THE CODE ON SOCIAL SECURITY, 2020

An Act to amend and consolidate the laws relating to social

security with the goal to extend social security to all employees
and workers either in the organised or unorganised or any other
sectors and for matters connected therewith or incidental
thereto.

Short title, extent, commencement and application.

(1) This Act may be called the Code on Social Security, 2020.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government
may, by notification in the Official Gazette, appoint; and different
dates may be appointed for different provisions of this Code and
any reference in any such provision to the commencement of this
Code shall be construed as a reference to the coming into force of
that provision
Definitions:
2. In this Code, unless the context otherwise requires,—
(1) "agent" when used in relation to an establishment, means every person,
whether appointed as such or not, who acting or purporting to act on behalf of
the owner, takes part in the management, control, supervision or direction of
such establishment or part thereof;
(2) "aggregator" means a digital intermediary or a market place for a buyer or
user of a service to connect with the seller or the service provider;
(3) "contract labour" means a worker who shall be deemed to be employed in
or in connection with the work of an establishment when he is hired in or in
connection with such work by or through a contractor, with or without the
knowledge of the principal employer and includes inter-State migrant worker but
does not include an employee (other than part time employee) who is regularly
employed by the contractor for any activity of his establishment and his
employment is governed by mutually accepted standards of the conditions of
employment (including engagement on permanent basis), and gets periodical
increment in the pay, social security coverage and other welfare benefits in
accordance with the law for the time being in force in such employment;
(4) "contractor", in relation to an establishment means a person, who— (i)
undertakes to produce a given result for the establishment, other than a mere
supply of goods or articles of manufacture to such establishment through
contract labour; or (ii) supplies contract labour for any work of the establishment
(5) "delivery" means the birth of a child;
(6) "employee" means any person (other than an apprentice engaged under
the Apprentices Act, 1961) employed on wages by an establishment, either
directly or through a contractor, to do any skilled, semi-skilled or unskilled,
manual, operational, supervisory, managerial, administrative, technical, clerical
or any other work, whether the terms of employment be express or implied, and
also includes a person declared to be an employee by the appropriate
Government, but does not include any member of the Armed Forces of the Union:
(7) "employer" means a person who employs, whether directly or through any
person, or on his behalf, or on behalf of any person, one or more employees in
his establishment and where the establishment is carried on by any department
of the Central State Government, the authority specified, by the head of such
department, in this behalf or Government or the ere no authority is so specified,
the head of the department and in relation to an establishment carried on by a
local authority, the chief executive of that authority, and includes,—
(a)in relation to an establishment which is a factory, the occupier of the factory;
(b)in relation to mine, the owner of the mine or agent or manager having
requisite qualification under the law for the time being in force and appointed
by the owner or agent of the mine as such;
(c)in relation to any other establishment, the person who, or the authority which
has ultimate control over the affairs of the establishment and where the said
affairs are entrusted to a manager or managing director, such manager or
(8) "gig worker" means a person who performs work or participates in a work
arrangement and earns from such activities outside of traditional employer-employee
relationship;

(9) "home-based worker" means a person engaged in, the production of goods or
services for an employer in his home or other premises of his choice other than the
workplace of the employer, for remuneration, irrespective of whether or not the employer
provides the equipment, materials or other inputs.

(10) "seasonal factory " means a factory which is exclusively engaged in one or more of
the following manufacturing processes, namely, cotton ginning, cotton or jute pressing,
decortication of ground-nuts, the manufacture of indigo, lac, sugar (including gur) or any
manufacturing process which is incidental to or connected with any of the aforesaid
processes and includes a factory which is engaged for a period not exceeding seven
months in a year in a manufacturing process as the Central Government may, by
notification, specify;
(11) "self-employed worker" means any person who is not employed by an employer,
but engages himself in any occupation in the unorganised sector subject to a monthly
earning of an amount as may be notified by the Central Government or the State
Government, as the case may be, from time to time or holds cultivable land subject to
such ceiling as may be notified by the State Government;

(12) "shop", in respect of a State, means a shop as defined in any law for the time being
in force dealing with the shop in that State;
(13) "sickness" means a condition which requires medical treatment and attendance
and necessitates abstention from work on medical ground;

(14) "social security" means the measures of protection afforded to employees,

unorganised workers, gig workers and platform workers to ensure access to health care
and to provide income security, particularly in cases of old age, unemployment,
sickness, invalidity, work injury, maternity or loss of a breadwinner by means of rights
conferred on them and schemes framed, under this Code;

(15) "temporary disablement" means a condition resulting from an employment

injury which requires medical treatment and renders an employee, as a result of such
injury, temporarily incapable of doing the work which he was doing prior to or at the
time of the injury;

(16) "unorganised sector" means an enterprise owned by individuals or self-

employed workers and engaged in the production or sale of goods or providing service
of any kind whatsoever, and where the enterprise employs workers, the number of such
workers is less than ten; (86) "unorganised worker" means a home-based worker, self-
employed worker or a wage worker in the unorganised sector and includes a worker in
the organised sector who is not covered by the Industrial Disputes Act, 1947 or
Chapters III to VII of this Code;
(17) "wages" means all remuneration, whether by way of salaries,
allowances or otherwise, expressed in terms of money or capable
of being so expressed which would, if the terms of employment,
express or implied, were fulfilled, be payable to a person employed
in respect of his employment or of work done in such employment,
and includes,—
(a) basic pay;
(b) dearness allowance; and
(c) retaining allowance, if any,

(18) "wage worker" means a person employed for remuneration

in the unorganised sector, directly by an employer or through any
contractor, irrespective of place of work, whether exclusively for
one employer or for one or more employers, whether in cash or in
kind, whether as a home-based worker, or as a temporary or casual
worker, or as a migrant worker, or workers employed by
households including domestic workers, with a monthly wage of an
amount as may be notified by the Central Government and the
CHAPTER III EMPLOYEES’ PROVIDENT FUND

Appointment of officers of Central Board [Section 14].

. (1) The Central Government may appoint a Central Provident Fund

Commissioner who shall be the Chief Executive Officer of the Central Board and
shall also function as head of the Employees’ Provident Fund Organisation.
Explanation.—For the purposes of this Code, the expression "Employees’
Provident Fund Organisation" means the organisation consisting of officers and
employees of the Central Board.

(2) The Central Provident Fund Commissioner shall be subject to the general
control and superintendence of the Central Board in the discharge of his
functions under this Code.
(3) The Central Government shall also appoint a Financial Advisor and Chief
Accounts Officer to assist the Central Provident Fund Commissioner in the
discharge of his duties.
(4) The Central Board may appoint, as many Additional Central Provident Fund
Commissioners, Deputy Provident Fund Commissioners, Regional Provident Fund
Commissioners, Assistant Provident Fund Commissioners and such other officers
and employees as it may consider necessary for the efficient administration of
the Provident Fund Scheme, the Pension Scheme and the Insurance Scheme or
(5) No appointment to the post of the Central Provident Fund
Commissioner or an Additional Central Provident Fund
Commissioner or a Financial Adviser and Chief Accounts Officer or
any other post under the Central Board carrying a scale of pay
equivalent to the scale of pay of any Group 'A' or Group 'B' post
under the Central Government shall be made except after
consultation with the Union Public Service Commission:
Provided that no such consultation shall be necessary in regard to
any such appointment—
(a)for a period not exceeding one year; or
(b) if the person to be appointed is, at the time of his
appointment,—
(i) a member of the Indian Administrative Service, or
(ii) in the service of the Central Government or the Central Board in
a Group 'A' or Group 'B' post.

(6) The method of recruitment, salary and allowances, discipline

and other conditions of service of the Central Provident Fund
(7) (a) The method of recruitment, salary and allowances, discipline
and other conditions of service of the Additional Central Provident
Fund Commissioners, Deputy Provident Fund Commissioners,
Regional Provident Fund Commissioners, Assistant Provident Fund
Commissioners and other officers and employees of the Central
Board shall be such as may be specified by the Central Board in
accordance with the rules and orders applicable to the officers and
employees of the Central Government drawing corresponding
scales of pay:
Provided that where the Central Board is of the opinion that it is
necessary to make a departure from the said rules or orders in
respect of any of the matters aforesaid, it shall obtain the prior
approval of the Central Government:
Provided further that the salary and allowances of the officers
specified in this clause shall not exceed the scale of pay
respectively provided in the Provident Fund Scheme.
(b) In determining the corresponding scales of pay of officers and
employees under clause (a), the Central Board shall have regard to
Schemes [Section 15]
. (1) The Central Government may, by notification—
(a) frame a scheme to be called the Employees' Provident Fund Scheme for
which the provident funds shall be established under this Chapter for
employees or for any class of employees and specify the establishments or
class of establishments to which the said scheme shall apply;
(b) frame a scheme to be called the Employees' Pension Scheme for the
purpose of providing for—
(i) superannuation pension, retiring pension or permanent total
disablement pension to the employees of any establishment or class of
establishments to which this Chapter applies;
(ii) widow or widower's pension, children pension or orphan pension payable
to the beneficiaries of such employees; and
(iii) nominee pension;
(c) frame a scheme to be called the Employees' Deposit Linked Insurance
Scheme for the purpose of providing life insurance benefits to the
employees of any establishment or class of establishments to which this
Chapter applies;
(d) frame any other scheme or schemes for the purposes of providing social
security benefits under this Code to self-employed workers or any other
 (2) Subject to the provisions of this Chapter, the schemes referred to in
clauses (a), (b) and (c) of sub-section (1) may provide for all or any of
the matters respectively specified in Part A, Part B and Part C of the Fifth
Schedule.
(3) The schemes may provide that all or any of its provisions shall take
effect either prospectively or retrospectively on and from such date as
may be specified in that behalf in the scheme.
Funds[ Section 16).
(1) The Central Government may, for the purposes of— (a) the Provident
Fund Scheme, establish a Provident Fund where the contributions paid
by the employer to the fund shall be ten per cent. of the wages for the
time being payable to each of the employees (whether employed by
him directly or by or through a contactor), and the employee's
contribution shall be equal to the contribution payable by the employer
in respect of him and may, if any employee so desires, be an amount
exceeding ten per cent. of the wages, subject to the condition that the
employer shall not be under an obligation to pay any contribution over
and above his contribution payable under this section:
Provided that in its application to any establishment or class of
Provided further that the Central Government, after making such inquiry as it deems fit,
may, by notification, specify rates of employees’ contributions and the period for which
such rates shall apply for any class of employee;
(b) the Pension Scheme, establish a Pension Fund in the manner specified in that scheme
by that Government into which there shall be paid, from time to time, in respect of every
employee who is a member of the Pension Scheme,—
(i) such sums from the employer's contribution under clause (a) not exceeding eight and
one-third per cent. of the wages or such per cent. of wages as may be notified by the
Central Government;
(ii) such sums payable as contribution to the Pension Fund, as may be specified in the
Pension Scheme, by the employers of the exempted establishments under section 143 to
which the pension scheme applies;
(c) the Insurance Scheme, establish a Deposit-Linked Insurance Fund in the manner
specified in that scheme by that Government into which there shall be paid by the
employer from time to time in respect of every such employee in relation to whom he is
the employer, such amount, not being more than one per cent. of the wages or such per
cent. of wages as may be notified by the Central Government for the time being payable in
relation to such employee:
d) Provided that the employer shall pay into the Insurance Fund such further sums of
money, not exceeding one-fourth of the contribution which he is required to make under
this clause, as the Central Government may, from time to time, determine to meet all the
expenses in connection with the administration of the Insurance Scheme other than the
expenses towards the cost of any benefits provided by or under the Insurance Scheme.
(2) The Provident Fund, the Pension Fund and the Insurance Fund shall vest in, and be
administered by, the Central Board in such manner as may be specified in the respective
Authorising certain employers to maintain provident fund accounts Section 21:
(1) The Central Government may, on an application made to it in this behalf by the
employer and the majority of employees in relation to an establishment employing one
hundred or more persons, authorise the employer by an order in writing, to maintain a
provident fund account in relation to the establishment, in such manner as may be
prescribed by the Central Government and subject to such terms and conditions as may
be specified in the Provident Fund Scheme:
Transfer of accounts Section 22
(a) employed in an establishment to which this Chapter applies, relinquishes his
employment therefrom and obtains employment in any other establishment to which
this Chapter applies or not; or
(b) employed in an establishment to which this Chapter does not apply, relinquishes his
employment therefrom and obtains employment in an establishment to which this
Chapter applies,

Appeal to Tribunal Section 23.

23. (1) Any person aggrieved by an order passed by any authority in regard to the
following matters may prefer an appeal to the Tribunal constituted by the Central
Government, namely:—
(a) determination and assessment of dues under section 125 relating to Chapter III; and
(b) levy of damages under section 128 relating to Chapter III.
(2) Every appeal under sub-section (1) shall be filed in such form and manner, within
such time and accompanied by such fees as may be prescribed by the Central
Government.
CHAPTER IV EMPLOYEES STATE INSURANCE CORPORATION
Principal Officers and other staff [Section 24]
(1)The Central Government may appoint a Director General of the Corporation
and a Financial Commissioner, who shall be the Principal Officers of the
Corporation.
(2)The Director General and the Financial Commissioner shall hold office for
such period, not exceeding five years, as may be specified in the order of
appointment: Provided that outgoing Director General or Financial
Commissioner, as the case may be, shall be eligible for re-appointment if he
is otherwise qualified.
(3) The Director General or the Financial Commissioner shall receive such salary
and allowances as may be prescribed by the Central Government.
(4) The Director General and the Financial Commissioner shall exercise such
powers and discharge such duties as may be prescribed by the Central
Government and shall perform such other functions as may be specified in the
regulations.
(5) A person shall be disqualified from being appointed as or for being the
Director General of the Corporation or the Financial Commissioner if he is
subject to any of the disqualifications specified in section 8.
(6) The Central Government may at any time remove the Director General of the
Corporation or the Financial Commissioner from office and shall do so if such
removal is recommended by a resolution of the Corporation passed at a special
(7) The Corporation may employ such other officers and employees as may be
necessary for the efficient transaction of its business and for discharge of any
other responsibilities assigned to the Corporation from time to time by the
Central Government:
Provided that the sanction of the Central Government shall be obtained for the
creation of any post the maximum monthly salary of which exceeds such salary
as may be prescribed by the Central Government.

(8) (a) The method of recruitment, salary and allowances, discipline and other
conditions of service of the officers and employees of the Corporation shall be
such as may be specified in the regulations in accordance with the rules and
orders applicable to the officers and employees of the Central Government
drawing corresponding scales of pay:
(b) In determining the corresponding scales of pay of officers and employees
under clause (a), the Corporation shall have regard to the educational
qualifications, method of recruitment, duties and responsibilities of such officers
and employees under the Central Government and in case of any doubt, the
Corporation shall refer the matter to the Central Government whose decision
thereon shall be final.
(9) Every appointment to posts (other than medical, nursing or para-medical
posts) corresponding to Group 'A' and Group 'B' Gazetted posts under the
Central Government shall be made in consultation with the Union Public Service
Employees’ State Insurance Fund[Section 25]
. (1) All contributions and user charges paid under this Chapter and all other
moneys received on behalf of the Corporation shall be paid into a fund
(hereinafter referred to as the Employees' State Insurance Fund) which shall be
held and administered by the Corporation for the purposes of this Code: Provided
that the user charges collected from the other beneficiaries referred to in section
44 shall be deemed to be contribution and shall form part of Employees' State
Insurance Corporation.
(2) The Corporation may accept grants, donations, Corporate Social
Responsibility Fund and gifts from the Central or any State Government, local
authority, or any individual or body whether incorporated or not, for all or any of
the purposes of this Chapter.
(3) Subject to the other provisions contained in this Code and to any rules or
regulations made in this behalf, all moneys accruing or payable to the said Fund
shall be deposited in such bank or banks as may be approved by the Central
Government to the credit of an account styled the account of the Employees'
State Insurance Fund. (4) The Employees State Insurance Fund or any other
money which is held by the Corporation shall be deposited or invested in the
manner prescribed by the Central Government and the account referred to in
sub-section (3) shall be operated by such officers as may be authorised by the
Committee constituted under sub-section (3) of section 5 (hereinafter referred to
as the Standing Committee) with the approval of the Corporation
Purposes for which Employees’ State Insurance Fund may be expended
[Section 26]
. Subject to the provisions of this Chapter and the rules and regulations relating
thereto, made under this Code, the Employees' State Insurance Fund shall be
expended only for the following purposes, namely:—
(a) payment of benefits and provision of medical treatment and attendance to
Insured Persons referred to in section 28 and, where the medical benefit is
extended to their families, the provision of such medical benefit to their families,
in accordance with the provisions of this Chapter and the rules and regulations
relating thereto and defraying the charges and costs in connection therewith;
(b) payment of fees and allowances to members of the Corporation, the
Standing Committee, the Medical Benefit Committee or other Committees
thereof;
(c) payment of salaries, leave and joining time allowances, travelling and
compensatory allowances, gratuities and compassionate allowances, pensions,
contributions to provident or other benefit fund of officers and staff of the
Corporation and meeting the expenditure in respect of offices and other services
set up for the purpose of giving effect to the provisions of this Code relating to
this Chapter;
(d) establishment and maintenance of hospitals, dispensaries and other
institutions and the provision of medical and other ancillary services for the
benefit of Insured Persons referred to in section 28 and, where the medical
(f) defraying the cost (including all expenses) of auditing the
accounts of the Corporation and of the valuation of its assets and
liabilities;
(g) defraying the cost (including all expenses) of the Employees'
Insurance Courts set up under this Chapter; (h) payment of any
sums under any contract entered into for the purposes of this Code
by Corporation or the Standing Committee or by any officer duly
authorised by the Corporation or the Standing Committee in that
behalf;
(i) payment of sums under any decree(official order), order or
award of any Court or Tribunal against the Corporation or any of
its officers or staff for any act done in the execution of his duty
or under a compromise or settlement of any suit or other legal
proceeding or claim instituted or made against the Corporation;
(j) defraying the cost and other charges of instituting or defending
any civil or criminal proceedings arising out of any action taken
under this Code relating to this Chapter;
(k) defraying expenditure, within the limits prescribed by the
All employees to be insured. Section 28:
. (1) Subject to the provisions of this Code, every employee in an establishment to
which this Chapter applies shall be insured in such manner whether electronically
or otherwise, as may be prescribed by the Central Government.
(2) An employee whether insured or insurable under sub-section (1) in respect of
whom contributions are or were payable and who is by reason thereof, entitled to
any of the benefits provided under this Chapter, shall be called "Insured Person".

Contributions Section 29:

. (1) The contribution payable under this Chapter in respect of an employee shall
comprise contribution payable by the employer (hereinafter referred to as the
employer's contribution) and contribution payable by the employee (hereinafter
referred to as the employee's contribution) and shall be paid to the Corporation.
(2) The contributions (employer's contribution and the employee’s contribution
both) shall be paid at such rates as may be prescribed by the Central
Government.

Administrative expenses Section 30:

30. The types of expenses which may be termed as administrative expenses and
the percentage of the income of the Corporation which may be spent for such
expenses shall be such as may be prescribed by the Central Government and the
Corporation shall keep its administrative expenses within the limit so prescribed
Provisions as to payment of contributions by employer, etc.
Section 31
(1)The employer shall pay in respect of every employee, whether
directly employed by him or by or through a contractor, both the
employer's contribution and the employee's contribution.
(2) Notwithstanding anything contained in any other law for the time
being in force, but subject to the provisions of this Code and the
rules and regulations, if any, made thereunder in this behalf, the
employer shall, in the case of an employee directly employed by
him (not being an exempted employee), be entitled to recover
from the employee the employee's contribution by reduction from
his wages and not otherwise:
(3)Notwithstanding any contract to the contrary, neither the
employer nor the contractor shall be entitled to deduct the
employer's contribution from any wages payable to an employee
or otherwise to recover it from him.
(4) Any sum deducted by the employer from wages under this
Chapter shall be deemed to have been entrusted to him by the
Benefits Section 32
(1)Subject to the provisions of this Code, the Insured Persons, their
dependants or the persons hereinafter mentioned, as the case
may be, shall be entitled to the following benefits, namely:—
(a)periodical payments to any Insured Person in case of his sickness
certified by a duly appointed medical practitioner or by any other
person possessing such qualifications and experience as the
Corporation may, by the regulations, specify in this behalf
(hereinafter referred to as sickness benefit);
(b) periodical payments to an Insured Person being a woman in case
of confinement or miscarriage or sickness arising out of pregnancy,
confinement, premature birth of child or miscarriage, such woman
being certified to be eligible for such payments by an authority
specified in this behalf by the regulations (hereinafter referred to as
maternity benefit);
(c) periodical payments to an Insured Person suffering from
disablement as a result of an employment injury sustained by him
as an employee for the purposes of this Chapter and certified to be
(d) periodical payments to such dependants of an Insured Person who dies
as a result of an employment injury sustained by him as an employee for
the purposes of this Chapter, as are entitled under this Chapter (hereinafter
referred to as dependants' benefit);
(e) medical treatment for and attendance on Insured Persons (hereinafter
referred to as medical benefit); and
(f) payment to the eldest surviving member of the family of an Insured
Person who has died, towards the expenditure on the funeral of the
deceased Insured Person, or, where the Insured Person did not have a
family or was not living with his family at the time of his death, to the
person who actually incurs the expenditure on the funeral of the deceased
Insured Person (to be known as funeral expenses):
. (2) The Corporation may, subject to such conditions as may be laid down
in the regulations, extend the medical benefits to the family of an Insured
Person.
(3) The qualification of a person to claim sickness benefit, maternity
benefit, disablement benefit and dependants' benefit and the conditions
subject to which such benefit may be given and the rate and period
thereof, shall be such as may be prescribed by the Central Government.
(4) Subject to the provisions of this Code and the rules made thereunder
Corporation’s power to promote measures for health, etc., of Insured
Persons. Section 33:
The Corporation may, in addition to the benefits specified in this Chapter,
promote measures for the improvement of the health and welfare of Insured
Persons and for the rehabilitation and re-employment of Insured Persons who
have been disabled or injured and may incur in respect of such measures,
expenditure from the Employees' State Insurance Fund within such limits as
may be prescribed by the Central Government.
Presumption as to accident arising in course of [Link]
34:
(1)For the purposes of this Chapter, an accident arising in the course of an
employee's employment shall be presumed, in the absence of evidence to
the contrary, to have arisen out of that employment.
(2) An accident happening to an employee in or about any premises at which
he is for the time being employed for the purpose of his employer's trade or
business shall be deemed to arise out of and in the course of his employment, if
it happens while he is taking steps, on an actual or supposed emergency at
those premises, to rescue, succour or protect persons who are, or are thought to
be or possibly to be, injured or imperilled, or to avert or minimise serious
damage to property.
(3) An accident occurring to an employee while commuting from his residence
Accidents happening while acting in breach of law, etc Section 35:
An accident shall be deemed to arise out of and in the course of an employee's
employment notwithstanding that he is at the time of the accident acting in
contravention of the provisions of any law applicable to him, or of any orders given
by or on behalf of his employer or that he is acting without instructions from his
employer, if—
(a)the accident would have been deemed so to have arisen had the act not been
done in contravention as aforesaid or without instructions from his employer, as
the case may be; and
(b)the act is done for the purpose of and in connection with the employer's trade or
business.

Occupational disease. Section 36:

(1)If an employee employed in any employment specified in Part A of the Third
Schedule contracts any disease specified therein as an occupational disease
peculiar to that employment, or if an employee employed in the employment
specified in Part B of that Schedule for a continuous period of not less than six
months contracts any disease specified therein as an occupational disease
peculiar to that employment or if an employee employed in any employment
specified in Part C of that Schedule for such continuous period as the Corporation
may specify by regulations in respect of each such employment, contracts any
disease specified in such Part C as an occupational disease peculiar to that
References to medical board Section 37:
(1)Any question—
(a) whether the relevant accident has resulted in permanent disablement; or
(b) whether the extent of loss of earning capacity can be assessed provisionally or finally; or
(c) whether the assessment of the proportion of the loss of earning capacity is provisional or
final; or
(d) in the case of provisional assessment, as to the period for which such assessment shall
hold good,

Dependants' benefit. Section 38:

. (1) If an Insured Person dies as a result of an employment injury sustained as an employee
under this Chapter (whether or not he was in receipt of any periodical payment for
temporary disablement in respect of the injury), dependants' benefit shall be payable to his
dependants specified in sub-clause (a) and sub-clause (b) of clause (24) of section 2 at such
rates and for such periods and subject to such conditions as may be prescribed by the
Central Government.

Medical benefit. Section 39:

(1)An Insured Person or (where such medical benefit is extended to his family) a member of
his family whose condition requires medical treatment and attendance shall be entitled to
receive medical benefit.
(2) Such medical benefit may be given either in the form of out-patient treatment and
attendance in a hospital or dispensary, clinic or other institution or by visits to the home of
the Insured Person or treatment as in-patient in a hospital or other institution.
(3) The qualification of an Insured Person and (where such medical benefit is extended to his
Provision of medical treatment by State Government or by
Corporation. Section 40:

(1)The State Government shall provide for Insured Persons and (where
such benefit is extended to their families) their families in the State,
reasonable medical, surgical and obstetric treatment: Provided that
the State Government may, with the approval of the Corporation,
arrange for medical treatment at clinics of medical practitioners on
such scale and subject to such terms and conditions as may be
agreed upon. (2) Where the incidence of sickness benefit payment to
Insured Persons in any State is found to exceed the all-India average,
the amount of such excess shall be shared between the Corporation
and the State Government in such proportion as may be fixed by
agreement between them:
General provisions as to benefits. Section 41:
(2)Save as may be provided in the regulations, no person shall be
entitled to commute for a lump sum any disablement benefit
admissible under this Chapter.
(3) A person who is in receipt of sickness benefit or disablement
benefit (other than benefit granted on permanent disablement) —
(a)shall remain under medical treatment at a dispensary, hospital,
clinic or other institution provided under this Chapter, and shall
carry out the instructions given by the medical officer or medical
attendant in-charge thereof;
(b) shall not while under treatment do anything which might retard
or prejudice his chances of recovery;
(c) shall not leave the area in which medical treatment provided by
this Chapter is being given, without the permission of the medical
officer, medical attendant or such other authority as may be
specified in this behalf by the regulations; and

(4) An Insured Person shall not be entitled to receive for the same
period—
(c)both sickness benefit and maternity benefit; or
(b) both sickness benefit and disablement benefit for temporary
disablement;
(6) If a person dies during any period for which he is entitled to a cash benefit under this
Chapter, the amount of such benefit up to and including the day of his death shall be
paid to any person nominated by the deceased person in writing in such form as may be
specified in the regulations or, if there is no such nomination, to the heir or legal
representative of the deceased person.
(7) (a) Any person eligible for availing dependant or disablement benefit under this
Chapter shall not be entitled to claim Employees’ Compensation from his employer under
Chapter VII

Corporation’s rights when an employer fails to register, etc. Section 42:

(1)If any employer, —
(a) fails or neglects to insure under section 28, an employee at the time of his
appointment or within such extended period as may be prescribed by the Central
Government, as a result of which the employee becomes disentitled to any benefit under
this Chapter; or
(b) insures under section 28, an employee on or after the date of accident which resulted
in personal injury to such employee which has the effect of making such employee
disentitled to receive any dependant benefit or disablement benefit from the
Corporation; or
(c) fails or neglects to pay any contribution which under this Chapter he is liable to pay in
respect of any employee and by reason thereof such employee becomes disentitled to
any benefit or becomes entitled to a benefit on a lower scale, then, the Corporation may,
on being satisfied in the manner prescribed by the Central Government that the benefit
is payable to the employee, pay to the employee benefit at such rate to which he is
Schemes for unorganised workers, gig workers and platform
workers. Section 45:
(1)Notwithstanding anything contained in this Chapter, the Central
Government may, by notification, frame scheme for unorganised workers,
gig workers and platform workers and the members of their families for
providing benefits admissible under this Chapter by the Corporation.

Appeal to High Court. Section 52:

(2)Save as expressly provided in this section, no appeal shall lie from an
order of an Employees' Insurance Court.
(2) An appeal shall lie to the High Court from an order of an Employees'
Insurance Court, if it involves a substantial question of law.
(3) The appeal shall be filed under this section within a period of sixty days
from the date of the order made by the Employees' Insurance Court.
(4) The provisions of sections 5 and 12 of the Limitation Act, 1963 shall apply
to appeals under this section.
(5) Where the Corporation has presented an appeal against an order of the
Employees' Insurance Court, that Court may, and if so directed by the High
Court, shall, pending the decision of the appeal, withhold the payment of any
sum directed to be paid by the order appealed against.
CHAPTER V – GRATUITY
Payment of gratuity:
(1)Gratuity shall be payable to an employee on the termination of his employment after
he has rendered continuous service for not less than five years,—
(a) on his superannuation; or
(b) on his retirement or resignation; or
(c) on his death or disablement due to accident or disease; or
(d) on termination of his contract period under fixed term employment; or
(e) on happening of any such event as may be notified by the Central Government:

Provided that in case of working journalist as defined in clause (f) of section 2 of the
Working Journalists and Other Newspaper Employees (Condition of Service) and
Miscellaneous Provisions Act, 1955, the expression "five years" occurring in this sub-
section shall be deemed to be three years:

Provided further that the completion of continuous service of five years shall not be
necessary where the termination of the employment of any employee is due to death or
disablement or expiration of fixed term employment or happening of any such event as
may be notified by the Central Government:

Provided also that in the case of death of the employee, gratuity payable to him shall be
paid to his nominee or, if no nomination has been made, to his heirs, and where any
such nominees or heirs is a minor, the share of such minor, shall be deposited with the
competent authority as may be notified by the appropriate Government who shall invest
the same for the benefit of such minor in such bank or other financial institution, as may
(2) For every completed year of service or part thereof in excess of six months,
the employer shall pay gratuity to an employee at the rate of fifteen days' wages
or such number of days as may be notified by the Central Government, based on
the rate of wages last drawn by the employee concerned:

Provided that in the case of a piece-rated employee, daily wages shall be

computed on the average of the total wages received by him for a period of three
months immediately preceding the termination of his employment, and, for this
purpose, the wages paid for any overtime work shall not be taken into account:

Provided further that in the case of an employee who is employed in a seasonal

establishment and who is not so employed throughout the year, the employer
shall pay the gratuity at the rate of seven days' wages for each season:
(3) The amount of gratuity payable to an employee shall not exceed such amount
as may be notified by the Central Government.
(4) For the purpose of computing the gratuity payable to an employee who is
employed, after his disablement, on reduced wages, his wages for the period
preceding his disablement shall be taken to be the wages received by him during
that period, and his wages for the period subsequent to his disablement shall be
taken to be the wages as so reduced.
(5) Nothing in this section shall affect the right of an employee to receive better terms
of gratuity under any award or agreement or contract with the employer.

(6) Notwithstanding anything contained in sub-section (1),—

(a) the gratuity of an employee, whose services have been terminated for any act, wilful
omission or negligence causing any damage or loss to, or destruction of, property
belonging to the employer, shall be forfeited to the extent of the damage or loss so
caused;
(b) the gratuity payable to an employee may be wholly or partially forfeited—
(i) if the services of such employee have been terminated for his riotous or disorderly
conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes
an offence involving moral turpitude, provided such offence is committed by him in the
course of his employment.

Continuous service. Section 54:

For the purposes of this Chapter,—
(A) an employee shall be said to be in continuous service for a period if he has, for that
period, been in uninterrupted service, including service which may be interrupted on
account of sickness, accident, leave, absence from duty without leave (not being
absence in respect of which an order treating the absence as break in service has been
passed in accordance with the standing orders, rules or regulations governing the
employees of the establishment), lay-off, strike or a lock-out or cessation of work not
due to any fault of the employee, whether such uninterrupted or interrupted service
(B) where an employee (not being an employee employed in a seasonal establishment)
is not in continuous service within the meaning of clause (A), for any period of one year
or six months, he shall be deemed to be in continuous service under the employer—
(a) for the said period of one year, if the employee during the period of twelve calendar
months preceding the date with reference to which calculation is to be made, has
actually worked under the employer for not less than—
(i) one hundred and ninety days, in the case of any employee employed below the
ground in a mine or in an establishment which works for less than six days in a
week; and
(ii) two hundred and forty days, in any other case.

Determination of amount of gratuity Section 56:

(1)A person who is eligible for payment of gratuity under this Chapter or any person
authorised, in writing, to act on his behalf shall send a written application to the
employer, within such time and in such form, as may be prescribed by the
appropriate Government, for payment of such gratuity.
(2) As soon as gratuity becomes payable, the employer shall, whether an application
referred to in sub-section (1) has been made or not, determine the amount of gratuity
and give notice in writing to the person to whom the gratuity is payable and also to the
competent authority specifying the amount of gratuity so determined.
(3) The employer shall arrange to pay the amount of gratuity within
thirty days from the date it becomes payable to the person to whom
the gratuity is payable.
(4) If the amount of gratuity payable under sub-section (3) is not
paid by the employer within the period specified in sub-section (3),
the employer shall pay, from the date on which the gratuity
becomes payable to the date on which it is paid, simple interest at
such rate, not exceeding the rate notified by the Central
Government from time to time for repayment of long term deposits:
Provided that no such interest shall be payable if the delay in the
payment is due to the fault of the employee and the employer has
obtained permission in writing from the competent authority for the
delayed payment on this ground.
(5) (a) If there is any dispute as to the amount of gratuity payable
to an employee under this Chapter or as to the admissibility of any
claim of, or in relation to, an employee for payment of gratuity, or
as to the person entitled to receive the gratuity, the employer shall
deposit with the competent authority such amount as he admits to
(c) The competent authority shall, after due inquiry and after giving
the parties to the dispute a reasonable opportunity of being heard,
determine the matter or matters in dispute and if, as a result of
such inquiry any amount is found to be payable to the employee,
the competent authority shall direct the employer to pay such
amount or, as the case may be, such amount as reduced by the
amount already deposited by the employer.
(d) The competent authority shall pay the amount deposited,
including the excess amount, if any, deposited by the employer, to
the person entitled thereto.
(e) As soon as may be after a deposit is made under clause (a), the
competent authority shall pay the amount of the deposit—
(i) to the applicant where he is the employee; or
(ii)(ii) where the applicant is not the employee, to the nominee or,
as the case may be, the guardian of such nominee or heir of the
employee if the competent authority is satisfied that there is no
dispute as to the right of the applicant to receive the amount of
gratuity.
Compulsory insurance Section 57
. (1) With effect from such date as may be notified by the appropriate Government in
this behalf, every employer, other than an employer or an establishment belonging to,
or under the control of, the Central Government or a State Government, shall, subject
to the provisions of sub-section (2), obtain an insurance in the manner prescribed by
the Central Government, for his liability for payment towards the gratuity under this
Chapter, from any insurance company regulated by the Authority as defined under
clause (b) of sub-section (1) of section 2 of the Insurance Regulatory and Development
Authority Act, 1999:
Provided that different dates may be appointed for different establishments or class of
establishments or for different areas.
(2) The appropriate Government may, subject to such conditions as may be prescribed
by the Central Government, exempt any employer who had already established an
approved gratuity fund in respect of his employees and who desires to continue such
arrangement, and every employer employing five hundred or more persons who
establishes an approved gratuity fund in the manner prescribed by the Central
Government from the provisions of sub-section (1).
(3) For the purposes of effectively implementing the provisions of this section, every
employer shall within such time as may be prescribed by the Central Government get
his establishment registered with the competent authority in the manner prescribed by
the appropriate Government and no employer shall be registered under the provisions
of this section unless he has taken an insurance referred to in sub-section (1) or has
established an approved gratuity fund referred to in sub-section (2).
(4) Where an employer fails to make any payment by way of premium in respect of
the insurance referred to in sub-section (1) or by way of contribution to an approved
gratuity fund referred to in sub-section (2), he shall be liable to pay the amount of
gratuity due under this Chapter (including interest, if any, for delayed payments)
forthwith to the competent authority.

Competent authority Section 58:

(1)The appropriate Government may, by notification, appoint any officer of that
Government having such qualifications and experience as may be prescribed by
that Government to be a competent authority for implementation of any provision
of this Chapter for such area as may be specified in the notification.
(2) Where more than one competent authority has been appointed for any area, the
appropriate Government may, by general or special order, regulate the distribution of
business among them.

(3) Any competent authority may, for the purpose of deciding any matter referred to
him for decision under this Chapter, choose one or more persons possessing special
knowledge of any matter relevant to the matter under reference to assist him in
holding the inquiry relating thereto.
CHAPTER VI -MATERNITY BENEFIT
Employment of, or work by, women prohibited during certain
period Section 59
. (1) No employer shall knowingly employ a woman in any
establishment during the six weeks immediately following the day of
her delivery, miscarriage or medical termination of pregnancy.
(2) No woman shall work in any establishment during the six weeks
immediately following the day of her delivery, miscarriage or medical
termination of pregnancy.
(3) Without prejudice to the provisions of section 62, no pregnant
woman shall, on a request being made by her in this behalf, be
required by her employer to do, during the period specified in sub-
section (4), any work which is of an arduous nature or which involves
long hours of standing or which in any way is likely to interfere with
her pregnancy or the normal development of the foetus or is likely to
cause her miscarriage or otherwise to adversely affect her health.
(4) The period referred to in sub-section (3) shall be—
(a) the period of one month immediately preceding the period of six
Right to payment of maternity benefit - Section 60:
. (1) Subject to the other provisions of this Code, every woman shall be entitled to,
and her employer shall be liable for, the payment of maternity benefit at the rate
of the average daily wage for the period of her actual absence, that is to say, the
period immediately preceding the day of her delivery, and any period immediately
following that day.
(2) No woman shall be entitled to maternity benefit unless she has actually worked
in an establishment of the employer from whom she claims maternity benefit, for a
period of not less than eighty days in the twelve months immediately preceding
the date of her expected delivery.
(3) The maximum period for which any woman shall be entitled to maternity
benefit shall be twenty-six weeks of which not more than eight weeks shall
precede the expected date of her delivery:
Provided that the maximum period entitled to maternity benefit by a woman
having two or more surviving children shall be twelve weeks of which not more
than six weeks shall precede the date of her expected delivery:

Provided further that where a woman dies during this period, the maternity benefit
shall be payable only for the days up to and including the day of her death:

Provided also that where a woman, having been delivered of a child, dies during
her delivery or during the period immediately following the date of her delivery for
(4) A woman who legally adopts a child below the age of three months or a
commissioning mother shall be entitled to maternity benefit for a period of
twelve weeks from the date the child is handed over to the adopting mother or
the commissioning mother, as the case may be.
(5) 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 as the employer and the woman
may mutually agree.

Continuance of payment of maternity benefit in certain [Link]

61
Every woman entitled to the payment of maternity benefit under this Chapter,
shall, notwithstanding the application of Chapter IV to the factory or other
establishment in which she is employed, continue to be so entitled until she
becomes qualified to claim maternity benefit under section 32.

Notice of claim for maternity benefit and payment thereof. Section 62

. (1) Any woman employed in an establishment and entitled to maternity benefit
under the provisions of this Chapter may give notice in writing in such form as
may be prescribed by the Central Government, to her employer, stating that her
maternity benefit and any other amount to which she may be entitled under this
(2) In the case of a woman who is pregnant, such notice shall state the date from which
she will be absent from work, not being a date earlier than eight weeks from the date of
her expected delivery.
(3) Any woman who has not given the notice when she was pregnant may give such
notice as soon as possible after her delivery.
(4) On receipt of the notice, the employer shall permit such woman to absent herself
from the establishment during the period for which she receives the maternity benefit.
(5) The amount of maternity benefit for the period preceding the date of her expected
delivery shall be paid in advance by the employer to the woman on production of such
proof as may be prescribed by the Central Government that the woman is pregnant, and
the amount due for the subsequent period shall be paid by the employer to the woman
within forty-eight hours of production of such proof as may be prescribed by the Central
Government that the woman has been delivered of a child.
(6) The failure to give notice under this section shall not disentitle a woman to maternity
benefit or any other amount under this Chapter if she is otherwise entitled to such
benefit or amount and in any such case an Inspector-cum-Facilitator may either of his
own motion or on an application made to him by the woman, order the payment of such
benefit or amount within such period as may be specified in the order
Payment of maternity benefit in case of death of a woman Section 63:
If a woman entitled to maternity benefit or any other amount under this Chapter, dies
before receiving such maternity benefit or amount, or where the employer is liable for
maternity benefit under the second proviso to sub-section (3) of section 60, the
employer shall pay such benefit or amount to the person nominated by the woman in
the notice given under section 62 and in case there is no such nominee, to her legal
representative.

Payment of medical bonus. Section 64

Every woman entitled to maternity benefit under this Chapter shall also be entitled to
receive from her employer a medical bonus of three thousand five hundred rupees or
such amount as may be notified by the Central Government, if no pre-natal confinement
and post-natal care is provided for by the employer free of charge.
Leave for miscarriage, etc. Section 65
(1) In case of miscarriage, or medical termination of pregnancy, a woman shall, on
production of such proof as may be prescribed by the Central Government, be entitled
to leave with wages at the rate of maternity benefit, for a period of six weeks
immediately following the day of her miscarriage or, as the case may be, her medical
termination of pregnancy. (2) In case of tubectomy operation, a woman shall, on
production of such proof as may be prescribed by the Central Government, be entitled
to leave with wages at the rate of maternity benefit for a period of two weeks
immediately following the day of her tubectomy operation. (3) A woman suffering from
illness arising out of pregnancy, delivery, premature birth of child, miscarriage or
medical termination of pregnancy shall, on production of such proof as may be
Nursing breaks. Seation 66
. Every woman delivered of a child who returns to duty after such delivery shall, in
addition to the interval for rest allowed to her, be allowed in the course of her daily work
two breaks of such duration as may be prescribed by the Central Government, for
nursing the child until the child attains the age of fifteen months.

Creche facility. Section 67

7. (1) Every establishment to which this Chapter applies, in which fifty employees or such
number of employees as may be prescribed by the Central Government, are employed
shall have the facility of crèche within such distance as may be prescribed by the Central
Government, either separately or along with common facilities:
Provided that the employer shall allow four visits a day to the crèche by the woman,
which shall also include the intervals of rest allowed to her:

Dismissal for absence during pregnancy. Section 68

(1)When a woman absents herself from work in accordance with the provisions of this
Chapter, it shall be unlawful for her employer to discharge or dismiss her during or on
account of such absence or to give notice of discharge or dismissal on such a day that
the notice will expire during such absence, or to vary to her disadvantage any of the
conditions of her service:
Provided further that where the dismissal is for any gross misconduct as may be
prescribed by the Central Government, the employer may, by order in writing,
communicated to the woman, deprive her of the maternity benefit or medical bonus, or
both
No deduction of wages in certain cases. Section 69
. No deduction from the normal and usual daily wages of a woman
entitled to maternity benefit under the provisions of this Chapter
shall be made by reason only of—
(a)the nature of work assigned to her by virtue of the provisions
contained in section 59; or

(b) breaks for nursing the child allowed to her under the provisions
of section 66.

Forfeiture of maternity benefit. Section 70

A woman who works for remuneration during the period she has
been permitted by an employer to absent herself for availing the
maternity benefits provided under this Chapter shall not be entitled
to receive maternity benefit for such period.
Duties of employer Section 71
An abstract of the provisions of this Chapter and the rules relating
thereto in the language or languages of the locality shall be
Power of Inspector cum
Facilitator to direct payments to be made. Section 72
(a)maternity benefit or any other amount to which she is entitled
under this Chapter and any person claiming that payment due
under this Chapter has been improperly withheld;
(b) her employer has discharged or dismissed her during or on
account of her absence from work in accordance with the
provisions of this Chapter, may make a complaint to the Inspector-
cum-Facilitator.
(2) The Inspector-cum-Facilitator may, on receipt of a complaint
referred to in sub-section (1), make an inquiry or cause an inquiry
to be made and if satisfied that—
(b)payment has been wrongfully withheld, may direct the payment
to be made in accordance with his order in writing;
(b) she has been discharged or dismissed during or on account of
her absence from work in accordance with the provisions of this
Chapter, may pass such orders as he deems just and proper
according to the circumstances of the case. (3) Any p
EMPLOYEE'S COMPENSATION