labourcodes360Labour Codes HandbookInteractive edition
Contents
ContentsCompliance Handbook for Employers
Contents

What is in this handbook

Chapter 1About the handbook3Chapter 2Reforms introduced under the Labour Codes4Chapter 3The Code on Wages, 201953.1 Payment of wages53.2 Working hours and overtime53.3 Registers and records63.4 Display on notice board63.5 Authorised deductions and the 50% limit63.6 Bonus6Chapter 4The Industrial Relations Code, 202074.1 Bipartite committees74.2 Standing Orders74.3 Recognition of negotiating union or negotiating council84.4 Notice of change in service conditions84.5 Lay-off, retrenchment and closure84.6 Special provisions for 300 or more workers94.7 Notice of strike or lockout94.8 Re-employment of retrenched workers9Chapter 5The Occupational Safety, Health and Working Conditions Code, 2020105.1 Registration105.2 Notice of commencement and cessation105.3 Duties of employer105.4 Safety Committees and Safety Officers105.5 Safety, health, working conditions and welfare facilities115.6 Registers, records and returns125.7 Notice of accidents, dangerous occurrences and diseases125.8 Women at night and in dangerous operations125.9 Contract labour135.10 Inter-State migrant workers135.11 Additional provisions13Chapter 6The Code on Social Security, 2020146.1 Employees' Provident Fund146.2 Employees' State Insurance146.3 Gratuity156.4 Maternity benefit156.5 Employee's compensation166.6 Unorganised, gig and platform workers166.7 Building or other construction work176.8 Employment exchanges and career centres17Chapter 7Summary of action points for employers18

Interactive tools

Applicability checker19Key timelines and deadlines20

Annexures

Annexure 1Key definitions: the Code on Wages, 201921Annexure 2Key definition: the Industrial Relations Code, 202022Annexure 3The Third Schedule, Industrial Relations Code, 202023Annexure 4The Third Schedule, OSH & WC Code, 202024Annexure 5The First Schedule, Code on Social Security, 202025About this edition26
Chapter 1, About the handbookCompliance Handbook for Employers
Chapter 1

About the handbook

The Second National Commission on Labour (2002) had recommended, inter alia, that the existing labour laws should be broadly grouped into four or five Labour Codes on a functional basis. Accordingly, the Ministry of Labour and Employment, after extensive consultations with the stakeholders, rationalised, simplified and amalgamated the relevant provisions of the labour laws into four Codes. For employers, this means clearer rules, simpler procedures and reduced compliances.

This handbook has been prepared to make employers aware of the new provisions in a simplified manner. Each chapter provides an overview of compliances under each Code, with a focus on making compliance simpler, faster and easier. The handbook primarily covers provisions of the Codes and corresponding Rules where the Central Government alone is required to frame the Rules.

Disclaimer. This handbook is intended solely as a reference document for employers on compliance provisions of the new Labour Codes and does not purport to be a legal document. In the event of any discrepancy between the contents of this handbook and the provisions of the new Labour Codes and Rules, the latter shall prevail. Any such discrepancies noticed may kindly be brought to the attention of the Ministry of Labour and Employment for necessary clarification or correction.
Chapter 2, Reforms introduced under the Labour CodesCompliance Handbook for Employers
Chapter 2

Reforms introduced under the Labour Codes

India's labour law framework had become complex over time, creating significant compliance burdens through multiple registrations, licences and returns. Evolving work patterns and new forms of employment underscored the need for a simpler and more coherent system, leading the Government of India to consolidate and rationalise 29 Central Labour Acts into four Labour Codes.

The four Labour Codes came into force on 21 November 2025 and the central rules corresponding to the Codes were notified on 8 May 2026.

Through enactment of the four Labour Codes, 1,228 sections were streamlined into 480, and 1,436 rules were rationalised to 359, while multiple returns (31) have been replaced with a single electronic return. The number of forms has reduced from 181 to 73, and registers to be maintained by employers have reduced from 84 to just 8. Provisions such as compounding of offences and improvement notices have been introduced for the first time, promoting a facilitative rather than punitive approach towards compliance.

PCS note. The Ministry's text prints the commencement date as 21st November 2026; the four Codes came into force on 21 November 2025, which is the date used here. The narrative gives the post-Code form count as 73, while the table below totals 72 (6 + 18 + 20 + 28).
ItemUnder erstwhile ActsUnder Labour Codes
WagesIROSH&WCSSTotalWagesIROSH&WCSSTotal
Rules1631058683001,436545018669359
Returns6321131Single (electronic)
Forms20375569181618202872
Registers2435618420518
Registration––628*Single
Licence–––44Single
Compounding–Introduced for the first time
Improvement notice–Introduced for the first time

* Factories, BoCW, Contract Labour, Plantation, Motor Transport, ISMW, ESI and EPF. IR: Industrial Relations; OSH&WC: Occupational Safety, Health and Working Conditions; SS: Social Security.

Chapter 3, The Code on Wages, 2019Compliance Handbook for Employers
Chapter 3

The Code on Wages, 2019

The Code on Wages, 2019 amalgamates four wages and payment-related labour laws. It aims to balance the rights of workers and facilitate ease of compliance for employers. The Code safeguards employees' interests through universal minimum wages, ensuring dignity and timely payment of wages. It supports women workers through equal pay and representation, fostering inclusive participation. By ensuring minimum wages to all employees, it drives productivity and labour welfare, strengthening economic growth, employment generation and workplace equity.

Laws subsumed: the Payment of Wages Act, 1936; the Minimum Wages Act, 1948; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976. Definitions of wages and employee are in Annexure 1.

3.1Payment of wages

Sec 3, 5, 6, 17

  1. The employer shall pay the minimum rates of wages notified by the appropriate Government to employees. (Section 5)
  2. Employers shall not discriminate on the basis of gender in paying wages for the same or similar work, and must not discriminate on the basis of sex while recruiting employees. (Section 3)
  3. Every establishment shall fix wage periods, which may be daily, weekly, fortnightly or monthly. All wages must be paid within the prescribed timelines (Section 6):
    Wage periodPay by
    DailyAt the end of the day
    WeeklyOn the last working day of the week
    FortnightlyBefore the end of the second day after the end of the fortnight
    MonthlyBefore the expiry of the seventh day of the succeeding month
  4. When an employee leaves an establishment, whether by resignation, dismissal or termination, the employer is required to pay all due wages within two working days. (Section 17)
  5. Payment of wages to contract employees: the contractor shall pay the wages to the contract labour employed in the establishment. Where employees are employed in an establishment through a contractor, the company, firm, association or other person who is the proprietor of the establishment shall pay the contractor the amount payable in respect of the wages of those employees.

3.2Working hours and overtime

Sec 14

If an employee whose minimum rate of wages has been fixed under the Code works beyond normal working hours, the employer must pay overtime for each extra hour at not less than twice the normal rate of wages.

Chapter 3, The Code on Wages, 2019 (continued)Compliance Handbook for Employers

3.3Registers and records

Sec 50

The employer must maintain the following in the prescribed form:

  • Attendance register-cum-muster roll
  • Wage register
  • Overtime register
  • Register of fines and deductions
  1. These registers must always be kept updated and may be maintained in physical or electronic form. Records shall be preserved for a period of five years.
  2. Employers must issue wage slips in the prescribed form to all employees on or before payment of wages.

3.4Display on notice board

Sec 50

Employers must display the following on the notice board in English, Hindi and the local language:

  • Minimum rates of wages
  • Normal working hours
  • Wage period
  • Date of wage payment
  • Name and address of the Inspector-cum-Facilitator

3.5Authorised deductions and the 50% limit

Sec 18

Employers must not make any deductions except those authorised under the Code. These include deductions for absence from duty; damage or loss; recovery of advances or loans; fines imposed after giving the employee an opportunity to be heard; and house accommodation or amenity or service, on acceptance.

Deductions shall not exceed 50% of wages during the wage period. If deductions exceed 50% of wages, the excess must be recovered in future wage periods, ensuring deductions in any month do not exceed 50% of wages.

3.6Bonus

Sec 26

  1. Bonus must be paid to every employee who draws wages up to the limit set by the appropriate Government and has worked for at least 30 days in the accounting year, that is, the year commencing on 1 April.
  2. The annual bonus is payable at a minimum rate of 8.33% and a maximum of 20% of the wages earned by the employee.
Chapter 4, The Industrial Relations Code, 2020Compliance Handbook for Employers
Chapter 4

The Industrial Relations Code, 2020

The Industrial Relations Code, 2020 consolidates and rationalises the provisions relating to trade unions, conditions of employment in industrial establishments or undertakings, and the investigation and settlement of industrial disputes. It amalgamates three central legislations into a single Code.

Laws subsumed: the Trade Unions Act, 1926; the Industrial Employment (Standing Orders) Act, 1946; and the Industrial Disputes Act, 1947. The definition of worker is in Annexure 2.

4.1Bipartite committees

Sec 3, 4

(a) Works Committee (Section 3)

  • Employers of industrial establishments that employ, or have employed, 100 or more workers in the preceding 12 months may be required by the appropriate Government, through a general or special order, to constitute a Works Committee.
  • The Works Committee must function with the objective of promoting and maintaining harmonious relations between the employer and workers.
  • The number of representatives of workers shall not be less than the number of representatives of the employer.

(b) Grievance Redressal Committee (Section 4)

  • Every industrial establishment employing 20 or more workers must constitute one or more Grievance Redressal Committees to address individual employee grievances.
  • The Committee must have an equal number of representatives from the employer and the workers, and the total number of members must not exceed 10.
  • The Chairperson shall be selected alternately from employer and worker representatives on a rotational basis every year.
  • The Committee must ensure adequate representation of women workers, at least proportionate to their share in the total workforce.
  • Any aggrieved worker can submit an application to the Committee within one year from the date on which the cause of action arises.
  • The Committee should complete its proceedings within 30 days from the date of receipt of the application.

4.2Standing Orders

Sec 28, 29, 30

  1. The provisions on Standing Orders apply to industrial establishments employing 300 or more workers.
  2. The Central Government has notified Model Standing Orders for the mines sector, manufacturing sector and service sector for uniform application.
  3. Employers may adopt the Model Standing Orders and need to intimate the concerned Certifying Officer.
  4. Where the Model Standing Orders are not adopted, employers must prepare draft Standing Orders within six months of commencement of the Code, based on the notified Model Standing Orders.
  5. Employers must consult the trade unions, the recognised negotiating union, or the members of the negotiating council before finalising the draft Standing Orders.
  6. The draft Standing Orders must be submitted to the Certifying Officer, electronically or otherwise, for certification.
  7. The Certifying Officer must certify the Standing Orders or modifications within 60 days, failing which the draft or modifications shall be deemed to be certified.
Chapter 4, The Industrial Relations Code, 2020 (continued)Compliance Handbook for Employers

4.3Recognition of negotiating union or negotiating council

Sec 14

  1. If only one registered trade union is functioning in an industrial establishment, the employer must, subject to prescribed criteria, recognise that union as the sole negotiating union for the workers.
  2. If more than one registered trade union operates, the employer must recognise the trade union with the support of 51% or more of the workers on the muster roll as the negotiating union.
  3. If multiple registered trade unions exist and none has the support of 51% or more workers, the employer must constitute a Negotiating Council, with representatives from registered trade unions having the support of at least 20% of the total workers: one representative for each 20% of membership, and proportionate representation for any remaining fraction.
  4. Recognition of the Negotiating Council is valid for three years from the date of its constitution. This may be extended by mutual agreement between the employer and the trade union, up to a maximum of five years in total.

4.4Notice of change in service conditions

Sec 40

If an employer intends to change any service condition listed in the Third Schedule (Annexure 3), the employer must give the prescribed notice to the affected workers. The change can take effect only after 21 days from the date of the notice.

4.5Lay-off, retrenchment and closure

Chapter IX, Sec 83

  1. Industrial establishments such as factories, mines and plantations employing 50 to 299 workers must serve notice on the appropriate Government, or such authority as it specifies, before carrying out any retrenchment or closure.
  2. If a worker is laid off, the employer must pay compensation equal to 50% of the basic wages and dearness allowance that the worker would have received had she or he not been laid off.
  3. Employers must give one month's prior notice to a worker before retrenchment.
  4. Retrenchment compensation must be paid at the rate of 15 days' average pay for each completed year of continuous service.
  5. Employers must also contribute an amount equal to 15 days' wages for each retrenched worker to the Workers' Re-Skilling Fund created by the appropriate Government. The amount shall be credited by the appropriate Government to the retrenched worker's account within 45 days. (Section 83)
  6. An employer planning to close an industrial establishment must serve prior notice on the appropriate Government at least 60 days in advance, clearly stating the reasons for closure, and simultaneously serve a copy of the application on the workers' representatives.
  7. When ownership or management of an establishment is transferred, workers with at least one year of continuous service are entitled to notice and retrenchment compensation.
Chapter 4, The Industrial Relations Code, 2020 (continued)Compliance Handbook for Employers

4.6Special provisions for 300 or more workers

Chapter X

  1. Industrial establishments such as factories, mines and plantations employing 300 or more workers must obtain prior permission from the appropriate Government before any lay-off, retrenchment or closure.
  2. If a worker is laid off, the employer must pay compensation equal to 50% of the basic wages plus dearness allowance that the worker would have received had they not been laid off.
  3. Employers must give three months' prior notice before retrenchment.
  4. Retrenchment compensation must be paid at the rate of 15 days' average pay for each completed year of continuous service.
  5. Employers must contribute an amount equal to 15 days' wages per retrenched employee to the Workers' Re-Skilling Fund.
  6. An employer intending to close an industrial establishment must apply for prior permission at least 90 days in advance, clearly stating the reasons for closure, and simultaneously serve a copy of the application on the workers' representatives.
  7. In case of transfer of ownership or management, workers with at least one year of continuous service are entitled to notice and retrenchment compensation.

Chapter IX and Chapter X compared

50 to 299 workers (Ch IX)300 or more workers (Ch X)
Government roleNotice before retrenchment or closurePrior permission for lay-off, retrenchment or closure
Retrenchment notice to workerOne monthThree months
ClosureNotice at least 60 days in advancePermission sought at least 90 days in advance
Lay-off compensation50% of basic wages and dearness allowance
Retrenchment compensation15 days' average pay per completed year of continuous service
Re-Skilling Fund15 days' wages per retrenched worker

4.7Notice of strike or lockout

Sec 60, 62

  1. If an employer receives a strike notice from persons employed in an industrial establishment, the employer must report it within five days to the appropriate Government or the prescribed authority, and to the Conciliation Officer.
  2. If the employer issues a lockout notice, it must be reported within five days to the appropriate Government or the prescribed authority, and to the Conciliation Officer.
  3. Conciliation proceedings are deemed to commence on the date of the first meeting held by the Conciliation Officer in an industrial dispute after receipt of the notice of strike or lockout. (Section 60)
  4. If a strike or lockout is already in existence, the employer must inform the Conciliation Officer on the same day it is declared, in the manner specified by the appropriate Government.

4.8Re-employment of retrenched workers

Sec 72

If vacancies occur within one year of retrenchment, the employer must give preference to retrenched workers who are citizens of India.

Chapter 5, The Occupational Safety, Health and Working Conditions Code, 2020Compliance Handbook for Employers
Chapter 5

The Occupational Safety, Health and Working Conditions Code, 2020

The OSH&WC Code, 2020 consolidates and simplifies 13 Central labour laws into a single comprehensive legislation, reducing the multiplicity of compliances and bringing uniformity across industries, States and Union Territories. It improves transparency, enhances worker welfare and promotes ease of doing business through single registration, an all-India single licence, electronic filings and time-bound approvals. The Code ensures safe and healthy working conditions in factories, beedi and cigar, mines, docks, plantations, construction, motor transport and other establishments with 10 or more workers.

Laws subsumed: the Factories Act, 1948; the Plantations Labour Act, 1951; the Mines Act, 1952; the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955; the Working Journalists (Fixation of Rates of Wages) Act, 1958; the Motor Transport Workers Act, 1961; the Beedi and Cigar Workers (Conditions of Employment) Act, 1966; the Contract Labour (Regulation and Abolition) Act, 1970; the Sales Promotion Employees (Conditions of Service) Act, 1976; the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979; the Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981; the Dock Workers (Safety, Health and Welfare) Act, 1986; and the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.

5.1Registration

Sec 3

  1. Every employer of an establishment employing 10 or more employees must apply for registration electronically within 60 days of its existence, on the Shram Suvidha Portal or the portal prescribed by the appropriate Government.
  2. The certificate of registration is issued electronically in Form III within seven days. If the registering officer fails to register, registration is deemed granted and the certificate is auto-generated.
  3. An establishment already registered under any other central labour law for the time being in force does not need to register again, but the employer must intimate the registration details within the prescribed period.
  4. For a registered establishment, the employer must update any change in particulars electronically on the portal within 30 days.

5.2Notice of commencement and cessation

Sec 5

  1. Employers must send an electronic notice of commencement or cessation of operations of a factory, mine, contract labour establishment, or building or other construction work to the authority, within the time prescribed by the appropriate Government.
  2. For mines, the employer must give not less than 30 days' prior notice of the commencement, reopening, cessation, discontinuation or abandonment of operations, or closing of the mine, in Form VII.

5.3Duties of employer

Sec 6, 7, 10 to 12

Every employer shall comply, inter alia, with the following duties:

  1. Issue an appointment letter to all employees.
  2. Provide annual health check-ups free of cost.
  3. Ensure the workplace is free from hazards likely to cause injury or disease.

5.4Safety Committees and Safety Officers

Sec 22

  1. An establishment must constitute a Safety Committee, as prescribed by the appropriate Government by general or special order, consisting of representatives of both the employer and the workers.
  2. The employer shall appoint Safety Officers in the following establishments:
    EstablishmentWorkers
    Building or other construction work250 or more
    Mine100 or more
    Factory500 or more
    Factory carrying on a hazardous process250 or more
Chapter 5, The Occupational Safety, Health and Working Conditions Code, 2020 (continued)Compliance Handbook for Employers

5.5Safety, health, working conditions and welfare facilities

Sec 23, 24; Rules 22 to 63

Employers are responsible for maintaining safe, healthy and suitable working conditions, including cleanliness and hygiene; proper ventilation and lighting; safe drinking water; separate toilet facilities for male, female and transgender workers; adequate space; and effective arrangements for waste disposal, as prescribed. (Section 23)

Factories (Rules 22 to 25)

  • Maintain cleanliness, hygiene, effective drainage and safe flooring.
  • Ensure adequate ventilation and humidity control.
  • Control exposure to dust, fumes, confined spaces and other workplace hazards.
  • Conduct heat stress assessments where artificial humidification is used.
  • Provide appropriate personal protective equipment, drinking water, work-rest cycles, health monitoring and worker training.

Mines (Rules 26 to 29)

  • Comply with all general health and safety requirements applicable to mines.
  • Regularly monitor air quantity, temperature, humidity, respirable dust and hazardous gases.

Building or other construction work (Rules 30 to 33)

  • Store construction materials safely and remove debris regularly.
  • Clean slippery workplaces and passageways.
  • Ensure adequate ventilation in tunnels and use mandatory monitoring instruments.

Beedi and cigar, motor transport, dock and plantation work (Rules 33 to 43)

  • Maintain cleanliness, ventilation and effective control of dust and fumes.
  • Implement additional safety measures relevant to the nature of work of the establishment.

Common provisions

  • Adequate supply of clean, wholesome and safe drinking water readily accessible to all employees at all workplaces. (Rule 44)
  • Prevent overcrowding and ensure sufficient space around individual machines. (Rule 45)
  • Emergency lighting with an independent power source where lighting failure may pose a risk to employees. (Rule 46)
  • Sufficient latrine and urinal accommodation at conveniently accessible places, separately for male, female, transgender employees and employees with disabilities. (Rule 47)

Common welfare provisions

FacilityWhere requiredRule
Separate washing facilities, bathing places, locker rooms and changing roomsEvery establishment49 to 51
Sitting arrangements for employees obliged to work standingEvery factory, mine and dock work52
Canteen with dining hall, kitchen and store room, sited away from processing areas and latrines100 or more workers, including contract labour53
First aid boxes with prescribed itemsEvery establishment54
Ambulance room or dispensary with a qualified medical practitioner and nurseFactory, mine and BoCW with more than 500 workers55
Welfare OfficerFactories, mines and plantations with 250 or more workers57
CrècheEvery establishment ordinarily employing more than 50 workers58
Mock drillsQuarterly for all establishments; annually for plantations59
Pre-employment and annual medical examinations, including contract labourMines60
Free temporary accommodation at remote sites; cost borne by principal employer if work is contractedBuilding or other construction work62
Round-the-clock medical facilities, or during working hours as applicable, with prescribed equipment and qualified staff at every operating centre and halting stationMotor transport undertakings63
PCS note. The handbook states the crèche threshold as "more than 50 workers" here (OSH Rule 58) and as "50 or more employees" in paragraph 6.4 (Code on Social Security). Employers at exactly 50 should plan for the crèche obligation.
Chapter 5, The Occupational Safety, Health and Working Conditions Code, 2020 (continued)Compliance Handbook for Employers

5.6Registers, records and returns

Sec 33

  1. Employers must maintain the Register of Employees; Register of Attendance-cum-Muster Roll; and Registers of wages, overtime, deductions, leave with wages and dangerous occurrences, as prescribed by the appropriate Government.
  2. Employers must issue wage slips, electronically or otherwise.
  3. The annual return must be submitted, electronically or otherwise.
  4. A register of accidents and dangerous occurrences must be maintained.

5.7Notice of accidents, dangerous occurrences and diseases

Sec 10, 11, 12

  1. The employer must notify the prescribed authorities of any accident in the establishment that results in death, serious injury preventing work for 48 hours or more, or is of a prescribed nature. (Section 10)
  2. Where any dangerous occurrence takes place, whether or not it causes injury or disability, the employer must notify the prescribed authorities in the prescribed form and within the time specified by the appropriate Government. (Section 11)
  3. Where any worker contracts a disease specified in the Third Schedule (Annexure 4), the employer must notify the prescribed authorities in the prescribed form and within the time specified by the appropriate Government. (Section 12)

5.8Women at night and in dangerous operations

Sec 43, 44, 82

  1. Women are allowed to work in all establishments and in all types of work. (Section 43)
  2. Where women are employed before 6:00 a.m. or after 7:00 p.m., employers must obtain their consent and ensure compliance with the prescribed safety measures, holidays, working hours and other conditions. (Section 43)
  3. The employer must provide adequate safeguards before employing women in establishments or operations considered dangerous or hazardous to their health and safety, as prescribed by the appropriate Government. (Section 44)
  4. The employment of pregnant women in manufacturing processes or operations involving serious risk of bodily injury, poisoning or disease may be prohibited or restricted, as prescribed. (Section 82)
Chapter 5, The Occupational Safety, Health and Working Conditions Code, 2020 (continued)Compliance Handbook for Employers

5.9Contract labour

Sec 45 to 55

  1. These provisions apply to every establishment in which 50 or more contract labour are, or were, employed on any day of the preceding 12 months. (Section 45)
  2. Every contractor employing 50 or more contract labour must obtain a licence. (Section 47)
  3. The licence is valid for five years. (Section 48)
  4. A contractor seeking to supply or engage contract labour, or to carry out contract work, in more than one State or for the whole of India must apply electronically on the Shram Suvidha Portal to the designated authority appointed by the Central Government. (Section 47)
  5. The principal employer is responsible for providing the welfare facilities prescribed under Sections 23 and 24. (Section 53)
  6. The contractor is responsible for paying wages to contract labour within seven days of the wage period. If the contractor fails to pay within that period, or short-pays, the principal employer is liable to pay the contract labour and may recover the amount from the contractor. (Section 55)

5.10Inter-State migrant workers

Sec 59, 61

  1. These provisions apply to every establishment in which 10 or more inter-State migrant workers are, or were, employed on any day of the preceding 12 months. (Section 59)
  2. Employers must pay every inter-State migrant worker a lump-sum journey allowance once a year. (Section 61)

5.11Additional provisions

Sec 18, 136

  1. In addition to their general duties, employers must ensure a safe and healthy workplace: safe plant and systems of work; safety in the use, handling, storage and transport of materials; necessary information, training and supervision; safe workplaces with secure access and exit; and a safe working environment with adequate welfare facilities.
  2. Employers must comply with the occupational safety and health standards notified by the Central Government. (Section 18)
  3. Employers must comply with the regulations relating to mines and dock work notified by the Central Government. (Section 136)
Chapter 6, The Code on Social Security, 2020Compliance Handbook for Employers
Chapter 6

The Code on Social Security, 2020

The Code on Social Security, 2020 subsumes nine labour laws. It covers EPFO, ESIC, gratuity, maternity benefit, employee's compensation, social security and cess for building and other construction workers, social security for unorganised, gig and platform workers, and social security records. The applicability criteria are in the First Schedule, reproduced at Annexure 5.

Laws subsumed: the Employee's Compensation Act, 1923; the Employees' State Insurance Act, 1948; the Employees' Provident Funds and Miscellaneous Provisions Act, 1952; the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959; the Maternity Benefit Act, 1961; the Payment of Gratuity Act, 1972; the Cine-Workers Welfare Fund Act, 1981; the Building and Other Construction Workers' Welfare Cess Act, 1996; and the Unorganised Workers' Social Security Act, 2008.

6.1Employees' Provident Fund

Sec 15, 16

  1. The provisions apply to all establishments employing 20 or more employees. The earlier requirement limiting coverage to scheduled employments under EPF has been removed.
  2. The Central Government may frame three schemes (Section 15):
    • The Employees' Provident Fund Scheme, 2026, under which the provident fund is established for employees or any class of employees.
    • The Employees' Pension Scheme, 2026, for superannuation pension, retiring pension, permanent total disablement pension and the like.
    • The Employees' Deposit Linked Insurance Scheme, 2026, for life insurance benefits to employees.
  3. The employer must contribute 12% of the employee's wages to the Provident Fund scheme. (Section 16)
  4. The employee's contribution must be equal to the employer's contribution. (Section 16)

6.2Employees' State Insurance

First Schedule; Sec 2(33), 31, 32

  1. The provisions apply to every establishment employing 10 or more persons, except seasonal factories. They also apply to establishments engaged in notified hazardous or life-threatening activities, even with a single employee. (First Schedule)
  2. The employer shall, before or on the day of taking any person into employment, register that person by entering the name, Aadhaar number and other details on the specified portal.
  3. The employer must pay both the employer's and employee's contributions for every employee, at 3.25% and 0.75% of wages respectively. (Section 31, Rule 19)
  4. For female employees, family also covers dependent parents, including father-in-law and mother-in-law, whose income from all sources does not exceed ₹14,000 a month or such amount as may be notified. (Section 2(33), Rule 4)
  5. An insured person is entitled to the following benefits (Section 32):
    BenefitWhat it covers
    SicknessPeriodical payments to an insured person in case of sickness.
    MaternityPeriodical payments to an insured woman for confinement, miscarriage, or sickness arising out of pregnancy, confinement, premature birth or miscarriage. An insured woman, and an insured person in respect of his wife, is also paid a medical bonus of ₹15,000 per case towards confinement expenses. (Rule 22(4))
    DisablementPeriodical payments to an insured person disabled by employment injury.
    Dependants'Periodical payments to dependants of an employee who died as a result of employment injury.
    MedicalMedical treatment of the insured person and family where contributions are paid or payable, or where the insured person qualifies for sickness or maternity benefit.
    Funeral expenses₹20,000 to the family member or person who actually incurs the funeral expenditure of a deceased insured person. (Rule 21)
Chapter 6, The Code on Social Security, 2020 (continued)Compliance Handbook for Employers

6.3Gratuity

Sec 53, 55, 56; Rules 31, 33

  1. Gratuity must be paid on termination of employment by superannuation, retirement, resignation, death or disablement due to accident or disease, or any other event notified by the Central Government, after at least five years of continuous service. (Section 53)
  2. A fixed-term employee is entitled to gratuity on termination of the contract period after completing one year of service. (Section 53 read with Rule 33 of the Social Security (Central) Rules, 2026)
  3. Gratuity is payable at 15 days' wages for each completed year of service, subject to the maximum notified by the Central Government. (Section 53)
  4. The employer shall pay gratuity within 30 days from the date it becomes payable. (Section 56)
  5. All employees who have completed one year of service must make a nomination within the time, in the manner and in the form prescribed by the appropriate Government. (Section 55)
  6. On the death of an employee, gratuity is paid to the nominee or, failing a nomination, to the heirs. Where the nominee or heir is a minor, the minor's share is deposited with the competent authority, who invests it for the minor's benefit in a bank prescribed by the appropriate Government. (Rule 31)

6.4Maternity benefit

Chapter VI; Rules 36, 37

  1. A woman employee is eligible if she has worked at least 80 days in the 12 months immediately preceding her expected date of delivery.
  2. An eligible woman is entitled to a maximum of 26 weeks of maternity benefit, or 12 weeks where she has two or more surviving children.
  3. An employer shall not dismiss or discharge a woman who is absent in accordance with law on maternity leave, or vary any of her conditions of service to her disadvantage.
  4. Employers must pay a medical bonus of ₹3,500 to every woman entitled to maternity benefit where no pre-natal confinement and post-natal care is provided free of charge by the employer.
  5. A woman is entitled to six weeks of maternity benefit in case of miscarriage or medical termination of pregnancy, and two weeks in case of tubectomy.
  6. Employers must allow two nursing breaks of 15 minutes each, in addition to regular rest intervals, to every woman who returns to work after delivery, until the child is 15 months old. (Rule 36)
  7. Employers must provide a crèche in every establishment employing 50 or more employees.
  8. An establishment may use a common crèche of the Central Government, State Government, a municipality, a private entity, an NGO, or a group of establishments pooling resources.
  9. If the employer cannot provide a crèche, it may pay a crèche allowance of not less than ₹500 per month per child, or such amount as the Central Government notifies from time to time. (Rule 37)
Chapter 6, The Code on Social Security, 2020 (continued)Compliance Handbook for Employers

6.5Employee's compensation

Sec 74, 76, 81; Rule 57

  1. Every employer must pay compensation if an employee suffers injury or death due to an accident arising out of and in the course of employment. (Section 74)
  2. Amount of compensation (Section 76(1)(a) and (b)):
    Outcome of injuryCompensation, whichever is more
    Death50% of monthly wages × relevant factor, or the amount notified by the Central Government
    Permanent total disablement60% of monthly wages × relevant factor, or the amount notified by the Central Government
  3. An accident while travelling between residence and workplace, either way, is treated as arising out of and in the course of employment. (Section 74)
  4. On an employee's death, or where the dependants are minors, the employer must deposit the compensation with the competent authority. (Section 81)
  5. If compensation is not paid within 30 days, the employer shall pay simple interest at 12% per annum, or any other rate notified by the Central Government, from the date it became payable until payment. (Rule 57)

6.6Unorganised, gig and platform workers

Sec 114; Rule 48(b)

  1. The Code introduces the concept of gig and platform workers for the first time. The Central Government is the appropriate Government for matters relating to gig and platform workers.
  2. An eligible unorganised, gig or platform worker who has completed 16 years of age shall apply for registration on a self-declaration basis, electronically, with Aadhaar and other documents, in the form specified by the Central Government by general or special order. (Rule 48(b))
  3. Aggregators must contribute 1% to 2% of their annual turnover, capped at 5% of the amount paid or payable to gig and platform workers, to the Social Security Fund for their social security and welfare. (Section 114)
Chapter 6, The Code on Social Security, 2020 (continued)Compliance Handbook for Employers

6.7Building or other construction work

Sec 2(6), 100, 103, 106; Rule 41

  1. Building or other construction work does not include work relating to a factory or mine; work employing fewer than ten workers in the preceding twelve months; or construction for an individual's or group's personal residential use where the total cost does not exceed ₹50 lakh (or a higher notified amount) and the number of workers is within the notified limit. (Section 2(6))
  2. Employers must pay a cess of 1% to 2% of the total cost of construction, deposited in the Building and Other Construction Workers' Welfare Fund. (Section 100)
  3. The employer furnishes a self-assessment of cess in the prescribed format. (Rule 41(2)(b))
  4. On any stoppage or reduction of work, the employer shall furnish information in Form XVII to the assessing officer within 60 days. (Rule 41(2)(e))
  5. Cess is paid in advance on self-assessment certified by a chartered engineer, at the time of approval or before commencement of work. (Rule 41(2)(a))
  6. Within 60 days (or any other notified period) after completing each work, the employer must pay the cess due on the self-assessed construction cost, after adjusting advance cess. (Section 103)
  7. On completion, the employer shall submit a return in Form XVIII to the assessing officer within 60 days of each completed project. (Rule 41(2)(f))
  8. Employers must ensure construction workers are registered with the Building Workers' Welfare Board. (Section 106)

6.8Employment exchanges and career centres

Sec 139

  1. The appropriate Government may, by notification, require employers to report vacancies to a specified career centre before filling them.
  2. The appropriate Government may prescribe the manner (electronically or otherwise) and form for reporting vacancies and filing returns. Reporting a vacancy does not oblige the employer to recruit through the career centre.
  3. Vacancies are reported in writing, by official email or digitally, to the career centre in the prescribed form.
  4. Employers shall furnish yearly returns to the concerned Career Centre (Regional) in the prescribed form.
Chapter 7, Summary of action points for employersCompliance Handbook for Employers
Chapter 7

Summary of action points for employers

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Interactive tool: applicability checkerCompliance Handbook for Employers
Interactive tool

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Quick reference: key timelinesCompliance Handbook for Employers
Quick reference

Key timelines and deadlines

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Annexure 1, Key definitions: the Code on Wages, 2019Compliance Handbook for Employers
Annexure 1

Key definitions: the Code on Wages, 2019

Wages

Sec 2(y)

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 employment or of work done in such employment, and includes:

  1. basic pay;
  2. dearness allowance; and
  3. retaining allowance, if any,

but does not include:

  1. any bonus payable under any law for the time being in force, which does not form part of the remuneration payable under the terms of employment;
  2. the value of any house accommodation, or of the supply of light, water, medical attendance or other amenity, or of any service excluded from the computation of wages by a general or special order of the appropriate Government;
  3. any contribution paid by the employer to any pension or provident fund, and the interest accrued thereon;
  4. any conveyance allowance or the value of any travelling concession;
  5. any sum paid to defray special expenses entailed by the nature of employment;
  6. house rent allowance;
  7. remuneration payable under any award or settlement between the parties or order of a court or Tribunal;
  8. any overtime allowance;
  9. any commission payable to the employee;
  10. any gratuity payable on termination of employment;
  11. any retrenchment compensation or other retirement benefit payable, or any ex gratia payment made on termination of employment.
  • 50% rule. If the total of items (a) to (i) exceeds 50% of total remuneration (or another percentage notified by the Central Government), the excess is treated as wages.
  • For equal wages for all genders and for payment of wages, the amounts in clauses (d), (f), (g) and (h) are taken into account in calculating wages.
  • Where remuneration is paid partly in kind, the value so paid, up to 15% of total wages, is treated as wages.

Employee

Sec 2(k)

Any person (other than an apprentice engaged under the Apprentices Act, 1961) employed on wages by an establishment to do any skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment are express or implied. It 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.

Annexure 2, Key definition: the Industrial Relations Code, 2020Compliance Handbook for Employers
Annexure 2

Key definition: the Industrial Relations Code, 2020

Worker

Sec 2(zr)

Any person (except an apprentice as defined under clause (aa) of section 2 of the Apprentices Act, 1961) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment are express or implied. It includes working journalists as defined in section 2(f) of the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955, and sales promotion employees as defined in section 2(d) of the Sales Promotion Employees (Conditions of Service) Act, 1976. For any proceeding in relation to an industrial dispute, it includes a person dismissed, discharged, retrenched or otherwise terminated in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute. It does not include any person:

  1. subject to the Air Force Act, 1950, the Army Act, 1950 or the Navy Act, 1957;
  2. employed in the police service or as an officer or other employee of a prison;
  3. employed mainly in a managerial or administrative capacity; or
  4. employed in a supervisory capacity drawing wages exceeding ₹18,000 per month, or an amount notified by the Central Government from time to time.

For the purposes of Chapter III (trade unions), "worker" means all persons employed in trade or industry, and includes the worker as defined in section 2(m) of the Unorganised Workers' Social Security Act, 2008.

Annexure 3, The Third Schedule, Industrial Relations Code, 2020Compliance Handbook for Employers
Annexure 3

The Third Schedule, Industrial Relations Code, 2020

Conditions of service for change of which notice is to be given

Sec 40, 101(1)

  1. Wages, including the period and mode of payment.
  2. Contribution paid, or payable, by the employer to any provident fund or pension fund or for the benefit of the workers under any law for the time being in force.
  3. Compensatory and other allowances.
  4. Hours of work and rest intervals.
  5. Leave with wages and holidays.
  6. Starting, alteration or discontinuance of shift working otherwise than in accordance with standing orders.
  7. Classification by grades.
  8. Withdrawal of any customary concession or privilege or change in usage.
  9. Introduction of new rules of discipline, or alteration of existing rules, except in so far as they are provided in standing orders.
  10. Rationalisation, standardisation or improvement of plant or technique which is likely to lead to retrenchment of workers.
  11. Any increase or reduction (other than casual) in the number of persons employed or to be employed in any occupation or process or department or shift, not occasioned by circumstances over which the employer has no control.
PCS note. The Ministry's layout splits item 2 across two numbers and so shows 12 items. The Schedule has 11 items, as listed here.
Annexure 4, The Third Schedule, OSH & WC Code, 2020Compliance Handbook for Employers
Annexure 4

The Third Schedule, OSH & WC Code, 2020

List of notifiable diseases

Sec 12(1)

  1. Lead poisoning, including poisoning by any preparation or compound of lead or their sequelae
  2. Lead tetra-ethyl poisoning
  3. Phosphorus poisoning or its sequelae
  4. Mercury poisoning or its sequelae
  5. Manganese poisoning or its sequelae
  6. Arsenic poisoning or its sequelae
  7. Poisoning by nitrous fumes
  8. Carbon bisulphide poisoning
  9. Benzene poisoning, including poisoning by any of its homologues, their nitro or amido derivatives or its sequelae
  10. Chrome ulceration or its sequelae
  11. Anthrax
  12. Silicosis
  13. Poisoning by halogens or halogen derivatives of the hydrocarbons of the aliphatic series
  14. Pathological manifestations due to (a) radium or other radioactive substances; (b) X-rays
  15. Primary epitheliomatous cancer of the skin
  16. Toxic anaemia
  17. Toxic jaundice due to poisonous substances
  18. Oil acne or dermatitis due to mineral oils and compounds containing mineral oil base
  19. Byssinosis
  20. Asbestosis
  21. Occupational or contact dermatitis caused by direct contact with chemicals and paints, of two types: primary irritants and allergic sensitisers
  22. Noise-induced hearing loss (exposure to high noise levels)
  23. Beryllium poisoning
  24. Carbon monoxide poisoning
  25. Coal miners' pneumoconiosis
  26. Phosgene poisoning
  27. Occupational cancer
  28. Isocyanates poisoning
  29. Toxic nephritis
Annexure 5, The First Schedule, Code on Social Security, 2020Compliance Handbook for Employers
Annexure 5

The First Schedule, Code on Social Security, 2020

Applicability

Sec 1(4), 1(8), 152(1)

Ch.HeadingApplicability
IIIEmployees' Provident FundEvery establishment in which twenty or more employees are employed.
IVEmployees' State Insurance CorporationEvery establishment in which ten or more persons are employed, other than a seasonal factory.

Also applies to an establishment carrying on a hazardous or life-threatening occupation notified by the Central Government, even with a single employee.

An employer of a plantation may opt for Chapter IV by giving willingness to the Corporation, where its benefits are better than those the employer provides.

Contributions are payable under section 29 from the date, notified by the Central Government, on which ESIC benefits are provided to the establishment's employees.
VGratuity(a) Every factory, mine, oilfield, plantation, port and railway company; (b) every shop or establishment in which ten or more employees are, or were, employed on any day of the preceding twelve months; and such shops or establishments as the appropriate Government may notify.
VIMaternity Benefit(a) Every factory, mine or plantation, including those belonging to Government; (b) every shop or establishment in which ten or more employees are, or were, employed on any day of the preceding twelve months; and such other shops or establishments as the appropriate Government may notify.
VIIEmployee's CompensationSubject to the Second Schedule, employers and employees to whom Chapter IV does not apply.
VIIISocial security and cess for building and other construction workEvery establishment falling under building and other construction work.
IXSocial security for unorganised workersUnorganised sector, unorganised workers, gig workers and platform workers.
XIIIEmployment information and monitoringCareer centres, vacancies, persons seeking services of career centres, and employers.
About this editionCompliance Handbook for Employers
About this edition

Source, notes and disclaimer

Source. Compliance Handbook for Employers under the Four Labour Codes (as on 25.09.2026), Ministry of Labour & Employment, Government of India, New Delhi. The text has been lightly edited for on-screen reading. Gold PCS notes flag points where the source contains apparent errors or inconsistencies.

Disclaimer. This is a reference document, not legal advice. The Labour Codes, Central and State Rules, and notifications prevail over anything in this handbook. State-specific Rules may differ from the Central Rules summarised here.

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