workers
The Central Government may frame and notify welfare schemes on life and disability cover, accident insurance, health and maternity benefits, old age protection, and crèche. A Social Security Fund is constituted. Aggregators may be required to contribute 1–2% of annual turnover, not exceeding 5% of the amount paid or payable to gig and platform workers.
If you are an aggregator, model 1–2% of turnover (capped at 5% of payouts) as a contingent statutory cost.
Definitions
- Aggregator
- A digital intermediary or a market place for a buyer or user of a service to connect with the seller or the service provider. The Schedule lists ride-sharing, food and grocery delivery, content and media, professional services, and others.
- Unorganised worker
- A home-based worker, self-employed worker or a wage worker in the unorganised sector; also includes a worker in the organised sector who is not covered by the industrial-relations / EPF–ESI style chapters as specified.
- Dependent
- For compensation and ESI-style benefits, specified family members wholly or in part dependent on the earnings of the employee — including widow, minor children, and dependent parents as listed.
Penalties
| Offence | First | Repeat |
|---|---|---|
| Failure to pay contributions (PF / ESI / fund) | Fine, and recovery of contribution with interest / damages | Imprisonment and enhanced fine; attachment of accounts possible under recovery machinery |
| Failure to pay gratuity | Fine, plus direction to pay gratuity with interest | Enhanced penalty; officer in default may be personally liable |
| Dismissal of a woman during maternity benefit period | Fine / imprisonment as provided; dismissal is void | Enhanced penalty |
Subsumed acts
- Employee's Compensation Act, 1923Now read inside this code
- Employees' State Insurance Act, 1948Now read inside this code
- Employees' Provident Funds Act, 1952Now read inside this code
- Employment Exchanges Act, 1959Now read inside this code
- Maternity Benefit Act, 1961Now read inside this code
- Payment of Gratuity Act, 1972Now read inside this code
- Cine-Workers Welfare Fund Act, 1981Now read inside this code
- BOCW Welfare Cess Act, 1996Now read inside this code
- Unorganised Workers' Social Security Act, 2008Now read inside this code
Questions people actually ask
Has the gig-worker contribution rate started?
The Code authorises 1–2% of aggregator turnover (capped at 5% of amounts paid to gig/platform workers). The operative scheme and rate are as notified by the Centre. Check the latest Gazette — do not assume a number until it is notified.
Does every shop now pay ESI?
No. ESI still follows notified areas, headcount and wage ceilings, which the Code allows the Government to expand. Confirm current ESIC notifications for your district.
Is maternity benefit only for ‘permanent’ staff?
No. It follows the employment relationship and the Code’s conditions (including the 80-days-in-the-preceding-12-months work test, as restated). Contractual labels are not the test.
From the Gazette Library · 5 source documents
Source: Social Security (Central) Rules, 2026 — G.S.R. 344(E), as published by ESIC · ·
Source: Corrigendum to the Code on Social Security commencement — S.O. 5936(E) dated 19.12.2025 · ·
Source: Code on Social Security, 2020 — first partial commencement, S.O. 2060(E) dated 03.05.2023 · ·
Source: Code on Social Security, 2020 — commencement of Chapters III and IV, S.O. 5319(E) dated 21.11.2025 · ·
Source: Code on Social Security, 2020 (Act 36 of 2020), with S.O. 5319(E) dated 21.11.2025 and corrigendum S.O. 5936(E) dated 19.12.2025 · ·
- Made after a draft published as G.S.R. 935(E) on 30 December 2025
- S.O. 5319(E) cannot be read alone
- 21 November 2026, for the schemes and rules saved on the 2025 commencement
- Section 164(2)(b), the one-year saving, is fully in force
- These seven items are what the later notifications mean by their exceptions
- Section 164(2)(b) has been in force for the Pension Scheme since 3 May 2023
- Seven items in force from 3 May 2023, almost all confined to the Employees' Pension Scheme, 1995
- Section 143 is in force except the provisions at serial (v) of S.O. 2060(E) of 3 May 2023
- Schemes and rules under the repealed Acts survive one year from commencement, to 21 November 2026
- Chapter III is in force from 21 November 2025, except section 15(3) onwards and section 16(1)(a) and (b)
- 21 November 2025
- The EPF Scheme 1952, EDLI Scheme 1976, Employees’ Pension Scheme 1995, Tribunal (Procedure) Rules 1997 and the ESI rules, regulations and schemes stay in force, where consistent with the Code, for one year from commencement
- Repeals the Employee’s Compensation Act, 1923; ESI Act, 1948; EPF and MP 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; BOCW Welfare Cess Act, 1996; Unorganised Workers’ Social Security Act, 2008
- In force from 21 November 2025: sections 1 to 14; section 15, except serial (i) of S.O. 2060(E) of 3 May 2023; section 16, except serials (ii) to (iv) of S.O. 2060(E); sections 17 to 141; section 143, except serial (v) of S.O. 2060(E); sections 144 to 163; section 164(1), except serial (vi) of S.O. 2060(E); section 164(2) and (3), except serial (vii) of S.O. 2060(E)
- Extends to the whole of India
- The Code on Social Security, 2020 — Act No. 36 of 2020, assented to on 28 September 2020
Plain-language guide to the four labour codes, not a substitute for the Gazette, state rules, or advice from an advocate. Thresholds and schemes can still be notified or varied by the appropriate Government.