Andhra Pradesh explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Two chapters of the Code on Social Security (Andhra Pradesh) Rules, 2026 matter most after an accident or a claim: Chapter III on the Employees' State Insurance Society and Insurance Court, and Chapter X on employee's compensation. Chapter X gives the employer a duty to inform each employee of the right to compensation, interest if payment is late, a funeral deposit amount, and the forms and venue for claims.
If a claim is already in motion, you may want our legal dispute resolution team on call.
The rules are the Code on Social Security (Andhra Pradesh) Rules, 2026, as notified by G.O.Rt.No.126 dated 7 July 2026. If compensation under section 77(3) is not paid within thirty days, the employer pays simple interest at twelve per cent per annum or any other rate notified by the Central Government (rule 34). The funeral expenses amount to be deposited with the competent authority is Rupees Twenty thousand or the modified amount notified by the State Government (rule 43). Every employer must tell each employee in writing and by electronic means of the right to compensation at the time of employment (rule 39).
Notification and commencement
The rules are the Code on Social Security (Andhra Pradesh) Rules, 2026, as notified by G.O.Rt.No.126 dated 7 July 2026. Later amendments and State notifications under these rules should be checked in the State Gazette. Rule 1(2) says they come into force on the date of their publication in the Official Gazette; the four Labour Codes were brought into force from 21 November 2025. Registration is explained in our first article on these rules.
The ESI chapter: what the State makes (rules 13 to 16)
The Central rules on the Insurance Court and the Fund are in rules 29 and 30 of the Central Rules. Chapter III of the Andhra Pradesh rules is mainly structural:
- The Society (rule 13). The State Government may establish an Employees State Insurance Society as a managerial and health care body under section 40(5). It has a Governing Body (the Chief Secretary as Chairperson), an Executive Committee, a Chief Executive Officer and a Secretariat. It is registered under the State specific Societies Registration Act and Public Trust Act. The Governing Body meets at least twice a year and the Executive Committee at least once every three months. The Society submits its budget by 10 December each year, prepares its financial statement for 31 March by 31 May, and submits the annual report and accounts to the Corporation within six months of the close of the financial year. Non-official members serve two years, not more than two terms.
- Capitalised value (rule 14). The capitalised value of permanent disablement and dependants' benefit is the daily rate of benefit multiplied by the factor based on the age of the insured person in the regulations under section 157.
- Other beneficiaries (rule 15). Terms follow what the Central Government notifies, and user charges are as the Corporation specifies with the prior approval of the Central Government.
- Insurance Court (rule 16). Proceedings commence on application by the Corporation, the aggrieved person or the employer, in the Court for the local area where the insured person was working when the question arose. The Court may transfer a matter to another Court in the State, and the State Government may transfer to a Court in another State with that State's consent. The State establishes the Courts by notification for designated local areas; the judges need the qualifications of Labour Court judges.
These rules concern the State and the Corporation; an employer's contribution and return obligations are in the Code and Central rules.
Employee's compensation (Chapter X, rules 34 to 48)
The Central rules are rules 57 to 59. The Andhra Pradesh text provides the following.
- Interest on late compensation (rule 34). If compensation payable under section 77(3) is not paid within thirty days, the employer pays, from the date it becomes payable to the date of payment, "simple interest at the rate of twelve per cent. per annum or any other rate notified by the Central Government from time to time".
- Money moving between authorities (rules 35 and 38(2)). Money transmitted from one competent authority to another goes by remittance receipt, e-transfer, net banking or demand draft, as the sending authority directs.
- Application for claim or settlement (rule 36). The applicant sends the application to the competent authority by registered post or electronically, or presents it in person or to an authorised subordinate. It is made in duplicate in Form-XVI, if any, and signed by the applicant, with a certificate in Form-XVI that the facts stated are accurate as far as the signatory knows and believes. A document on which the application is based is appended.
- Venue (rules 37 and 47). An application is processed by the competent authority for the area where the accident took place, where the employee (or the dependants) ordinarily reside, or where the employer has its registered office. If it is heard elsewhere, notice goes in Form-XVIII to the competent authority having jurisdiction and the State Government concerned.
- Records and money (rules 38 and 47(2)). The authority hearing the case may call for a detailed report, including transfer of records or money, in Form-XIX, and the other authority must comply. Further enquiry in the accident area may be required for framing issues or determining the amount.
- Notice to the employee (rule 39). At the time of employment every employer informs the employee of the right to compensation under the Code, "in writing and by electronic means, in English or Hindi or in the official language of the area of employment, which is known to the employee".
- Matters left to notification (rules 40 to 42, 44 to 46). The Notice Book details, the manner of recording the memorandum in a register, the experience and qualifications of a competent authority, the frequency of medical examination and the form of the employer's statement under section 88(1) are "as may be notified by the State Government". The rules print no figure for them. For review without a medical practitioner's certificate under section 79(1), the rules name a medical officer not below the rank of an Assistant Civil Surgeon.
- Funeral expenses (rule 43). The amount to be deposited by the employer with the competent authority towards the employee's funeral is "Rupees Twenty thousand or such modified amount as may be notified by the State Government from time to time".
- Oath (rule 48). Every statement recorded under section 97 is on oath under the Oaths Act, 1969.
Forms for compensation are described in Forms XXVII to XXX of the Central Rules. Employers in Andhra Pradesh use the State Forms attached to the State rules.
At a glance
| Subject | Rule | As printed |
|---|---|---|
| Interest on late compensation | 34 | Simple interest, twelve per cent per annum, if unpaid within thirty days (or Central rate) |
| Claim application | 36 | Duplicate, Form-XVI, with certificate |
| Notice for another venue | 37, 47 | Form-XVIII |
| Report and transfer of records | 38, 47(2) | Form-XIX |
| Information to employee | 39 | In writing and electronically at employment |
| Funeral amount | 43 | Rupees Twenty thousand, or notified modification |
| Oath | 48 | Under the Oaths Act, 1969 |
A worked example
Guntur Chilli Exports, an invented employer, has a worker injured in an accident at its Guntur yard. The company had given each worker a written and electronic note of the compensation right at joining. The compensation falls due; the company misses the thirty-day window and pays with simple interest at twelve per cent per annum from the due date to the payment date. In a death case at another site, it deposits the funeral amount of Rupees Twenty thousand, or the figure the State has notified by then, with the competent authority.
Common lapses
- Not giving the employee written and electronic notice of the right to compensation at joining.
- Paying compensation after thirty days without the interest.
- Depositing a funeral amount without checking whether the State has modified it.
- Filing in one area when the rule gives a choice of three venues, without notice in Form-XVIII.
Need help with a compensation claim?
Interest, deposits and venue rules each have a precise trigger. Our legal dispute resolution team can help you handle a claim from notice to order.
Key takeaways
- Late compensation: simple interest at twelve per cent per annum after thirty days, or the Central rate.
- Funeral deposit: Rupees Twenty thousand unless the State notifies another amount.
- Written and electronic information to each employee at the time of employment.
- Forms XVI, XVIII and XIX govern claim, notice and records.
Read next
- Code on Social Security (Andhra Pradesh) Rules, 2026: notification, registration and Unorganised Workers Board
- Code on Social Security (Andhra Pradesh) Rules, 2026: gratuity nomination, application and appeal
- Rules 57 to 59 of the Social Security Central Rules, 2026: interest, notice and claim for compensation
Disclaimer: Based on the State or Union territory rules named above, as notified under the Labour Codes and consulted on 4 October 2026. Later amendments, State notifications, fees and forms should be checked in the State Gazette and on the State labour department website. This article is general information, not legal advice; check the official text before acting.