Sections 1 and 164 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.
Section 1 of the Code on Social Security, 2020 fixes the name, extent and commencement of the Code and decides which establishments each Chapter reaches. Section 164 repeals nine older social security enactments, including the EPF Act, the ESI Act, the Payment of Gratuity Act and the Maternity Benefit Act, and saves what was done under them. Read together, they tell you when the Code bites and what happened to the old law.
The Code extends to the whole of India and comes into force on the date(s) the Central Government notifies, with different dates allowed for different provisions (s.1(3)). The four Labour Codes were brought into force from 21 November 2025. Section 164(1) repeals nine Acts, but s.164(2) treats what was done under them as done under the corresponding provisions of the Code. The EPF Scheme 1952, the EDLI Scheme 1976, the Employees' Pension Scheme 1995 and the rules and regulations made under the ESI Act stay in force for one year from commencement, to the extent they are not inconsistent with the Code (s.164(2)(b)).
Section 1: what it says
| Sub-section | Rule |
|---|---|
| 1(1) | The Act is called the Code on Social Security, 2020 |
| 1(2) | It extends to the whole of India |
| 1(3) | It comes into force on the date the Central Government appoints by notification in the Official Gazette. Different dates may be appointed for different provisions, and a reference to "commencement of this Code" in a provision means the coming into force of that provision |
| 1(4) | The applicability of the Chapters listed in the First Schedule is as stated in column (3) of that Schedule |
| 1(5) | The Central Provident Fund Commissioner may, by notification, apply Chapter III (EPF) to an establishment where the employer and the majority of employees agree; the employer may later apply to come out, on conditions prescribed by the Central Government |
| 1(6) | The Central Government may, on not less than two months' notice, apply the Code to any establishment employing not less than the number of persons specified in the notification |
| 1(7) | The same opt-in route for Chapter IV (ESI), through the Director General of the Corporation, with the same opt-out |
| 1(8) | An establishment to which a Chapter applies at the first instance continues to be covered even if its headcount later falls below the First Schedule threshold |
If you are working out which Chapters cover your establishment, our ESI and PF registration service can map it.
Commencement
The Code received assent on 28 September 2020, but s.1(3) made its start date a matter of notification. The four Labour Codes, including this one, were brought into force from 21 November 2025. Because s.1(3) allows different dates for different provisions, a particular provision may be notified later; where you depend on the exact start of one provision, check the notification for that provision rather than assuming the Code-level date. Our labour law compliance team tracks these dates when it reviews an employer's records.
Who is covered: the First Schedule thresholds
Section 1(4) points to the First Schedule. Its column (3) reads, in short:
| Chapter | Applies to |
|---|---|
| III, Employees' Provident Fund | Every establishment in which twenty or more employees are employed |
| IV, Employees' State Insurance | Every establishment in which ten or more persons are employed, other than a seasonal factory; also an establishment carrying on a hazardous or life-threatening occupation notified by the Central Government, even with a single employee; a plantation may opt in in the circumstances the Schedule states |
| V, Gratuity | Every factory, mine, oilfield, plantation, port and railway company; and every shop or establishment with ten or more employees employed, or employed on any day of the preceding twelve months, plus shops or establishments the appropriate Government notifies |
| VI, Maternity Benefit | Every factory, mine or plantation (including one belonging to Government); and every shop or establishment with ten or more employees on the same twelve-month test, plus others notified |
| VII, Employee's Compensation | Subject to the Second Schedule, employers and employees to whom Chapter IV does not apply |
| VIII, Building and other construction workers | Every establishment which falls under building and other construction work |
| IX, Unorganised, gig and platform workers | Unorganised sector, unorganised workers, gig workers and platform workers |
| XIII, Employment information | Career centres, vacancies, persons seeking their services and employers |
Section 1(8) is a stickiness rule: once a Chapter applies, dropping below the threshold does not switch it off. We cover the Schedule in our article on the First Schedule.
Section 164: the nine repealed Acts
Section 164(1) repeals:
- The Employee's Compensation Act, 1923
- The Employees' State Insurance Act, 1948
- The Employees' Provident Funds and Miscellaneous Provisions Act, 1952
- The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
- The Maternity Benefit Act, 1961
- The Payment of Gratuity Act, 1972
- The Cine-Workers Welfare Fund Act, 1981
- The Building and Other Construction Workers' Welfare Cess Act, 1996
- The Unorganised Workers' Social Security Act, 2008
The Code's own Chapters take over each subject: EPF in Chapter III, ESI in Chapter IV, gratuity in Chapter V, maternity benefit in Chapter VI, employee's compensation in Chapter VII, building workers in Chapter VIII, unorganised, gig and platform workers in Chapter IX and employment information in Chapter XIII.
What survives: s.164(2) and (3)
| Clause | Effect |
|---|---|
| 164(2)(a) | Anything done or action taken under the repealed Acts, including rules, notifications, schemes, appointments, orders and benefits, is deemed done under the corresponding provisions of the Code and stays in force to the extent it is not contrary to the Code, until repealed under the Code |
| 164(2)(b) | The Employees' Provident Funds Scheme 1952, the Employees' Deposit Linked Insurance Scheme 1976, the Employees' Pension Scheme 1995 and the Tribunal (Procedure) Rules 1997, and the rules, regulations and schemes under the ESI Act, remain in force to the extent not inconsistent with the Code for a period of one year from the date of commencement |
| 164(2)(c) | Any exemption given under a repealed Act continues until its validity expires or it ceases under the Code, or a direction is made for that purpose |
| 164(3) | Section 6 of the General Clauses Act, 1897 applies to the repeal, without prejudice to s.164(2) |
The Code itself does not say what replaces the EPF and pension schemes after the one-year period. It empowers the Government to frame schemes under Chapter III (see sections 15 and 16). Check the current position for the schemes you rely on.
Example. An employer holds an exemption for its private PF trust granted under the old EPF Act. Under s.164(2)(c) the exemption continues until its validity expires or it ceases under the Code. The employer should still look at the exemption conditions in Chapter III, sections 20 to 23 and the Central Rules.
Rules that go with the Code
The Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026) came into force on publication in the Gazette (rule 1(2)). They supersede twelve sets of older rules listed in the preamble, including the Employee's Compensation Rules 1924, the Employees' State Insurance (Central) Rules 1950 and the Payment of Gratuity (Central) Rules 1972. They apply where the Central Government is the appropriate Government; where the State Government is, the State's own rules apply.
Need help moving to the new Code?
If you run PF, ESI, gratuity and maternity compliance across several establishments, the change of law is easier to manage with a map of which Chapter applies where. Our labour law compliance team can help you review coverage and records against the Code. Bring your headcount by establishment for the last twelve months.
Key takeaways
- The Code extends to the whole of India; provisions may come into force on different notified dates (s.1(3)).
- The four Labour Codes were brought into force from 21 November 2025.
- The First Schedule sets the headcount tests: 20 for EPF, 10 for ESI, and 10 for gratuity and maternity benefit in shops and establishments.
- Once a Chapter applies, it keeps applying even if headcount falls (s.1(8)).
- Nine Acts are repealed by s.164(1); things done under them are deemed done under the Code (s.164(2)(a)).
- The EPF, EDLI and pension schemes and ESI rules and regulations continue for one year from commencement to the extent consistent with the Code.
Read next
- Section 2: definitions of organisations, authorities, funds and schemes
- Section 3: registration of establishments
- Rules 1 and 2 of the Central Rules, 2026
- 4 Labour Codes 2020: Wages, IR, OSH and Social Security
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.