Code on Social Security 2020 — Unified social protection for all workers

 

The Code on Social Security 2020: A Complete Guide for Employers & Employees

Understanding the Evolving Landscape of Social Security in India

The Code on Social Security, 2020 marks one of the most significant reforms in India’s labour ecosystem, bringing together multiple welfare laws into a unified framework. Designed to simplify compliance, modernize social protection, and widen coverage for workers across sectors, this code plays an essential role for businesses, employees, gig workers, and self-employed professionals.

As organizations evolve and the workforce becomes increasingly diverse, understanding the Social Security Code is no longer optional—it is a compliance necessity and a step toward creating a healthier, more secure workplace environment.

What Is the Code on Social Security 2020?

The Code on Social Security 2020 consolidates nine major labour laws related to social security, such as EPF, ESI, gratuity, maternity benefits, employee compensation, and more. The objective is to create a streamlined compliance structure and ensure social protection for every worker, including those in unorganized and gig sectors.

The unified code makes it easier for employers to comply and reduces administrative burdens while providing better transparency, improved benefits, and wider coverage for employees.

Key Objectives of the Code

1. Simplification of Compliance 

The code merges multiple laws and eliminates overlapping provisions, creating a single, integrated system that is easier to understand and follow.

2. Universal Social Security 

A major shift is the extension of social security benefits to unorganized workers, gig workers, and platform workers—groups previously outside formal protection.

3. Digital Transformation of Registration 

The code encourages centralized and digital registration to streamline processes like EPF, ESI, gratuity, and maternity claim management.

4. Improved Worker Protection 

Strengthening worker safety nets ensures long-term financial stability and enhances workplace satisfaction.

Who Is Covered Under the Social Security Code?

The code broadly covers:

1.      Organized sector employees

2.      Unorganized workers

3.      Gig and platform workers

4.      Self-employed individuals

5.      Contract labour and migrant workers

Major Components of the Social Security Code

EPF (Employees’ Provident Fund) 

The code strengthens the EPF mechanism by expanding coverage and ensuring secure retirement savings for employees.

ESI (Employees' State Insurance) 

The ESI benefits are extended to unorganized and gig workers through government-backed welfare funds.

Gratuity 

Fixed-term employees become eligible for gratuity without completing the earlier requirement of five continuous years of service.

Maternity Benefit 

Women workers receive enhanced maternity protection, including paid leave and medical bonuses.

Welfare for Gig & Platform Workers 

This landmark provision ensures that delivery partners, freelancers, ride-share drivers, and platform-based workers receive essential social protection.

Employee Compensation 

The code enhances compensation for workplace injuries, ensuring timely relief for workers and their families.

Digital Registration & Compliance Reforms

Employers must now register employees through a unified digital portal, simplifying:

1.      EPF & ESI contributions 

2.      Employee data updates 

3.      Filing returns 

4.      Reducing paperwork and inspections 

Impact on Employers

Employers must adapt to:

-        Simplified returns filing 

-        Maintaining accurate digital records 

-        Contributing to gig and unorganized worker funds 

-        Avoiding penalties for non-compliance 

Benefits for Employees

The code ensures:

1.      Retirement stability 

2.      Medical and disability protections 

3.      Maternity support 

4.      Protection for gig & platform workers 

Final Thoughts

The Code on Social Security, 2020 brings a transformative shift to India’s labour welfare system. It not only simplifies compliance for employers but also strengthens protection for workers across the country, making India’s workforce