Rules 57-59 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.
Rules 57, 58 and 59 of the Code on Social Security (Central) Rules, 2026 fill in three practical details of the employee's compensation chapter: the interest an employer pays if compensation is not paid within thirty days, the notice and money transfer between competent authorities, and the form in which a compensation claim is presented. They sit in Chapter XIII of the Rules.
If compensation payable 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 the Central Government notifies) from the date it became payable until it is paid (rule 57). An application handled by a competent authority outside the area of the accident needs a Form-XXIX notice first (rule 58). A claim is made in Form-XXVII, with a Form-XXVIII certificate of accuracy (rule 59).
Where these rules fit
The Code deals with employee's compensation in Chapter VII (sections 73 to 99). The Rules explain the procedure. The Central Rules apply where the Central Government is the appropriate Government; where the State Government is, the State's own rules apply. For the liability itself, read sections 73 to 75 and sections 77 and 78. If you manage accident claims for a business, our legal consultation team can help you map who the competent authority is and what to file.
The Rules came into force on publication in the Gazette (rule 1(2)), and the Code is in force from 21 November 2025. The Rules replace the Employee's Compensation Rules, 1924 among twelve sets listed in the preamble, except as to things done before.
Rules at a glance
| Rule | Subject | Key point |
|---|---|---|
| 57 | Interest under section 77(3)(a) | 12% simple interest per annum, or a notified rate, if compensation is unpaid after thirty days |
| 58(1) | Notice before processing | Form-XXIX notice, electronically or otherwise, to the competent authority of the accident area and the State Government |
| 58(2) | Transmitting money | By remittance receipt, e-transfer, net banking or demand draft, as the transmitting authority directs |
| 59(1) | Application | By speed post (with registration), electronically, or presented to the authority or a subordinate; in duplicate in Form-XXVII, signed |
| 59(2) | Certificate | Form-XXVIII signed by the applicant that the facts are accurate to his knowledge and belief |
| 59(3) | Documents | A document on which the application is based must be appended |
Rule 57: interest on late compensation
Rule 57 answers a simple question. Where the compensation payable under section 77(3) is not paid within thirty days, the employer must pay interest from the date on which the compensation becomes payable up to the date on which it is paid. The rate is twelve per cent per annum, simple, or any other rate notified by the Central Government from time to time.
Three points for employers:
- The thirty days are a payment period; interest runs from the date of payability, not from the thirty-first day. That is the wording of the rule.
- Interest is simple, not compounded.
- The rate can change by notification. Check for a notified rate before computing.
Example. An employer owes compensation that became payable on 1 March and pays on 20 April. Since payment was not within thirty days, interest at twelve per cent a year (simple) is worked from 1 March to 20 April, unless a different rate has been notified. Keep the notification check and the day count on file.
Rule 58: Form-XXIX notice and transmitting money
Rule 58 links to section 92. Under rule 58(1), no application under section 92(1) is processed before or by a competent authority other than the one with jurisdiction over the area where the accident took place without giving notice in Form-XXIX, electronically or otherwise, to that competent authority and to the State Government concerned.
Form-XXIX, as printed, recites that a claim has been made by the applicant against a named person, that the applicant claims to be entitled to apply under clause (b) or (c) of section 92(1), and that the authority is satisfied the applicant is entitled to file the claim. It then gives notice that the signing authority proposes to settle the claim as provided under the Code. It carries a date and the signature of the competent authority.
Rule 58(2) deals with money moved from one authority to another under section 92(3): by remittance receipt, e-transfer, net banking or demand draft, as the transmitting authority directs.
For how the competent authority is chosen, see sections 91 and 92.
Rule 59: how to claim
Rule 59 covers applications of the nature referred to in section 93. The applicant may:
- send the application to the competent authority by speed post (with registration);
- send it electronically; or
- present it to the authority or to a subordinate authorised by him.
Unless the authority directs otherwise, it is made in duplicate in Form-XXVII, if any, and signed by the applicant. A Form-XXVIII certificate is appended, signed by the applicant, that the statement of facts is accurate to his knowledge and belief. If the relief is based on a document, the document is appended (rule 59(3)).
The printed Form-XXVII is addressed to the Competent Authority for Employee's Compensation and covers: the injury by accident arising out of and in the course of employment and its cause; the injuries sustained; monthly wages and whether the applicant is over or under fifteen years; the notice of the accident (date served, served as soon as practicable, or not served in due time and why); the relief claimed (half-monthly payment and/or a lump sum); the steps taken to settle by agreement; and the questions in dispute, such as whether the applicant is an employee within the Code, whether the accident arose out of or in the course of employment, whether the amount is due, and whether the opposite party is liable. Our forms article on Forms XXVII to XXX walks through the forms.
The fee for a claim is not stated in rule 59; do not assume one.
Need help with a compensation claim?
If a claim has reached you as an employer, or you are an injured employee's representative, getting the forms, notice and dates in order early avoids interest and procedural objections. Our legal consultation team can review the papers and tell you which authority and which State or Central Rules apply.
Key takeaways
- Unpaid compensation under section 77(3) attracts simple interest at 12% a year, or a notified rate, from when it became payable (rule 57).
- Form-XXIX notice is needed before an application is processed by an authority outside the accident area (rule 58(1)).
- Money between authorities moves by remittance receipt, e-transfer, net banking or demand draft (rule 58(2)).
- Claims go in duplicate in Form-XXVII with a Form-XXVIII certificate and any supporting document (rule 59).
- These are Central Rules; State-sphere cases follow State rules.
Read next
- Sections 77 and 78: payment of compensation and monthly wages
- Sections 93 to 95: form of application, deposits and powers
- Rules 60 to 62: transfer of matters and records
- Workmen compensation vs ESI: which applies
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.