Quick answer: The Code on Social Security, 2020 is the Labour Code that funds an Indian employee’s safety net: provident fund, pension, state insurance, gratuity, maternity benefit and injury compensation. It absorbed nine laws, including the EPF, ESI, Maternity Benefit and Payment of Gratuity Acts, on 21 November 2025, and it brings gig and platform workers into statute.
- The EPF wage ceiling rose from ₹15,000 to ₹25,000 a month on 17 September 2026.
- At that ceiling the employer’s 12% is ₹3,000, split ₹2,083 to pension and ₹917 to provident fund.
- ESI costs you 3.25% and the employee 0.75%, for wages up to ₹21,000 a month.
- Fixed-term employees earn gratuity after one year, while permanent staff still need five.
What does the social security code 2020 cover?
Five benefit streams, each with its own payer and trigger.
| Scheme | Who pays | Key 2026 number |
|---|---|---|
| Employees’ Provident Fund and EPS | Employer and employee, 12% each | Ceiling ₹25,000 a month |
| Employees’ State Insurance | Employer 3.25%, employee 0.75% | Wages up to ₹21,000 a month |
| Gratuity | Employer | 15 days’ wages a year, capped at ₹20 lakh |
| Maternity benefit | Employer, or ESIC for insured women | 26 weeks |
| Gig and platform levy | Aggregators | 1% to 2% of turnover |
Wages here follow the Code’s own definition. The 50% add-back applies, so allowance-heavy pay raises PF and gratuity.
The old schemes did not survive. The EPF Scheme, 2026 and its pension and insurance companions were notified on 29 June 2026, replacing the 1952, 1995 and 1976 schemes.
What changed for gig workers and new mothers?
Gig workers entered the law for the first time. Under section 114 of the Code, aggregators contribute 1% to 2% of annual turnover, capped at 5% of what they pay gig workers and platform workers.
An aggregator here means a digital intermediary or marketplace. The central rules tie benefits to 90 days with one aggregator, or 120 across several, in the previous financial year.
Maternity rules carried over largely intact. Section 60 gives 26 weeks, no more than 8 of them before delivery, once a woman has worked 80 days in the prior 12 months.
Mothers with two or more surviving children get 12 weeks. So do adoptive mothers, whatever the child’s age, after the Supreme Court’s 2026 ruling in Hamsaanandini Nanduri.
Establishments with 50 or more employees need a crèche. With employee agreement, an allowance of at least ₹500 a month per child, for up to two children, can replace it.
How does an EOR run social security for your India team?
The EOR registers with EPFO and ESIC under its own codes, files the monthly ECR and ESI return by the 15th, accrues gratuity and pays maternity benefit. Budget gratuity at about 4.81% of wages.
Our page on the Maternity Benefit Act covers leave mechanics in more detail. For platform-style work, read our note on EOR for gig workers.
How does Remunance handle social security for your India employees?
Remunance files EPF through the monthly ECR, pays ESIC, accrues gratuity and administers maternity benefit for every person it employs for you. It also runs benefits administration, and our overview of employee benefits in India shows what usually sits beside the statutory stack. For a line-by-line view of what each hire will cost, ask for a contribution breakdown for your team.
What else do people ask about the social security code?
When did the Code on Social Security come into force?
On 21 November 2025. Its central rules followed on 8 May 2026 and the new EPF, EPS and EDLI schemes were notified on 29 June 2026.
Does the Code on Social Security cover gig workers?
Yes. It defines gig and platform workers and funds their welfare through the aggregator levy, with registration on a central portal using Aadhaar.
Is gratuity still five years under the new code?
For permanent employees, yes. Fixed-term employees qualify after one year of service, and a part year above six months counts as a full year.