The Code on Social Security, 2020 unifies nine Indian labour laws into one framework to expand universal social security for organised, unorganised, gig, and platform workers. It covers provident fund, employee state insurance, gratuity, and maternity benefits while enabling digital registration, stronger compliance systems, and dedicated social security funds for worker welfare. To address common questions regarding its provisions, as per the FAQ issued by Ministry of Labour and Employment, the following doubts have been clarified.

What Is the Social Security Code, 2020?

The Code consolidates multiple central labour laws into a single system to:

• Extend social protection across worker categories

• Simplify registration, compliance, and inspections

• Enable digital-first access (including the e-Shram portal)

• Strengthen institutional governance and fund management

It supports formalisation of the workforce, benefit portability, and inclusion of gig and platform workers in India’s welfare architecture.

A. General Framework & Worker Registration

Q1. Are all procedures under the Rules mandatory in digital mode?

Answer: No. Digital processes are prioritised, but physical submission is allowed in specific cases (e.g., gratuity and maternity benefit claims).

Q2. Does registration guarantee automatic benefits?

Answer: No. Registration is only an access point. Benefits depend on:

• Scheme onboarding on relevant portals

• Scheme-specific eligibility conditions
  
  Registration under Social Security Rules does not ensure automatic payment. Workers must meet eligibility criteria of specific schemes that are operational on designated portals such as the e-Shram portal. Registration simply enables access to social security systems.

B. Schemes, Rule-Making & Social Security Funds

Q3. Can the Rules be amended only through Parliament?

Answer: No. As subordinate legislation, Rules can be updated through government notifications.

Q4. Can Social Security Funds merge with general accounts?

Answer: No. Funds must be:

• Maintained as separate accounts

• Audited by Comptroller and Auditor General of India

• Used strictly for worker welfare

C. Maternity Benefit Provisions

Q5. Can claims be rejected for not using prescribed forms?

No. Procedural lapses cannot defeat substantive rights.

Q6. Is certification only by registered medical practitioners valid?

No. Acceptable certification includes:

• ASHAs

• ANMs

• Local authorities

• Municipal or village officials

Q7. Are nursing breaks limited to two fixed intervals?

No. Additional time (including travel time) is allowed.

Q8. Must crèches be within employer premises?

No. Permitted options include:

• Common/shared crèches

• Pooled arrangements

• Crèche allowance where facilities are absent

D. Gratuity Rules

Q9. Can gratuity be claimed only after employment ends?

No. Advance applications are allowed.

Q10. Does delay forfeit claims?

No. Delay alone cannot invalidate claims.

Q11. How are gratuity amounts for minors protected?

Invested in term deposits with specified nationalised banks.

Q12. Can employers reject claims arbitrarily?

No. Mandatory:

• Notices

• Reasoned orders

• Timelines

• Appeal mechanisms

E. Building & Other Construction Workers (BOCW)

Q13. Is BOCW cess payable only after completion?

No. Advance payment based on self-assessment is allowed.

Q14. Can instalments be paid without disclosures?

No. Work progress and cost details are required.

Q15. Is refund of excess cess allowed?

Yes, via time-bound mechanism.

Q16. Who pays the cess?

Responsibility varies among employers, contractors, PSUs, and departments.

Q17. Do migrant workers lose benefits across States?

No. Inter-State portability is enabled with updated records.

F. Gig & Platform Workers

Q18. Are only direct aggregator engagements covered?

No. Coverage includes subsidiaries, LLPs, and third-party models.

Q19. Does failure to update data permanently disqualify workers?

No. It causes temporary ineligibility, reversible upon update.

Gig and platform workers remain eligible under Social Security Rules even if data is not updated temporarily. Ineligibility is not permanent. Benefits can be restored once workers update their information on the designated portal, ensuring continued inclusion in social security schemes.

G. Compliance, Inspection & Enforcement

Q20. Are inspections random?

No. They are risk-based and corrective.

Q21. Are penalties automatic?

No. Process includes:

• Notice

• Opportunity to comply

• Hearing

• Reasoned order

• Compounding option

Q22. Are appeals time-bound?

Yes. Limitation periods and formats are prescribed.

H. Exemptions & Trust Governance

Q23. Are exempt establishments free from oversight?

No. Subject to audits and reporting.

Q24. Are managing trusts unregulated?

No. Mandatory:

• Boards of Trustees

• Equal representation

• Governance norms

I. Administration & Records

Q25. Must records be only at the workplace?

No. Electronic or notified-location storage is permitted.

Q26. Are the Rules inflexible?

No. Limits, rates, and forms can be revised via notifications.