Government issues draft of the Code on Social Security (Central) Rules, 2025; invites comments within 13.02.2026

The Ministry of Labour and Employment has issued a fresh draft of the Code on Social Security (Central) Rules, 2025 (“2025 Draft Rules”) inviting comments and suggestions within 13^th February, 2026.

The comments and suggestions have to be addressed to Shri Supriya Ranjan Datta, Deputy Secretary, Ministry of Labour and Employment, Room No.318, Shram Shakti Bhawan, Rafi Marg, New Delhi-110001 or by e-mail – sr.datta@nic.in and tezveer.singh@nic.in.

Key Proposals in the 2025 Draft Rules:

1. Repeal of Employee’s Compensation Rules, 1924:

The 2025 Draft Rules repeals the Employee’s Compensation Rules, 1924. This law was not in the list of repealed legislations under the Code on Social Security (Central) Rules, 2020 (“2020 Draft Rules”).

2. Centralised Registration:

a. Employer seeking registration for an establishment not already registered have to apply electronically in the Form-I of the Occupational Safety, Health and Working Conditions (Central) Rules, 2025, on the Shram Suvidha Portal by giving details about the establishment, and uploading documents related to registration of the establishment including proof of Identity and address of the employers as specified in the Form.

b. The registration certificate has to be displayed at the conspicuous places in the premises where the work is being carried out.

3. Employment information and monitoring:

a. Though the Code did not mention any employee threshold, the rules have mentioned that the “establishment in private sector” will mean an establishment (not in public sector) employing 50 or more employees.

b. Instead of quarterly returns, the 2025 Draft Rules proposes that yearly returns have to be filed within 30 days of the due date, namely, 31^st March of the year.

4. ESIC Registration:

Employer in respect of an establishment have to, before or on the day of taking any person into employment, unless such person is already registered under Chapter IV (ESIC) of the Code, register the employee by entering his name and Aadhaar number and other details on the specified portal for such purpose and an insurance number will be automatically allotted to the employee immediately on his registration. Such number will remain valid for a period of 30 days. Under the 2020 Draft Rules, the number would remain valid for 10 days which has now been expanded to 30 days under the 2025 Draft Rules.

5. ESIC Contribution:

The rate of employers and employees’ contribution under ESIC remains unchanged from the existing provisions of the law.

6. Gratuity for fixed term employees:

The Code on Social Security, 2020 explicitly mentions that fixed term employees are also eligible for gratuity payment on pro rata basis. The Draft Rules further mention that  an employee on fixed term employment will be eligible for gratuity, if he renders service under the contract for a period of at least 1 year. Subsequent period in excess of six months and more, but less than one year, will be rounded off to one additional year.

7. Determination of Gratuity:

For the purpose of determination of gratuity, it is clarified that the exclusions from wage will also include any payment payable on an annual basis, that is linked to performance or productivity of an employee or of the establishment in which he is employed and is not part of the remuneration payable under the terms of employment; and the following will not form part of the wage –

• reimbursement of medical expenses;
• stock option benefit or cash equivalent of stock award;
• crèche allowance;
• telephone and internet reimbursement; and
• value of meal vouchers.

8. Maternity Benefit:

Under the 2025 Draft Rules, the following people can provide the certificate (Form X) for confinement/miscarriage/ Medical termination of pregnancy or tubectomy operation/ delivery of a child:

• a registered medical practitioner; or
• an Accredited Social Health Activist; or
• a qualified Auxiliary Nurse and Midwife

9. Creche:

a. The requirement of having creche on having 50 or more employees remain unchanged.

b. The creche has to be located within 1 km of the establishment and should be accessible to employees. Specific requirements for creches (a few of which are listed below) have been prescribed under the Rules:

• crèche shall be maintained in safe and rain proof building;
  • accommodation in the creche shall be on a scale of at least ten square feet of floor area per child
  • there shall be a play area
  • the crèche shall have sufficient number of cots, beds, cotton sheets, rubber sheets, blankets, pillows, toys, and like other things for children;
  • every crèche shall have suitable arrangement for female employees to feed their children below fifteen months of age during the intervals
  • there shall be a kitchen attached to the crèche with utensils and other facilities for boiling milk and preparing refreshments and like other things;

10. Maintenance of records:

a. The following registers and records have to be maintained:

• employees in Form – I of the Code on Wages (Central) Rules, 2025;
• attendance-cum-muster roll in Form – IX of the Code on Wages (Central) Rules, 2025;
• wages, overtime, advances, fines and deductions for damages and losses in Form – IV of the Code on Wages (Central) Rules, 2025;
• women employees in Form – XXII.

b. Entries in the registers shall be made in English and Hindi or the language understood by a majority of persons employed. All the registers and other records shall be preserved in original for a period of five calendar years from the date of last entry made therein.

11. Display Requirement:

The employer has to display conspicuously a notice at or near the main entrance of the establishment in bold letters in English, Hindi and in a language understood by the majority of the employees specifying the name of the officer with designation authorised by the employer to receive, on his behalf, notices under the Code or the rules made therein.

12. Filing Annual Return:

Employers to whom the chapters of gratuity and maternity apply have to file a unified annual return before the 1st day of February in Form-XXIII online on the web portal of the Central Government in the Ministry of Labour and Employment, giving information as to the particulars specified, in respect of the preceding year:

Source: E-Gazette