When did the Code on Social Security, 2020 come into force?
On 21 November 2025.
On which date did the Lok Sabha pass the Code on Social Security, 2020?
On September 22, 2020.
On which date did the Rajya Sabha pass the Code on Social Security, 2020?
On September 23, 2020.
What is the purpose of the Code on Social Security, 2020?
To amend and consolidate social-security laws and extend benefits to employees and workers.
Which sectors does the Code on Social Security, 2020 cover?
Organised, unorganised, and other sectors.
Which nine enactments does the Code subsume?
The Code subsumes nine enactments including key social security Acts from 1923 to 2008.
What is one objective of the Code regarding laws?
To consolidate laws related to social security.
Which worker categories does the Code cover?
The Code covers self-employed, home, wage, migrant, unorganised-sector, gig, platform, and fixed-term workers.
What does 'wages' under Section 2(88) include?
Monetary remuneration payable under employment terms including basic pay, dearness allowance, and retaining allowance.
Which items are excluded from wages under Section 2(88)?
Bonus, HRA, overtime, commission, and conveyance allowance are excluded.
What happens if excluded components exceed 50% of total remuneration?
The excess is added back to wages.
Up to what percentage is remuneration in kind included in wages?
Remuneration in kind up to 15% is included.
What defines platform work?
Work outside a traditional employer–employee relationship connected via an online platform for payment.
To which establishments do provident-fund provisions apply mandatorily?
Establishments employing 20 or more employees.
Who can extend provident-fund coverage by notification?
The Central Government.
When can an establishment with fewer than 20 employees opt for provident-fund coverage?
If the employer and majority of employees agree.
What is the usual employer contribution percentage to the provident fund?
10% of wages.
To what percentage can the employer contribution be enhanced by notification?
12% of wages.
How much does the employee contribute to the provident fund?
An amount equal to the employer's statutory contribution.
What portion of employer contribution may be allocated to the Pension Fund?
Up to 8.33% of wages.
What portion of wages may be contributed to the Employees' Deposit Linked Insurance Fund?
Up to 1% of wages.
After how many years of continuous service is gratuity generally payable?
After at least five years of continuous service.
On which events is gratuity payable besides superannuation and retirement?
Resignation, death, disablement, expiry of a fixed-term contract, or another notified event.
What is the formula for gratuity for a monthly-rated employee?
Last drawn monthly wages times 15/26 times years of service.
How is gratuity calculated for a fixed-term employee?
Last drawn monthly wages times 15/26 times completed service, proportionally.
Does gratuity calculation for fixed-term employees round service beyond six months to a full year?
No, it does not round service beyond six months up to a full year.
Within how many days must an employer pay gratuity after it becomes due?
Within 30 days after it becomes due.
Must an employer pay gratuity even if the employee has not applied?
Yes, the employer must pay gratuity even without employee application.
What must an employer do besides paying gratuity within 30 days?
Determine gratuity and give written notice to the employee.
To which employees does ESI apply based on monthly earnings?
Employees earning up to Rs.21,000 per month or Rs.25,000 for persons with disabilities.
What is the minimum number of employees in an establishment for ESI to apply?
At least 10 persons.
What percentage of wages does the employer contribute to ESI?
3.25%.
What percentage of wages does the employee contribute to ESI?
0.75%.
Name three types of benefits provided by ESI.
Medical, sickness, and maternity benefits.
What is the minimum contribution period required to receive sickness benefit under ESI?
At least 78 days in a contribution period.
At what rate is the ESI sickness benefit paid?
70% of the standard benefit rate.
What is the maximum duration for receiving ESI sickness benefit?
91 days in two consecutive periods.
To which injuries does employee compensation apply?
Injuries from accidents arising out of and in the course of employment or occupational disease.
Which employees are excluded from employee compensation coverage?
Employees covered by ESI are excluded.
Within how many days must an employer notify the Competent Authority after a serious accident?
Within seven days.
When must an employer notify the Competent Authority regarding an employee's absence?
If absence exceeds 20 days due to an accident.
What is the formula for compensation for death?
.
What is the formula for compensation for permanent total disablement?
.
What may an unjustified delay in compensation require?
Interest and additional damages up to 50% of the compensation.
To which establishments does maternity benefit apply?
Establishments employing women.
What is the minimum work duration to be eligible for maternity benefit?
At least 80 days in the preceding 12 months.
How long is maternity leave for eligible women with fewer than two surviving children?
Up to 26 weeks.
What is the maternity leave duration for women with two or more surviving children?
Limited to 12 weeks.
How long is maternity leave for adoptive and commissioning mothers?
12 weeks from handover.
What is the employment restriction after delivery or pregnancy termination?
No employment during six weeks immediately following the event.
Which establishments must provide a creche?
Those employing 50 or more employees.
Until what age of the child are returning mothers entitled to two nursing breaks daily?
Until the child is 15 months old.
What defines an unorganised worker?
A home-based, self-employed, or wage worker in the unorganised sector or an organised-sector worker without social security.
Who must register to access social-security schemes?
Unorganised, gig, and platform workers aged 16 or older.
How do workers generally register for social-security schemes?
Through self-declaration and prescribed documents including Aadhaar.
What is the required contribution range for aggregators?
Between 1% and 2% of annual turnover.
What is the maximum aggregator contribution relative to payments made to workers?
A ceiling of 5% of payments made to workers.
Name one benefit provided by welfare schemes for unorganised workers.
Life and disability cover.
Name another benefit provided by welfare schemes for unorganised workers.
Health and maternity benefits.
Name a facility provided by welfare schemes for unorganised workers.
Creche facilities.
What is a career centre maintained by the Central Government?
An office, employment exchange, place, or portal providing career services and information.
What must specified employers do before filling notified vacancies?
They must report the vacancies to career centres.
Does reporting vacancies to career centres require employers to recruit through them?
No, reporting does not require recruitment through the career centre.
Which types of vacancies are generally excluded from reporting requirements?
Agriculture except plantations, domestic service, legislative staff, short vacancies, and small establishments.
What is the penalty for failing to pay employees' deducted contributions?
A fine of Rs.1,00,000 and imprisonment for one to three years.
What is the fine for failing to pay a contribution under the Code?
Rs.50,000.
What imprisonment term applies for failing to pay a contribution under the Code?
Two to six months.
What roles does the Inspector-cum-Facilitator perform in compliance administration?
Provides guidance, conducts inspections, allows rectification, and may initiate prosecution.
When are PF and ESI applicability and dues inquiries barred?
After five years.
Within what time frame must PF and ESI inquiries generally be completed?
Within two years, extendable by one year.
What determines full operational clarity of rules notified by Karnataka and Central Government?
Final notification and implementation determine full operational clarity.
Which schemes' notifications are still pending under the new social security laws?
Notifications for EPF, Employees' Pension, and Employees' Deposit Linked Insurance schemes are pending.
What other pending notifications relate to social security besides EPF and pension schemes?
Pending notifications include contribution rates, gratuity ceiling, Social Security Fund, National Social Security Board, and gig-worker schemes.
How long do earlier EPF, ESI, and related schemes continue after the new Code's commencement?
They continue for one year from commencement if not inconsistent with the Code.
Test your knowledge with 27 questions on Code on Social Security 2020.
1. What is the primary legislative purpose of the Code on Social Security, 2020?
2. On what date did the Code on Social Security, 2020 come into force?
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