Sr. No.

Provision in the Code Impact Our Approach Statewise Impact

CODE ON SOCIAL SECURITY
Chapter III - Employees Provident Fund
1 EPFO’s coverage would be applicable on all establishments having 20 workers or
more. At present, it was applicable only on establishments included in the
Schedule to the EPF&MP Act (industry specific application removed).
The central govt. may specify differential rates and period for any class of
employees
Section 16: Funds
(1) The Central Government may , for the purposes of—
Provident Fund Scheme , establish a Provident Fund where the contribution paid
by the employer shall be ten percent. of the wages 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.
Section 17: Contribution in respect of employees and contractors.
•The amount of contribution employers’ as well as the employee's contribution
any charge for meeting the cost of administering the Fund paid or payable by an
employer or through a contractor by the employer
•No contractor can deduct the employer's contribution from the wages payable
to an employee employed by or through him or otherwise to recover such
contribution or charges from such employee.
Chapter IV - Employees State Insurance Corporation
1 The ESI Scheme will apply to establishments with 10 or more employees
2 Also the Option for becoming member of ESIC has prescribed to establishments
with less than 10 workers.
3 Establishments working in hazardous sectors would mandatorily be linked with
ESIC, even if there is only one worker working in it.
4 Section 31: Provisions as to payment of contributions by employer, etc.
•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.
•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.

Section 34: an accident arising in the course of an employee's employment shall

be presumed, in the absence of evidence, to have arisen out of that
employment.
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.
Section 45: Schemes for unorganized workers, gig workers and platform workers
and the members of their familiesframe scheme for providing benefits
admissible under this Chapter by the Corporation.
Chapter V - Gratuity
1 The Fixed Term Employee would be eligible for gratuity even if he renders
service under the contract for a period of one year.
2 Code has fixed different threshold with respect to eligibility for gratuity of
permanent and fixed term employees
3 Not required to pay interest for the delay in payment of gratuity if the delay is
due to the fault of the employee and there is a written permission from the
controlling authority
Chapter VI - Maternity Benefit
1 The crèche shall be provided if 50 or more employees are employed (irrespective
of whether such establishment is covered under ESI or not).
2 Common crèche facility within 500 mtrs. from the workplace
3 Maternity benefits or medical bonus or both can be deprived, if a woman is
dismissed or discharged for any gross misconduct as prescribed by the Central
Govt
4 The provision for ceiling of upper limit of Medical Bonus of Rs. 20,000/- as may
be notified by the Central Govt. is now removed under this Code.

Section 59: Employment of, or work by, women prohibited during certain period.
•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.

Chapter VII - Employees Compensation

1 If death or injury is caused to any worker or a member of his family as a result of
the collapse of a house provided by the employer in a plantation, and the
collapse is not solely and directly attributable to a fault on the part of any
occupant of the house or to a natural calamity
2 The minimum limit of compensation of Rs.1,20,000/- in case of death and
minimum limit of Rs.1,40,000/- in case of Permanent Total Disablement is
removed. So also, the base salary of Rs.8,000/-as monthly wages for the
computation of EC is also removed.
3 Under Employees Compensation Funeral Expenditure – Rs 15000/- to the
Dependents introduced
4 Compensation in case of accidents while commuting from residence to
workplace and vice versa
Chapter VIII - Social Security and Cess in respect of BOCW (BUILDING AND
OTHER CONSTRUCTION WORKERS)
1 The building and construction work shall not include construction work carried
out for residential purpose and if cost of such construction is less than 50 Lakhs
(Currently it is 10 Lakhs).

2 The building and construction work shall not include the construction work
carried out in the factory or mine
3 Section 103: Payment of BOCW Cess by employer in case of building and other
construction work, on the basis of his self-assessment
4 Section 100: This rate of the BOCW Cess for the purposes of social security and
welfare of building workers is set at minimum One percent and max Two Percent
of the cost of construction incurred by an employer.
5 It prescribes Interest payable by the employer in case of delayed payment of the
BOCW Cess and Penalty for non-payment of BOCW Cess within the specified
time
6 Section106: Registration of building workers as beneficiaries
It requires Registration of building workers as beneficiaries
Chapter IX : Social Security for Unorganized Workers, GIG Workers and
Platform Workers
The newer forms of employment created with the changing technology like
“platform worker or gig worker” have been brought into the ambit of social
security under the SS Code.
1 Schemes for gig workers, platform workers, and unorganized workers may be
financed through a combination of contributions from the employer, employee
(or aggregators for gig workers and platform workers), and the appropriate
government.

2 For the purpose of schemes for gig and platform workers, the SS Code specifies a
list of aggregators including ride sharing services and food delivery services

3 Section 113: Registration of every unorganized worker, gig worker or platform

worker on the basis of self-declaration electronically or otherwise, along with
such documents including Aadhaar number
4 Any contribution from an aggregator may be at a rate notified by the
government falling between 1-2% of the annual turnover of the aggregator,
subject to a cap of 5% of the amount paid or payable by an aggregator to the gig
and platform workers
5 Every unorganized worker, gig worker or platform worker has to complete
sixteen years of age or such age as may be prescribed by the Central
Government
Chapter XIII : Employment Information & Monitoring
1 The threshold limit changed to 20 or more (from 25 or more) for the
applicability.

2 SS Code may make it mandatory for all establishments having 20 or more

workers to compulsorily report the vacant position in their establishments on the
online portal
Other Changes
1 For the purposes of counting of employees for the coverage of an
establishment under PF & ESI, the employees, whose wages are
more than the wage ceiling so notified by the Central Government,
shall also be taken into account
2 Fixed term employee shall be eligible for all benefits, under any
law for the time being in force, available to a permanent employee
proportionately according to the period of service rendered by him
3 For fixed term employees hours of work, wages, allowances and
other benefits shall not be less than that of a permanent employee
doing the same work or work of a similar nature
4 In the case of an employee employed on fixed term employment or a deceased
employee, the employer shall pay gratuity on pro rata basis and not on the basis
of continuous service of five years;
5 In relation to an establishment having departments or branches in
more than one State, Central Government would be the
appropriate Government. (There will be an impact under Gratuity,
Maternity Benefit and Employment Exchange chapters)
6 The apprentices engaged under the Apprentices are alone
excluded from the definition of the term employee
7 To provide penalty for different types of violations commensurate
with gravity
8 Aadhaar mandatory for seeding at the time of registration of
member or beneficiary
9 Major change in the definition of ‘wages’ (Employers liability may
go up for the purpose of PF and gratuity and it may get reduced for
the purpose of ESI and Maternity benefit)
10 Provision for compounding of offence is introduced
11 Prior to prosecution, Opportunity to be provided to employer for
corrective action
12 Employees in Supervisory and Managerial Role also entitled for Overtime Wages

13 Every establishment to which this SS Code applies shall be electronically

registered within such time and in such manner as may be prescribed by the
Central Government
14 Establishments whose business activities are in the process of closure, may make
an application for cancellation of registration granted.
15 In the event of the death of a worker or injury to a worker due to an accident at
his workplace, atleast 50% share of the penalty would be given.This amount
would be in addition to Employees Compensation.
16 Centre to introduce re-skilling fund introduced for retrenched employees and
provision for Social Security Fund for unorganised workers.