Rule 183 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.
Rule 183 is a single sentence. It says the Social Security Fund set up under section 141 of the Code on Social Security, 2020 is deemed to have been set up under section 115 of the OSH Code, along with the other sources of the fund and the manner of administering and spending it for the welfare of unorganised workers.
Rule 183: the Social Security Fund established under section 141 of the Code on Social Security, 2020 (Act 36 of 2020) is deemed set up under section 115 of the OSH Code, including its other sources of funds and the manner of administering and expending it for the welfare of unorganised workers. In practice, penalties and composition amounts under the OSH Code are meant to go into one fund, not a new separate one.
What section 115 of the Code says
Section 115 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) is the whole of Chapter XIII. It provides:
| Sub-section | Content |
|---|---|
| (1) | The appropriate Government establishes a social security fund for the welfare of unorganised workers. Credited to it: the amount received from composition of offences (section 114(4)) and the amount of penalty (section 111(6)) |
| (2) | The fund may also be funded by such other sources as the appropriate Government may prescribe |
| (3) | The fund is administered and expended for the welfare of unorganised workers in the manner the appropriate Government prescribes, including transfer of the amount to any fund established under another law for the welfare of unorganised workers |
| Explanation | "Unorganised worker" has the same meaning as in clause (m) of section 2 of the Unorganised Workers Social Security Act, 2008 |
So the Code itself provides for a fund, tells where penalties and compounding sums go, and leaves the other sources and the administration to the rules. Our sections 115-116 explainer covers the section.
The Central Rules apply where the Central Government is the appropriate Government. Where the State Government is the appropriate Government, the State's own OSH rules apply. Questions about how penalties and funds interact with your matters can be raised with our legal consultation team.
What rule 183 does
Rule 183 uses a deeming device. Instead of setting out a new fund, a new account and new administration provisions, it says the fund already set up under section 141 of the Code on Social Security, 2020 "shall be deemed to have been set up under section 115" of the OSH Code. The deeming extends to:
- the fund itself;
- "other sources of fund", the sources section 115(2) leaves to be prescribed; and
- "the manner of administering and expending the fund for welfare of the unorganised workers", which section 115(3) leaves to be prescribed.
The effect is that the OSH Code's inflows (penalties and compounding sums) and the Social Security Code's fund are treated as one fund for the unorganised workers, and the administration and spending rules of the Social Security Code's fund apply.
What the rule does not say
The text of rule 183 does not:
- state the amount, percentage or time within which penalty or composition sums are paid in;
- name the account, the authority that holds it, or an accounting head;
- list the other sources of the fund;
- describe the schemes or benefits for which money may be spent; or
- say anything about how State funds are handled where the State is the appropriate Government.
The details of administration are those under the Code on Social Security, 2020, which is a separate law. This article does not describe that law's provisions, because the source here is the OSH Code and Rules. For the fund's administration, read the Social Security Code and its rules.
How money reaches the fund under the OSH Code
Other fines, such as court-imposed fines on conviction, are not listed in section 115(1) as credited to the fund. The Code is silent on where they go; they follow the ordinary law. Do not assume they reach the fund.
What it means for employers
For an employer the practical points are modest, because the rule is about the government side of the account. Still:
- Where you pay. When the section 111 officer imposes a penalty, or the compounding officer issues a notice, the order or notice will state the account for deposit. Part I of the compounding notice in Form XXVII includes "Name and details of account for depositing the amount". Follow that account detail, and do not pay to any other account.
- The use of the money. The money goes to welfare of unorganised workers, not to the exchequer's general account, under section 115(1) and (3).
- Receipts. Keep the electronically generated receipt; Part III of Form XXVII asks that a copy be attached.
- Silence on other matters. Rule 183 says nothing about set-off or instalments; do not assume either.
For tax treatment of penalties and compounding sums, see our income-tax guides.
Practical examples
Example 1. A contractor is penalised under section 96 and the penalty is paid as directed in the order. Under section 111(6) it is credited to the fund, which rule 183 treats as the Social Security Fund under the Social Security Code.
Example 2. An employer compounds an offence under rule 182 and pays the stated amount into the account in Part I of Form XXVII. Section 114(4) sends the sum to the fund.
Example 3. A State Government is the appropriate Government for a particular factory. The Central rule does not govern; the State's own rules will address the State fund.
Need help with penalties and funds?
If you are facing a penalty order or considering compounding, it helps to know exactly where and how to pay, and what remains open to challenge. Our advisers can review your order or notice and explain the next steps. Start with our legal consultation service.
Key takeaways
- Rule 183 deems the Social Security Fund under section 141 of the Code on Social Security, 2020 to be set up under section 115 of the OSH Code.
- The deeming covers the other sources of the fund and the manner of administering and spending it for unorganised workers.
- Under the OSH Code, penalties under section 111 and composition sums under section 114 are credited to the fund.
- The rule states no amounts, accounts or time limits; follow the order or notice you receive.
- Court fines are not listed in section 115(1) as credited to the fund.
Read next
- Sections 115-116 of the OSH Code: social security fund and delegation of powers
- Rule 182: manner of compounding of offences
- Rule 184: grievance redressal mechanism for contract labour
- Sections 113-114 of the OSH Code: power of court to make orders and composition of offences
Disclaimer: Based on the Occupational Safety, Health and Working Conditions Code, 2020 (as enacted) and, where noted, the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(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.