First Schedule 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.
The First Schedule is the applicability table of the Code. Under section 1(4), each Chapter listed in it applies to the establishments and persons named against it in column (3). It tells an employer, in one place, whether provident fund, ESI, gratuity, maternity benefit, compensation, building worker cess or unorganised worker provisions apply.
Chapter III (provident fund): every establishment with twenty or more employees. Chapter IV (ESI): every establishment with ten or more persons other than a seasonal factory, plus hazardous or life-threatening occupations notified by the Centre, even with a single employee. Chapters V and VI (gratuity and maternity benefit): factories, mines, oilfields, plantations, ports and railway companies, and shops or establishments with ten or more employees on any day of the preceding twelve months. Chapter VII applies where Chapter IV does not; Chapter VIII to building and construction work; Chapter IX to unorganised, gig and platform workers; Chapter XIII to career centres, vacancies and employers.
Why it matters
Whether a chapter applies to your business depends on this table, read with section 1(4) to (8). Registration under section 3 and the related service lines follow from it. If you are close to a threshold, see the rule in s.1(8): once a chapter applies at the first instance, it keeps applying even if the headcount later falls below the threshold. Our labour law compliance service can help you check your position and register where the Code requires. For registration itself, see section 3.
The Schedule at a glance
| Chapter | Subject | Applies to (column 3) |
|---|---|---|
| III | Employees' Provident Fund | Every establishment in which twenty or more employees are employed |
| IV | Employees' State Insurance Corporation | Every establishment in which ten or more persons are employed, other than a seasonal factory (with provisos below) |
| V | Gratuity | (a) every factory, mine, oilfield, plantation, port and railway company; (b) every shop or establishment in which ten or more employees are or were employed on any day of the preceding twelve months, and such shops or establishments as the appropriate Government notifies |
| VI | Maternity Benefit | (a) every establishment that is a factory, mine or plantation, including one belonging to Government; (b) every shop or establishment with ten or more employees on any day of the preceding twelve months, and other shops or establishments notified by the appropriate Government |
| VII | Employee's Compensation | Subject to the Second Schedule, to employers and employees to whom Chapter IV does not apply |
| VIII | Social Security and Cess for Building and Other Construction Workers | Every establishment that falls under building and other construction work |
| IX | Social Security for Unorganised Workers | Unorganised sector, unorganised workers, gig workers and platform workers |
| XIII | Employment Information and Monitoring | Career centres, vacancies, persons seeking career centre services and employers |
Chapters I, II, X, XI, XII and XIV, which carry definitions, organisations, accounts, inspection, offences and miscellaneous rules, are not in the table; section 1(4) says the table is "without prejudice to the applicability of the other provisions of this Code".
The three provisos to Chapter IV
- Hazardous or life-threatening occupations. Chapter IV also applies to an establishment carrying on such an occupation, as notified by the Central Government, in which even a single employee is employed.
- Plantations. An employer of a plantation may opt for Chapter IV by giving willingness to the Corporation, where the benefits under that Chapter are better than what the employer provides.
- Date of contributions. Contributions under section 29 are payable from the date on which benefits under Chapter IV are provided by the Corporation to the establishment's employees, and that date is notified by the Central Government.
Related rules on applicability in section 1
The First Schedule is read with these parts of section 1:
| Provision | Effect |
|---|---|
| s.1(4) | The Schedule's column (3) decides applicability of the listed Chapters |
| s.1(5) | The Central Provident Fund Commissioner may apply Chapter III to an establishment where the employer and a majority of employees agree; the employer may later apply to come out on the same basis |
| s.1(6) | The Central Government may, after at least two months' notice, apply the Code to establishments with not less than a notified number of persons |
| s.1(7) | The Director General of the Corporation may apply Chapter IV by agreement of employer and majority of employees; the employer may later apply to come out |
| s.1(8) | An establishment to which a Chapter applies at the first instance continues to be covered even if employees later fall below the First Schedule threshold |
Rules 3 and 5 of the Central Rules, 2026 deal with applicability and registration; see section 3 and the related rule articles in this series. Where the State Government is the appropriate Government, the State's own rules apply.
Who can amend the Schedule
Under s.152(1), the Central Government may amend the First Schedule by notification, by addition or deletion, if satisfied it is necessary or expedient. The thresholds above are therefore as enacted; check for later notifications. See sections 149 to 152.
A worked example
A trading company has 14 employees and no factory. On the face of the Schedule, Chapter III (PF) does not apply to it, since it has fewer than twenty employees; Chapter IV (ESI) applies, because it has ten or more persons and is not a seasonal factory; and Chapters V and VI apply, as it is a shop or establishment with ten or more employees. If it later grows to 22 employees, Chapter III begins to apply, and if it later shrinks to 8, the Chapters that already applied continue under s.1(8). (Illustrative; the Schedule is read with any notifications in force.)
Need help checking which chapters apply?
Headcount, type of establishment and notified categories all decide applicability. Our labour law compliance team can help you test your establishment against the First Schedule, register where required and keep the records the Code expects.
Key takeaways
- PF: 20 or more employees. ESI: 10 or more persons (not a seasonal factory), or one employee in notified hazardous occupations.
- Gratuity and maternity benefit: factories, mines, plantations (and more for gratuity), and shops or establishments with 10 or more employees in the preceding twelve months.
- Compensation applies where ESI does not.
- Building and construction, unorganised/gig/platform workers and career centres have their own chapters.
- Once a chapter applies, it continues even if headcount falls (s.1(8)).
- The Centre can amend the Schedule by notification (s.152(1)).
Read next
- Section 3: Registration of establishments
- Second Schedule to the Code
- Applicability of the EPF Act: the 20-employee threshold
- Applicability of ESI: the 21,000 wage limit
Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.