Sections 141 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 141 sets up a Central Social Security Fund for unorganised, gig and platform workers (and a State fund for unorganised workers). Section 142 requires people to establish their identity through Aadhaar to register, claim benefits or use career-centre services under the Code.
The Central Government establishes a Social Security Fund for unorganised, gig and platform workers, fed by scheme funding under ss.109(3) and 114(3) and by composition of Central offences and other central social security funds (s.141(1)). Separate accounts are kept for each source and spent only for that purpose (s.141(2), (3)). The State Government sets up its own fund for unorganised workers (s.141(5)). Under s.142, identity for registration, benefits, withdrawal, career-centre services and ESI treatment is established through Aadhaar.
Why it matters
For platform aggregators and other employers of gig or platform workers, s.141 and the related s.114 are where any contribution to the Fund originates. For every employer, s.142 is the reason PF, ESI and gratuity claims now depend on Aadhaar details being correct. A mismatch between payroll records and Aadhaar can delay an employee's claim. Our labour law compliance service can help you audit member and nominee details. For the related schemes, see sections 109 to 112 and sections 113 and 114.
Section 141: the Social Security Fund
Central fund (s.141(1) to (4))
| Item | What the Code says |
|---|---|
| Purpose | Social security and welfare of unorganised workers, gig workers and platform workers |
| Sources | (i) funding received under s.109(3); (ii) funding received under s.114(3); (iii) composition of offences under the Code relating to the Central Government and any other Social Security Fund under any other central labour law |
| Accounts | A separate account for each of the three sources (s.141(2)) |
| Expenditure | For the purposes for which each separate account was established (s.141(3)) |
| Administration | In the manner prescribed by the Central Government (s.141(4)) |
State fund (s.141(5))
The State Government establishes a Social Security Fund for the welfare of unorganised workers. It receives amounts from composition of offences under the Code relating to the State Government and from other sources the State prescribes, and is administered and spent as the State prescribes.
Rule 64 of the Central Rules, 2026
Rule 64 adds detail for the Central Fund:
- Funds received under s.141(1) of the Code and under s.115(1) of the Occupational Safety, Health and Working Conditions Code, 2020 are credited to separate accounts and called the Social Security Fund; expenses for schemes notified under sections 109 and 114 are met from it.
- The Central Government identifies the sources for initial funding and replenishment.
- It is administered by the Central Government through a designated agency, which must comply with the Central Government's directions.
- The agency keeps the statement of accounts in the form specified and submits it to the Central Government.
- The accounts are audited by the Comptroller and Auditor General of India.
Where the State Government is the appropriate Government, the State's own rules govern the State fund.
Section 142: Aadhaar
When identity must be shown through Aadhaar
An employee, unorganised worker or other person must establish identity (and that of family members or dependants) through an Aadhaar number for:
- (a) registration as a member or beneficiary;
- (b) seeking any benefit, whether in kind, cash or medical sickness benefit, or pension, gratuity or maternity benefit, or withdrawal of fund;
- (c) availing services of a career centre; or
- (d) receiving any payment or medical attendance as an Insured Person, for himself or his dependants.
"Aadhaar" has the meaning in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.
Foreigner employee proviso
A foreigner employee must obtain and submit an Aadhaar number for establishing identity as soon as possible, on becoming resident within the meaning of clause (v) of section 2 of the Aadhaar Act, 2016.
Issue in accordance with Aadhaar Act
Section 142(2) says the Aadhaar number issued to an individual must be in accordance with section 3 of the Aadhaar Act, 2016.
What the Rules add
The Central Rules, 2026 repeatedly build on Aadhaar. For example, rule 65 makes it a condition for exemption under s.143 that the establishment has seeded the Aadhaar number of each member (or insured person and family members) in the respective database, and other rules ask for Aadhaar details of nominees. See our note on sections 143 and 144.
A worked example
A gig platform worker registers on the portal notified for a scheme under s.114 and identifies herself through Aadhaar, as s.142(1)(a) requires. A State notifies a funeral assistance scheme for unorganised workers; the State Social Security Fund under s.141(5) meets it from composition money and other sources the State has prescribed. Separately, an employee who has moved jobs asks for PF withdrawal; her claim is processed only when her Aadhaar details match the member record under s.142(1)(b). (Illustrative.)
Need help with member records and Aadhaar seeding?
Clean member, nominee and dependant details prevent rejected claims later. Our labour law compliance team can review records against the requirements in the Code and the Rules and explain how a platform's gig-worker obligations connect to the Fund.
Key takeaways
- The Central Fund has three sources and three separate accounts; money is spent only for the account's purpose.
- Composition money from Central offences goes to the Central Fund; from State offences to the State fund.
- Under Rule 64 the Fund is administered through a designated agency and audited by the CAG.
- Aadhaar is required for registration, benefits, withdrawal, career-centre services and Insured Person treatment.
- Foreigner employees must submit Aadhaar as soon as they become resident.
Read next
- Sections 143 and 144: Power to exempt and defer
- Sections 113 and 114: Registration and schemes for gig and platform workers
- How to activate UAN and link Aadhaar
- GST for freelancers and gig workers
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.