Rules 63-64 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 63 of the Code on Social Security (Central) Rules, 2026 makes it the employer's job to tell every employee, at the time of employment, about the right to compensation under the Code. Rule 64 creates the operating framework for the Social Security Fund that pays for schemes for unorganised, gig and platform workers.
At the time of employment, every employer must inform the employee of the right to compensation under the Code, in writing and by electronic means, in English, Hindi or the official language of the area of employment that the employee knows (rule 63). Rule 64 provides that the funds received under section 141(1) of the Code and section 115(1) of the OSH Code are credited to separate accounts called the Social Security Fund, administered by the Central Government through a designated agency and audited by the Comptroller and Auditor General of India.
Rule 63: tell every employee at the start
Rule 63 is a single sentence. Every employer shall, at the time of employment of an employee, inform the employee of his right to compensation under the Code, in writing and by electronic means, in English or Hindi or the official language of the area of employment, which is known to the employee.
What this means in practice:
| Element | What the rule says |
|---|---|
| Who | Every employer |
| When | At the time of employment |
| What | The employee's right to compensation under the Code |
| How | In writing and by electronic means |
| Language | English, Hindi, or the official language of the area of employment, known to the employee |
The rule does not prescribe a format, a form number or a penalty for missing it. It does not say what the notice must list beyond the right to compensation. So an onboarding pack with a short clause on compensation is the natural way to comply: a written letter in a language the employee reads, and an email or portal message that carries the same content. Keep a record of delivery. HR teams should add it to the joining checklist alongside the appointment letter. Compensation itself is explained in sections 73 to 75; if you want a review of onboarding documents against the Rules, our labour law compliance team can do it.
Example. A manufacturer in a Hindi-speaking State hires a machine operator who reads Hindi. The onboarding packet includes a Hindi note on his right to compensation, and the same note is emailed to him on the joining date. The HR file keeps both.
Rule 64: the Social Security Fund
Rule 64 is titled "Establishment and administration of Social Security Fund". It says:
- Rule 64(1): The following funds received are credited to separate account(s), called the Social Security Fund, and all expenses towards the scheme notified under sections 109 and 114 for unorganised workers, gig workers or platform workers are met from it: (a) funds under section 141(1) of the Code on Social Security, 2020, and (b) funds under section 115(1) of the Occupational Safety, Health and Working Conditions Code, 2020.
- Rule 64(2): The Central Government identifies the sources for initial funding or replenishing the Fund from time to time.
- Rule 64(3): The Fund is administered by the Central Government through an agency designated by it, in the manner it specifies.
- Rule 64(4): The agency must comply with the directions of the Central Government.
- Rule 64(5): The agency maintains a statement of accounts in the form and manner specified and submits it to the Central Government from time to time.
- Rule 64(6): The accounts are audited by the Comptroller and Auditor General of India.
Employers are not directly asked to do anything under rule 64, but aggregators and other contributors should know where their money goes. Rule 49(1)(c) separately says contributions collected under section 114 from aggregators are kept as part of the Social Security Fund in a separate account for gig and platform workers, as specified in section 141(2).
How the two rules connect with the Code
| Provision | Link |
|---|---|
| Rule 63 | Supports the compensation chapter of the Code; see sections 77 and 78 on payment |
| Rule 64(1) | Sections 109 (unorganised workers) and 114 (gig and platform workers) for schemes; section 141(1) for the Fund |
| Rule 64(6) | Audit by the CAG |
For the Fund provisions in the Code, see sections 141 and 142 and sections 113 and 114. The rules apply where the Central Government is the appropriate Government. State Governments may run their own schemes and rules.
What the rules do not say
- Rule 63 has no stated penalty and no prescribed form.
- Rule 64 gives no contribution rate and no name for the designated agency. Do not assume either.
- The text does not say which agency is designated; that depends on a Central Government designation.
Need help with onboarding and compliance?
A short written notice at joining is easy to forget, and it is the kind of gap an inspection or claim can expose. Our labour law compliance team can review your joining documents and help align them with the Code and the Central Rules for your establishment.
Key takeaways
- Tell every employee about the right to compensation at the time of employment, in writing and electronically (rule 63).
- Use English, Hindi or the official language of the area that the employee knows.
- The Social Security Fund is held in separate accounts and funds schemes for unorganised, gig and platform workers (rule 64(1)).
- The Central Government administers it through a designated agency; the CAG audits it (rule 64(3), (6)).
- State-sphere establishments follow the State's own rules.
Read next
- Sections 141 and 142: Social Security Fund and Aadhaar
- Rule 49: implementation of schemes and refund of contribution
- Rules 60 to 62: transfer of compensation matters
- 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.