Overview of the Code on Social Security, 2020 The Code on Social Security, 2020 is a landmark piece of legislation in India that aims to amend and consolidate the laws relating to social security with the goal to extend social security to all employees and workers whether in the organized or unorganized or any other sectors. It replaces nine central labor laws, integrating them into a single comprehensive framework to simplify compliance and expand the safety net for the Indian workforce. The Code came into effect from 21 November 2025. Key Takeaways The code merges nine existing Social Security Acts into one framework, ensuring universal social protection for organized, unorganized, gig, and platform workers. Extends EPFO and ESIC coverage nationwide, bringing more establishments and workers under social security benefits. Recognizes Gig and Platform workers for the first time and establishes a Social Security Fund for their welfare. Strengthens women-centric provisions including 26 weeks of maternity leave, work-from-home option, and crèche facilities. Promotes ease of doing business through digital records, decriminalization and compounding of offences, and a transparent, technology-driven Inspector cum facilitator system. Categories of Workers One of the most significant features of the 2020 Code is the expanded definition of workers, bringing previously excluded groups under the ambit of social security benefits. Organized Sector Workers - Organized sector workers are those employed by establishments that are generally registered and follow fixed sets of rules and regulations. This category traditionally enjoyed benefits like Provident Fund and Gratuity, which are maintained and streamlined under the new Code. Unorganized Sector Workers - The Code defines unorganized workers as those who are home-based, self-employed, or wage workers in the unorganized sector. This also includes workers in the organized sector who are not covered by the Acts defined in the schedules. The Code empowers the Central and State governments to frame specific welfare schemes for these individuals covering life and disability, health and maternity benefits, and old age protection. Gig Workers - A "gig worker" is defined as a person who performs work or participates in a work arrangement and earns from such activities outside of the traditional employer-employee relationship. This inclusion recognizes the modern "on-demand" economy where individuals take up short-term tasks or projects. Platform Workers - Platform workers are individuals engaged in an organization that provides specific services using an online platform to connect with users. While often overlapping with gig workers, platform workers are specifically categorized to ensure that digital labor platforms contribute to a social security fund for these individuals. Benefits to workers The Code categorizes social security into several distinct functional areas: Employees' Provident Fund (EPF): Retirement and savings benefits. Employees' State Insurance (ESI): Medical, sickness, and disability benefits. Gratuity: A lump-sum payment for long-term service (generally five years, though reduced for certain categories like working journalists). Maternity Benefit: Paid leave and medical bonus for women employees. Employee's Compensation: Compensation for injury or death caused by accidents arising out of and in the course of employment. The following are the benefits for the workers. Gratuity to Fixed-Term Employees - Under Section 53 of the code, the Government has redcued the eligibility requirement for gratuity for Fixed Term Employees (FTEs) from five years to one year. In case where the employee completes one year of continuous service, gratuity shall be applicable on proportionate basis. Universal Coverage under EPFO - The Employees’ Provident Fund (EPF) provisions apply to all establishments that have 20 or more employees, regardless of the type of industry. Uniform Definition of “Wages” - As per the Code, the definition of “Wage” includes basic pay, dearness allowance, and retaining allowance, if any. If other pay-outs such as bonus, house rent allowance, conveyance allowance, overtime allowance, or commission exceed 50% of the total remuneration (or such percentage as notified by the Government), the excess amount will be added back to wages. Expanded Definition of “Family” - The Code expands the definition of “family” to include the mother-in-law and father-in-law of a woman employee (subject to an income cap). It also includes a minor unmarried brother or sister who is wholly dependent on the insured person, if the parents are not alive. This expansion increases the coverage of family members eligible for ESIC benefits. Commuting Accidents Covered under Employee’s Compensation - Any accident that happens while commuting to or from work will be considered as having occurred “in the course of employment.” Affected employees or their families can receive compensation or ESIC benefits in such cases. Extension of ESIC Coverage - Under the Code, ESIC coverage has been extended across India. Additionally, Voluntary ESIC membership is also allowed for establishments with fewer than 10 employees, if both the employer and employees agree to join. For hazardous or life-threatening occupations, the minimum limit of 10 workers has been removed. ESIC coverage is now mandatory even for a single worker engaged in such work. ESIC benefits can also be extended to plantation workers if the employer chooses to opt in. Pro-Women Provisions Maternity Benefit Entitlement - Every woman employee who has worked for at least 80 days in the 12 months before the expected delivery is eligible for maternity benefit equal to her average daily wages during the leave period. The maximum duration of maternity leave is 26 weeks, of which up to 8 weeks can be taken before delivery. A woman who adopts a child below 3 months of age or a commissioning mother (a biological mother who uses surrogacy) is entitled to 12 weeks of maternity benefit from the date of adoption or when the child is handed over. Work from Home - To provide more flexibility to women returning after maternity leave, the Code allows them to work from home, if the nature of work permits. The employer may permit work from home based on mutual agreement between the employer and the employee. Simplified Certification for proof of Delivery, etc. - Proof of maternity-related conditions such as pregnancy, delivery, miscarriage, or related illness has been simplified under the Code. Medical certificates can now be issued by: A registered medical practitioner/An accredited social health activist (ASHA worker)/A qualified auxiliary nurse, or A midwife Medical Bonus - Under Section 64, if the employer does not provide free pre-natal and post-natal care, the woman employee is entitled to a medical bonus of ₹3,500. Nursing Breaks - After returning to work post-childbirth, a woman employee is entitled to two nursing breaks each day for nursing her child until the child attains 15 months of age. Special rights - pregnant women and adolescents are strictly barred from engaging in hazardous processes. Crèche Facility Every establishment with 50 or more employees must provide a crèche facility within a prescribed distance. This requirement is now gender-neutral and applies to all types of establishments. The employer must allow four visits a day by the woman to the crèche which includes the rest intervals. Establishments can avail common crèche facility of the Central Government, State Government, municipality or private entity or provided by non-Governmental organisation or by any other organization or group of establishments who may pool their resources for setting up of common crèche in the manner as they may agree for such purpose. If a crèche facility is not provided, the employer must pay a crèche allowance not less than ₹500 per month per child (for up to two children). Safety for Hazardous Sector Workers Safety Standards: The Occupational Safety, Health and Working Conditions Code, 2020 (OSH&WC) highlights national standards to be followed for use, handling, storage, and transport of hazardous substances. In order to further enhance the safety safeguards employers must conduct risk assessment, obtain approval, and maintain emergency response systems. Health & Medical Protection: Earlier, medical & health records were maintained manually and lacked portability and long-term traceability. Now, health records are mandatory and accessible to employees and inspectors, enabling transparency and long-term portability. Additionally, under the new Codes, pre-employment, periodic, and post-exposure medical examinations are mandatory, along with a free annual health check-up for all workers, ensuring early detection of occupational diseases that reduces medical costs and supports a healthier, more productive workforce. Protective & Welfare Measures: Under the new provisions, employers must provide and maintain PPE (personal protective equipment) such as helmets, gloves, respirators, and goggles. Additionally, ensuring improved sanitation and hygiene standards is also required- by mandating canteens, rest shelters, washing facilities, first aid, ambulance rooms, and cooling areas in high-temperature workplaces. Employers need to adhere by the prescribed maximum working hours of 8 hours per day and 48 hours per week. Training & Awareness: Earlier, trainings were not compulsory and varied by sector. Now, mandatory training sessions on the safe handling, storage, transport, and disposal of hazardous materials have been introduced to assist workers. Social Security: To ensure efficient social security provisions, immediate compensation for occupational diseases or accidents is ensured under the Social Security Code, 2020 (SS) / ESIC. Besides, workers are also entitled to ESIC benefits (medical, occupational disease, injury, disability, dependents’ benefits). Other benefits such as PF, gratuity, maternity, employment injury compensation and old-age protection (pension) are also provided, along with digital health and social security records that enhance transparency and portability. Special Rights: The Right is explicitly guaranteed under OSH&WC Code wherein workers may refuse dangerous work that are likely to cause serious injury or death, with mandatory employer investigation and zero penalty for refusal by workers. Besides, pregnant women and adolescents also avail benefits of special rights, as they are strictly barred from engaging in hazardous processes. Safety supervision is also mandatory for women workers in permitted tasks. Pro-Growth Provisions Digitalisation - The Code provides for maintaining all records, registers, and returns in electronic form. This will reduce compliance costs for employers and make processes simpler and more efficient. Limitation on Inquiry - A five-year limit has been introduced for starting any inquiry under the Employees’ Provident Fund to determine applicability or recover dues. Such inquiries must be completed within two years from the date they begin, with a possible extension of one year if approved by the Central Provident Fund Commissioner (CPFC). This reform helps improve timely compliance and faster case resolution. Reduced Deposit for Appeals - For filing appeal before tribunal against the order of EPFO officer, the deposit of 25% of the awarded amount determined by the EPFO officer will be required to be deposited by the employer against existing provision of between 40% to 70% of the awarded amount on discretion of the tribunal. Self-Assessment of Cess - New provision of self-assessment of cost of construction and payment of cess thereon for construction of building or other construction works has been introduced. This will enable faster and easier collection of cess, which will be used for the welfare of Building and Other Construction Workers. ESIC for Plantations - As per existing Act, plantation owners are not covered by ESIC Schemes. The Code now gives them the option to join ESIC voluntarily. Decriminalization of Offences -The Code has mandated that a 30-day notice of improvement be given to the employer in case of any violation, allowing time to rectify non-compliance. This promotes fairness, provides an opportunity for correction, and encourages voluntary adherence rather than punitive enforcement. Further, the Code has replaced imprisonment with monetary fines for 13 offences, and 7 violations carrying imprisonment of less than one year can now be compounded into penalties or fines. Replacing criminal penalties with fines reduces the fear of imprisonment, encourages voluntary compliance, reduces litigation, and promotes ease of doing business. Inspector-cum-Facilitator - Under Section 72 of the Code, Inspector cum facilitator in place of inspector and randomized web-based inspection system aims to reduce the traditional “inspector raj,” where inspections were often seen as intrusive and burdensome. Inspectors will now function as facilitators, helping employers comply with laws, rules, and regulations rather than merely policing them. Social Security Organizations The Code establishes various bodies to administer the different categories of benefits and oversee the welfare of the different worker classes. Central Board and State Boards - The Central Board of Trustees continues to administer the Provident Fund, Pension, and Insurance schemes. Similarly, the Employees' State Insurance Corporation (ESIC) manages health and medical benefits. Social Security Boards for Unorganized Workers - The Code mandates the constitution of National and State Social Security Boards to recommend and monitor schemes specifically designed for unorganized workers, gig workers, and platform workers. Social Security Fund: A new fund created specifically to finance the benefits for unorganized workers, gig workers, and platform workers. Access the The Code on Social Security, 2020 ; Occupational Safety, Health and Working Conditions Code, 2020