Sections 10 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.
Sections 10 to 12 of the Code on Social Security, 2020 say who runs the Central Board and the Corporation day to day, when the Government can supersede a Social Security Organisation and what happens next, and how State Boards, Regional Boards and local committees fit in.
The Central Provident Fund Commissioner and the Director General are the whole-time executive heads of the Central Board and the Corporation and cannot take up unconnected work without the Central Government's prior approval (s.10). The appropriate Government may supersede a Social Security Organisation that is unable to perform its functions, has persistently delayed them, or has exceeded or abused its powers, but only after show cause; a full report must go to Parliament or the State Legislature within three months (s.11). The Central Government may constitute State Boards of trustees, and the Corporation may appoint Regional Boards and local committees (s.12).
Section 10: executive heads
The CPF Commissioner and the Director General are the whole-time officers of the Central Board and the Corporation respectively. Neither may undertake any work unconnected with his office without the prior approval of the Central Government. For the appointment of officers of the Central Board, see sections 13 and 14. For questions on how these bodies affect your own filings, our legal consultation team can help.
Section 11: supersession
Who can supersede whom: s.11(1)
| Organisation | Superseded by |
|---|---|
| Central Board, Corporation, National Social Security Board | The Central Government |
| State Unorganised Workers' Board, Building Workers' Welfare Board | The State Government |
The Government may supersede the organisation, or any of its Committees, by notification, and reconstitute it in the prescribed manner, if of the opinion that it:
- is unable to perform its functions; or
- has persistently made delay in discharging its functions; or
- has exceeded or abused its powers or jurisdiction.
Proviso: before issuing the notification on any of these grounds, the Government must give the organisation or committee an opportunity to show cause why it should not be superseded, and must consider the explanations and objections and take appropriate action.
After supersession: s.11(2) and (3)
| Sub-section | Consequence |
|---|---|
| 11(2) | Until the organisation is reconstituted, the Central or State Government makes alternate arrangements for administering the relevant provisions of the Code, as the Central Government prescribes |
| 11(3) | The Government must lay a full report of the action and the circumstances before each House of Parliament or the State Legislature at the earliest, and in any case not later than three months from the date of the supersession notification |
If you want to understand how supersession affects ongoing EPF or ESI compliance in practice, our legal consultation team can advise. The short answer from s.11(2) is that the Code itself keeps administration running through alternate arrangements; your obligations as an employer do not lapse.
Rule 12 of the Central Rules, 2026
Rule 12 (reconstitution of the Corporation, Central Board, National Social Security Board, State Unorganised Workers' Board, Building Workers' Welfare Board or any of the Committees) says that when one of these bodies has been superseded under s.11, the Central Government or the State Government, as the case may be, shall:
- (a) appoint, or cause to be appointed or elected, new trustees or members in accordance with s.4, s.5, s.6 (read with the proviso to s.114(6)) or s.7, as the case may be; and
- (b) in its discretion, make arrangements for such period as it thinks fit to exercise the powers and perform the functions of the body.
The Central Rules, 2026 (G.S.R. 344(E), 8 May 2026) apply where the Central Government is the appropriate Government. See rules 11 and 12. For State boards, the State Government's rules apply.
Section 12: State Boards, Regional Boards and local committees
| Sub-section | Provision |
|---|---|
| 12(1)(i) | The Central Government may, by notification, after consultation with the Government of any State, constitute for that State a Board of Trustees (a State Board) that exercises powers and performs functions the Central Government assigns by notification |
| 12(1)(ii) | The Central Government may specify the manner of constitution of a State Board, the terms and conditions of appointment of members and the procedure of meetings and other proceedings |
| 12(2) | The Corporation may, by order, appoint Regional Boards and local committees in such areas and manner, to perform functions and exercise powers as specified in the regulations |
Section 4(5) lets a State Board constituted under s.12 delegate powers and functions to its Chairperson or officers for efficient administration of the schemes under s.15(1); see sections 4 and 5. The State Board in s.12 is a Board of Trustees constituted by the Central Government (s.4(5) ties it to the administration of the s.15(1) schemes); it should not be confused with the State Unorganised Workers' Board (s.6) or the Building Workers' Welfare Board (s.7), which the State Government constitutes.
Three different "State boards"
| Name | Constituted under | By whom |
|---|---|---|
| State Board (Board of Trustees) | s.12(1) | Central Government, after consulting the State |
| State Unorganised Workers' Social Security Board | s.6(9) | State Government |
| State Building and Other Construction Workers' Welfare Board | s.7(1) | State Government |
Example. The Central Government forms an opinion that the National Social Security Board has persistently delayed discharging its functions. It must first issue a show-cause notice, consider the Board's reply, and only then supersede by notification. It must make alternate arrangements in the meantime and lay a full report before both Houses of Parliament within three months of the notification.
Need help understanding the administrative structure?
Knowing which body administers which part of the Code helps you file with the right office and respond to the right authority. Our legal consultation team can help you map your establishment to the Code's bodies. Bring your registrations and recent correspondence.
Key takeaways
- The CPF Commissioner and the Director General are whole-time heads and need prior Central Government approval for unconnected work.
- Supersession is allowed for inability, persistent delay, or excess or abuse of powers, after show cause.
- Alternate arrangements run administration until reconstitution.
- A full report goes to Parliament or the State Legislature within three months of the notification.
- Rule 12 requires new members to be appointed and lets the Government make arrangements for a period.
- The Central Government constitutes State Boards of trustees after consulting the State; the Corporation appoints Regional Boards and local committees.
Read next
- Sections 8 and 9: disqualification and procedure
- Sections 13 and 14: additional functions and officers of the Central Board
- Sections 4 and 5: Central Board and ESIC
- 4 Labour Codes 2020: complete guide
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.