Loading page
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
The Code on Social Security brings provident fund, state insurance, gratuity, maternity benefit and several other laws together, and extends social security language to gig and platform workers.
Check before you rely on thisCheck the implementation status of the Code on Social Security, the rules and schemes notified under it, coverage thresholds per chapter, current EPF and ESI rates and wage limits, gratuity provisions for fixed-term employees, and any gig worker contribution requirements.
01
The Code on Social Security 2020 consolidates nine central laws, including the Employees' Provident Funds and Miscellaneous Provisions Act 1952, the Employees' State Insurance Act 1948, the Payment of Gratuity Act 1972, the Maternity Benefit Act 1961 and the Employees' Compensation Act 1923.
It keeps the institutions employers already deal with, such as the EPFO and ESIC, and provides for social security schemes for unorganised, gig and platform workers.
02
Each chapter has its own coverage: provident fund, state insurance, gratuity and maternity benefit each apply to establishments and employees meeting conditions set in the Code and its notifications. Coverage thresholds and wage limits come from the Code, its schedules and government notifications, and should be checked for each chapter.
03
04
| Term | What it means |
|---|---|
| Provident fund | Retirement savings with employee and employer contributions, administered by the EPFO |
| Employees' State Insurance | Medical and cash benefits funded by contributions, administered by ESIC |
| Gratuity | A lump sum on leaving after qualifying service |
| Gig and platform workers | Workers outside a traditional employment relationship, for whom the Code provides for schemes |
| Fixed-term employee | An employee on a fixed-term contract; the Code addresses gratuity for such employees |
05
This site's calculators use the rates under the existing schemes: EPF 12% employee and 12% employer on PF wages, with the ₹15,000 wage ceiling for the pension share; ESI 0.75% employee and 3.25% employer for employees with wages up to ₹21,000 a month; gratuity of 15 days' wages per completed year after five years' service, up to ₹20,00,000. These may be revised by notification under the Code.
06
The four labour codes, passed by Parliament in 2019 and 2020, came into force on 21 November 2025. Final central rules under all four codes were notified on 8 May 2026, and each state frames its own rules, some of which are still in draft. During the transition, the relevant provisions of the earlier Acts and their rules continue to apply, so check which rules govern your establishment in each state.
Watch for itGratuity for fixed-term employees, the wage definition and contribution bases are the areas most likely to change payroll calculations. Check each before relying on old practice.
It consolidates the Acts, but the schemes and the bodies that run them continue. Contribution rates and wage limits are set by the Code and notifications under it.
Yes. Under the Code, in force since 21 November 2025, fixed-term employees qualify for gratuity pro rata after one year of service, instead of the five-year rule in the 1972 Act. The five-year rule still applies to other employees.
The Code provides for schemes for gig and platform workers funded in part by aggregators. Whether and how this affects your organisation depends on the notified schemes.
14-day free trial · Full access to all 12 modules · Zero implementation fee · Cancel anytime