Major Compliance-related Changes under the Code on Social Security; State Rules are at different stages of finalisation

Continuing our Series on the analysis of the Labour Codes and the recent notifications, this note covers the Code on Social Security, 2020 (“SS Code”) which also came into effect on 21^st November, 2025, For the SS Code as well, only Arunachal Pradesh has notified the Rules. The Centre and all the other States are in the process of drafting or finalizing the Rules under the SS Code. For a detailed status of the Rules under the Labour Codes, please refer to the Labour Code Reckoner, 2025 on our website.

We are giving below a preliminary note in the form of comparative analysis of the compliances under the SS Code with the compliances under existing labour laws. We will continue to carry out similar and detailed thorough checks on other Rules as and when they come into effect and will continue further updates with you from time to time:

Major Compliance-related Changes under the SS Code:

• The process of registration by establishments has been consolidated. Instead of separate registrations for EPF, ESIC, Gratuity, one registration certificate has to be obtained under the Code. The form and manner of registration will be prescribed by the Government.

[Note- The establishment which is already registered under any other Central labour law for the time being in force will not be required to obtain registration again under this Code and such registration will be deemed to be registration for the purposes of this Code.]

• The following laws shall remain in force (to the extent not inconsistent with the provisions of this SS Code) for a period of one year from the date of commencement of the CSS Code-

• • • • the Employees’ Provident Funds Scheme, 1952, the Employees’ Deposit Linked Insurance Scheme, 1976, the Employees’ Pension Scheme, 1995 and the Tribunal (Procedure) Rules, 1997 framed or made under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and
      • the rules, regulations and schemes made or framed under the Employees’ State Insurance Act, 1948.

• The applicability of the provisions of Employees’ Provident Funds (“EPF”) has been widened. The EPF and Miscellaneous Provisions Act, 1952 (“EPF Act”) would apply to factories engaged in scheduled industries where 20 or more persons are employed. However, under the SS Code, the chapter on Employees’ Provident Fund applies to every establishment in which 20 or more employees are employed. This change will bring in more establishments under the purview of the EPF compliances.
• The erstwhile threshold of employees was gender neutral for providing Creche (50 or more). While the Code sticks to earlier position, the draft Central Rules now states that creche has to be provided on hiring 50 or more women employees.
• The prescribed amount of medical bonus payable to every woman entitled to maternity benefits under the Code is Rs.3,500 which was Rs.1000 under the Maternity Benefit Act, 1961.
• The concept of work from home has been incorporated under the Chapter which deals with Maternity Benefit. In case the work assigned to a woman is of such nature that she may work from home, the employer may allow her to do so after availing of the maternity benefit for such period and on such conditions that the employer and the woman mutually agree.
• The requirement of filing returns (ER I and ER II) under the provisions of the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 And Employment Exchanges (Compulsory Notification of Vacancies) Rules, 1960 have been done away with and has been replaced by a yearly return that has to be filed within 30 days of 31st March of every year.
• Under the Code, an accident occurring to an employee while commuting from his residence to the place of employment for duty or from the place of employment to his residence after performing duty, will be deemed to have arisen out of and in the course of employment if nexus between the circumstances, time and place in which the accident occurred and the employment is established. Such accidents were not considered under the purview of the Employee’s Compensation Act, 1923.
• The format for display of abstract for the Maternity Benefit has been revised to the extent that the display will be done as per the provisions of the Code and not the erstwhile legislations. Accordingly, employers have to update their display formats.
• The contingent requirement to file a unified return on discontinuance of the establishment has been introduced. The registration details under the following 2 Codes have to be intimated to the Authority:

1. 1. Occupational Safety, Health and Working Conditions Code, 2020
   2. Code on Social Security, 2020
   3. and any other law in force during the time.

For regulatory updates and update-related services, drop a mail at inquiries@lexplosion.in

Source: Ministry of Labour and Employment