The Social Security (Central) Rules, 2026
Amalgamation of 9 Central Social Security Acts
The Social Security (Central) Rules, 2026 provide the statutory implementation rules for the Code on Social Security, 2020. The Code subsumes 9 legacy statutory acts into a unified social security framework:
1. Provident Fund & ESI
Subsumes EPF Act 1952 and ESI Act 1948, establishing universal social security coverage across India.
2. Gratuity & Maternity
Integrates Payment of Gratuity Act 1972 and Maternity Benefit Act 1961, introducing 1-year gratuity for FTEs.
3. Unorganised & Gig Workers
Consolidates Unorganised Workers Act 2008 and BOCW Welfare Cess Act 1996 to cover gig, platform, and construction workers.
Social Security Governance & Advisory Boards
- EPFO & ESIC Boards: Central Board of Trustees (EPFO) and Employees' State Insurance Corporation (ESIC) continue as tripartite statutory bodies to administer provident fund, pension, insurance, and medical benefits.
- National Social Security Board: Constituted under Section 6 of the Code to recommend schemes for unorganised, gig, and platform workers.
- State Social Security Boards: Formed by State Governments to administer state-level welfare and registration schemes.
The 2026 Central Rules streamline provident fund and health insurance administration, extending benefits to small and unorganised sector establishments.
| Scheme / Aspect | Applicability Threshold | Central Rules Mandate |
|---|---|---|
| Employees' Provident Fund (EPF) | 20 or more employees | Mandatory coverage for employees earning up to ₹15,000/month. 12% employee + 12% employer contribution. |
| Employees' State Insurance (ESI) | 10 or more employees | Nationwide expansion. Covers employees earning up to ₹21,000/month (3.25% employer + 0.75% employee). |
| Voluntary ESI Coverage | Less than 10 employees | Establishments employing under 10 workers can voluntarily opt into ESI scheme by mutual agreement. |
| Delayed Payment Penalty | Statutory Due Date (15th of next month) | Simple interest of 12% per annum payable for delayed deposit of statutory EPF/ESI dues. |
Recognized Medical Practitioners under ESI
The 2026 Central Rules expand the panel of authorized ESI medical practitioners to include qualified practitioners registered under Allopathic, AYUSH (Ayurveda, Yoga, Unani, Siddha), and Homoeopathy systems of medicine.
Landmark Reform: 1-Year Gratuity for Fixed-Term Employees (FTE)
The Code on Social Security 2020 and 2026 Central Rules introduce a historic benefit for Fixed-Term Employees:
Regular Employees
Requires minimum 5 years continuous service with the employer to qualify for gratuity payout upon resignation/retirement.
Fixed-Term Employees (FTE)
Eligible for pro-rata gratuity upon completing 1 year (12 months) of continuous service under employment contract.
Statutory Payout Cap
Maximum statutory tax-free gratuity payable is ₹20 Lakhs (subject to Central Government revision).
Gratuity Calculation Formula
Gratuity is calculated at the rate of 15 days' wages for every completed year of service based on the last drawn basic salary and Dearness Allowance:
Gratuity Payout = (Last Drawn Monthly Basic + DA) × (15 / 26) × Completed Years of Service
| Employee Category | Min Service for Gratuity | Calculation Basis | Notice of Payout |
|---|---|---|---|
| Regular Permanent Worker | 5 Years continuous service | 15 days pay per year of service | Within 30 days of application |
| Fixed-Term Contract (FTE) | 1 Year (12 months) contract | Pro-rata 15 days pay per year | Paid upon contract expiry |
| Death / Disablement | No minimum service required | Calculated based on tenure length | Paid immediately to nominee |
26 Weeks Paid Leave
Female employees with up to 2 surviving children get 26 weeks paid leave (8 weeks pre-delivery, 18 weeks post-delivery).
Medical Bonus
Statutory medical bonus of ₹3,500 payable if pre-natal confinement and post-natal care is not provided free by employer.
Work-From-Home Option
After 26 weeks paid leave, employer may allow WFH if nature of work permits, on mutually agreed terms.
Mandatory Crèche Facility (Establishments with 50+ Employees)
Every industrial establishment employing 50 or more employees must provide a crèche facility:
- Distance Threshold: Crèche must be located within establishment premises or within 500 meters distance.
- Daily Visits: Female employees are entitled to 4 visits a day to the crèche (including rest intervals).
- Shared / Common Crèche: Employers may pool resources to operate a shared common crèche facility.
| Maternity Event | Statutory Paid Leave Entitlement | Notice / Documentation |
|---|---|---|
| Up to 2 Surviving Children | 26 Weeks fully paid maternity leave | Notice in Form M with medical cert. |
| 3rd Child onwards | 12 Weeks fully paid maternity leave | Notice in Form M with medical cert. |
| Miscarriage / Medical Termination | 6 Weeks paid leave immediately following date of event | Registered Medical Practitioner Cert. |
| Adoption (Child < 3 months) / Commissioning Mother | 12 Weeks paid leave from date child is handed over | Adoption / Surrogacy legal papers |
Historic Statutory Protection for Gig & Platform Economy
The Code on Social Security 2020 is the first statutory law globally to provide formal social security to Gig Workers and Platform Workers:
Aggregator Contribution
Aggregators (delivery, ride-hailing, e-commerce, logistics) must contribute 1% to 2% of annual turnover into Social Security Fund.
5% Payout Cap
Aggregator contribution is capped at 5% of the total amount paid or payable to gig/platform workers.
Aadhaar Portal Registration
Gig workers must register on Aadhaar-linked central portal (e-Shram) to receive a Universal Security ID.
Social Security Benefits for Gig & Platform Workers
- Life & Disability Cover: Natural death insurance, accidental death cover, and permanent disability support.
- Health & Maternity Benefits: Outpatient medical reimbursement and hospitalization coverage for female gig workers.
- Old Age Protection: Pension / annuity schemes funded jointly by Central Govt, State Govts, and Aggregators.
| Aggregator Category | Statutory Contribution Basis | Social Security Coverage |
|---|---|---|
| Ride-Hailing & Logistics (Cab/Bike) | 1-2% of Annual Turnover (Max 5% payout) | Life/Accident Insurance, Medical Cover |
| Food Delivery & E-Commerce | 1-2% of Annual Turnover (Max 5% payout) | Disability Insurance, Pension Scheme |
| Marketplace & Professional Platforms | 1-2% of Annual Turnover (Max 5% payout) | Health & Maternity Support Fund |
Building & Other Construction Workers (BOCW) Welfare Cess
Every employer executing construction work exceeding ₹10 Lakh cost must pay a statutory welfare cess:
- Cess Rate: 1% to 2% of the total cost of construction incurred by an employer.
- Payment Timeline: Deposited within 30 days of completion of construction or monthly advance billing.
Employees' Compensation for Occupational Injury / Disease
In case of personal injury, occupational disease, or death arising out of and in the course of employment:
| Compensation Event | Statutory Compensation Formula | Minimum / Maximum Limits |
|---|---|---|
| Death due to Injury | 50% of Monthly Wages × Relevant Factor | Min ₹1,20,000 (plus ₹15,000 funeral expenses) |
| Permanent Total Disablement | 60% of Monthly Wages × Relevant Factor | Min ₹1,40,000 |
| Temporary Disablement | Half-monthly payment of 25% of wages | Paid for duration of disablement (up to 5 years) |
Mandatory Job Vacancy Reporting to National Career Service (NCS)
Under Chapter X, all public sector and private sector establishments employing 20+ workers must report job vacancies to designated Career Centres (NCS Portal) at least 15 days before filling vacancies (except jobs paying under ₹11,000/month).
Access and download official Central Gazette Notifications for the Social Security (Central) Rules, 2026 published by the Ministry of Labour & Employment, Government of India: