Mapping the Social Security Code for HR: What Changed and What You Must Know
The Government of India notified the commencement of all four Labour Codes - Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health & Working Conditions Code (2020) - with effect from 21 November 2025.
Below is a structured breakdown of the Code on Social Security, along with the exact laws consolidated under each Code:
I. Codes and the Laws Merged into Them
1. Code on Social Security, 2020 (CSS)
The CSS consolidates the following nine Central labour laws:
- The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
- The Employees’ State Insurance Act, 1948
- The Employees’ Compensation Act, 1923
- 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 Cess Act, 1996
- The Unorganized Workers’ Social Security Act, 2008
All of these now sit under one integrated social security framework.
2. Code on Wages, 2019
Merged four laws:
1. Minimum Wages Act, 1948
2. Payment of Wages Act, 1936
3. Payment of Bonus Act, 1965
4. Equal Remuneration Act, 1976
3. Industrial Relations Code, 2020
Merged three laws:
1. Trade Unions Act, 1926
2. Industrial Employment (Standing Orders) Act, 1946
3. Industrial Disputes Act, 1947
4. Occupational Safety, Health and Working Conditions Code, 2020 (OSH)
Merged 13 laws:
- Factories Act, 1948
- Mines Act, 1952
- Dock Workers Act, 1986
- Building and Other Construction Workers Act, 1996
- Contract Labour (Regulation and Abolition) Act, 1970
- Inter-State Migrant Workmen Act, 1979
- Working Journalists Act, 1955
- Motor Transport Workers Act, 1961
- Sales Promotion Employees Act, 1976
- Beedi and Cigar Workers Act, 1966
- Cine Workers and Cinema Theatre Workers Act, 1981
- Plantation Labour Act, 1951
- Working Journalists and Newspaper Employees Act, 1955
II. Key Technical Highlights of the Social Security Code (CSS)
1. Expanded Applicability
The CSS creates a widened coverage net for:
- Gig workers
- Platform workers
- Unorganised workers
- Fixed-term employees
This requires HR teams to re-evaluate engagement models and extend compliance systems.
2. Gig & Platform Worker Governance
Aggregator companies must contribute 1–2% of annual turnover to a Social Security Fund, capped relative to payouts.
Benefits include:
- Life & disability cover
- Accident insurance
- Health/maternity protection
- Old-age support
3. Re-Defined “Continuous Service” for Gratuity
The definition now includes:
- Sickness
- Accident
- Leave
- Absence due to strike/lockout
- Maternity benefit leave
- Fixed-term employees become eligible for pro-rata gratuity after 1 year.
4. Digitisation & Portability
The Code enables:
- Online registration of all workers
- Aadhaar-linked benefit delivery
- Digital gratuity & ESI processes
This requires HR teams to align payroll systems and employee data architecture.
5. Appointment Letters Mandatory
Under the combined codes, all employees must receive:
- Appointment letters
- Defined terms of employment
- Clarity on wages, benefits, working conditions
6. Inspector-cum-Facilitator Regime
Compliance moves from a punitive inspection model to a facilitation + inspection hybrid.
7. Penalties & Prosecution
Non-compliance may result in:
- Monetary penalties
- Compounding of certain offences
- Prosecution for repeated/serious violations
HR must update risk registers accordingly.
8. Partial Implementation & Pending State Rules
While the Codes are in force centrally, some state rules are not yet notified.
Compliance teams must track state-level publications for OSH and IR Code operationalisation.
Prepardeness Required from HR Professionals
- Revising policies
- Updating employee handbooks
- Aligning payroll with the new wage definition
- Reviewing contractor compliance
- Preparing SOPs for digital social security