pri Draft Code on Social Security (Central) Rules, 2020 Draft Code on Social Security (Central) Rules, 2020

Ministry of Labour & Employment

Union Labour Ministry Notifies Draft Rules under the Code on Social Security 2020

Posted On: 15 NOV 2020

Union Ministry of Labour and Employment has notified the draft rules under the Code on Social Security, 2020 on 13.11.2020 inviting objections and suggestions, if any, from the stakeholders. Such objections and suggestions are required to be submitted within a period of 45 days from the date of notification of the draft rules.

The draft rules provide for operationalization of provisions in the Code on Social Security, 2020 relating to Employees’ Provident Fund, Employees’ State Insurance Corporation, Gratuity, Maternity Benefit, Social Security and Cess in respect of Building and Other Construction Workers, Social Security for Unorganised Workers, Gig Workers and Platform Workers.

The draft rules also provide for Aadhaar based registration including self-registration by unorganised workers, gig workers and platform workers on the portal of the Central Government. Ministry of Labour and Employment has already initiated action for development of such portal. For availing any benefit under any of the social security schemes framed under the Code, an unorganised worker or a gig worker or platform worker shall be required to be registered on the portal with details as may be specified in the scheme.

The rules further provide for Aadhaar based registration of Building and Other Construction Workers on the specified portal of the Central Government and the State Government or the State Welfare Board. Where a building worker migrates from one State to another he shall be entitled to get benefits in the State where he is currently working and it shall be the responsibility of the Building Workers Welfare Board of that State to provide benefits to such a worker.

Provision has also been made in the rules regarding gratuity to an employee who is on fixed term employment.

The rules also provide for single electronic registration of an establishment including cancellation of the registration in case of closure of business activities.

Provision has also been made regarding manner and conditions for exiting of an establishment from EPFO and ESIC coverage.

The procedure for self-assessment and payment of Cess in respect of building and other construction workers has been elaborated in the rules. For the purpose of self- assessment, the employer shall calculate the cost of construction as per the rates specified by the State Public Works Department or Central Public Works Department or on the basis of return or documents submitted to the Real Estate Regulatory Authority.

The rate of Interest for delayed payment of such cess has been reduced from 2 per cent every month or part of a month to 1 per cent. Under the existing rules, the Assessing Officer has the power to direct that no material or machinery can be removed or disturbed from the construction site. Such power for indefinitely stopping of construction work has been withdrawn in the draft rules. Further, under the draft rules, the assessing officer can visit the construction site only with the prior approval of the Secretary of the Building and Other Construction Workers Board.

The rules have also provided for the manner of payment of contribution by the aggregators through self-assessment.


New Delhi, the 13th November, 2020

G.S.R. 713 (E).— The following draft rules, which the Central Government proposes to make in exercise of the powers conferred by sections 154, 155 and 158 of the Code on Social Security, 2020 (36 of 2020) read with section 24 of the General Clauses Act, 1897 (10 of 1897) and in supersession of the –

(i) Employees’ State Insurance (Central) Rules, 1950;

(ii) Tribunal (Procedure) Rules, 1997;

(iii) Employees’ Provident Funds Appellate Tribunal (Conditions of Service) Rules, 1997;

(iv) Employment Exchanges (Compulsory Notification of Vacancies) Rules, 1960;

(v) Maternity Benefit (Mines and Circus) Rules, 1963;

(vi) Payment of Gratuity (Central) Rules, 1972;

(vii) Cine-Workers Welfare Fund Rules, 1984;

(viii) Building and Other Constructions Workers’ Welfare Cess Rules, 1998; and

(ix) Unorganised Workers’ Social Security Rules, 2009;

made by the Central Government in exercise of the powers conferred by the Employees’ State Insurance Act, 1948 (34 of 1948), the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 ( 19 of 1952), the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959( 31 of 1959), the Maternity Benefit Act, 1961 (53 of 1961), the Payment of Gratuity Act, 1972 (39 of 1972), the Cine-Workers Welfare Fund Act, 1981 (33 of 1981), the Building and Other Construction Workers’ Welfare Cess Act, 1996(28 of 1996) and the Unorganised Workers’ Social Security Act, 2008(33 of 2008), as the case may be, which are repealed by section 164 of the said Code on Social Security, except as respects things done or omitted to be done before such supersession, are hereby notified, as required by section 158, for information of all persons likely to be affected thereby and the notice is hereby given that the said draft notification will be taken into consideration after the expiry of a period of forty-five days from the date on which the copies of the Official Gazette in which this notification is published are made available to the public;

Objections and suggestions, if any, may be addressed to Shri Rahul Bhagat, Director, Ministry of Labour and Employment, Room No.302, Shram Shakti Bhawan, Rafi Marg, New Delhi-110001 or by e-mail – The objections and suggestions should be sent in a proforma containing column (1) specifying the name and address of the person/organization and column (2) specifying the chapter and rule or sub-rule which is proposed to be modified and column (3) specifying the revised rule or sub-rule proposed to be substituted and column (4) reasons therefor;

Objections and suggestions, which may be received from any person with respect to the said draft notification before expiry of the period specified above, will be considered by the Central Government.

Draft Rules

1. Short title, extent and commencement.– (1) These rules may be called the Code on Social Security (Central) Rules, 2020.

(2)They extend to the whole of India.

(3) They shall come into force after the date of their final publication in the Official Gazette, on the date of the commencement of the Code on Social Security, 2020 (36 of 2020).

Download Full Text of Draft Code on Social Security (Central) Rules, 2020

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