Sections 156 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 156 gives State Governments their own rule-making power, section 157 lets the ESI Corporation make regulations for Chapter IV, and section 158 requires draft rules, regulations and schemes to be published for at least 45 days before they are finalised.
The State Government makes rules by notification, subject to previous publication, on the matters in s.156(2) (State boards, Employees' Insurance Court procedure, funeral expenses deposit, review, medical examination, statement forms, competent authority procedure and the State fund). The Corporation (ESIC) makes regulations for Chapter IV and its own administration (s.157). Under s.158, rules, regulations and schemes (except Chapter III schemes) need a draft published at least forty-five days before the date specified for considering it, then final publication, after which they have effect as if enacted in the Code.
Why it matters
If your establishment falls under a State's appropriate-Government authority, the State's rules, not the Central Rules, answer questions on procedure, forms and time limits. ESI compliance is further shaped by regulations made by the Corporation. The 45-day draft period also explains why final rules usually follow a published draft. Our legal consultation service can help you find which State rule, ESIC regulation or scheme applies to your case. For the Central powers see sections 154 and 155.
Section 156: rules by the State Government
156(1): the State Government may, by notification and subject to previous publication, make rules not inconsistent with the Code to give effect to its provisions.
156(2): rules may provide for matters including:
| Clause | Matter |
|---|---|
| (a) | State Unorganised Workers' Board: exercise of powers, nomination of members, terms of office, conditions of service, procedure, filling vacancies, meetings (s.6) |
| (b) | Building Workers' Welfare Board: terms, salaries and allowances of the chairperson and members, casual vacancies, and of the Secretary and staff (s.7) |
| (c) | Procedure of the Employees' Insurance Court (s.50(2), (3)) |
| (d) | Amount to be deposited by the employer for the funeral expenses of the employee with the competent authority (s.76(7)) |
| (e) | Conditions when an application for review may be made without a medical practitioner's certificate (s.79(1)) |
| (f) | Frequent interval for medical examination (proviso to s.84(1)) |
| (g) | Form of statement by the employer under s.88(1) |
| (h) | Manner of dealing with matters before a competent authority (s.92(1)) |
| (i) | Time limit for disposal of applications and costs incidental to proceedings (s.93(4)) |
| (j) | Manner of authentication of memorandum (s.97) |
| (k) | Other sources of funding and administration of the State Social Security Fund (s.141(5)) |
| (l) | Any other matter the State Government may prescribe |
The list is "without prejudice to the generality" of the power, so the State can make other rules that give effect to the Code.
Section 157: regulations by the Corporation
157(1): the Corporation may, by notification and subject to previous publication, make regulations, not inconsistent with the Code and the rules and schemes under it, for administering the affairs of the Corporation and carrying into effect Chapter IV and the provisions of the Code relating to it.
157(2) gives matters including:
- cases to be decided by the Corporation and composition of committees (s.5(4)(b), (6)); Regional Boards and local committees (s.12(2));
- other functions of the Director General and Financial Commissioner, recruitment, salary, discipline and service conditions of staff, and minimum qualifying service for promotion (s.24);
- the unit for contribution and the days on which contributions fall due (s.29(3), (4));
- register of employees kept by or through the contractor and matters of payment and collection of contribution (s.31);
- who certifies sickness or eligibility, conditions for extension of medical benefit and accrual of benefits (s.32);
- continuous period for occupational disease (s.36); constitution of medical board and medical appeal tribunal (s.37);
- medical benefit period and nature, voluntary retirement conditions, bond and service of medical students, surveys (s.39);
- nomination form and authority to determine benefits (s.41); user charges for other beneficiaries (Explanation to s.44);
- time for claims and recovery from employers and recovery by the employer from the contractor (s.51);
- forms of records, registers and returns (s.123); appellate authority not below Joint Director and interest refunded (s.126); manner of levy and recovery of damages (s.128); and
- relaxation of regulations (circumstances, extent and authority) and other matters.
Because these are regulations, due dates for ESI contributions and the claims procedures sit in ESIC regulations, not in the Code text. The Code itself leaves many dates to regulations.
Section 158: prior publication
The power to make rules, regulations and schemes (except the schemes to be framed under Chapter III) is subject to previous publication in this manner:
- (a) the date specified after a draft is under consideration shall be not less than forty-five days from the date on which the draft is published for general information in the Official Gazette;
- (b) the rules, regulations and schemes are finally published in the Official Gazette and, on publication, have effect as if enacted in this Code.
Proviso: the Central Government may, in the circumstances of epidemic, pandemic or disaster, dispense with the condition of previous publication.
The Central Rules, 2026 follow this path: a draft was published on 30 December 2025 (G.S.R. 935(E)) and the final rules were notified as G.S.R. 344(E) on 8 May 2026.
A worked example
A State wants to fix the amount an employer must deposit for the funeral expenses of an employee killed at work. It publishes a draft rule in its Official Gazette under s.156(2)(d) with a date for objections at least forty-five days away, considers objections, then publishes the final rule, which has effect as if it were part of the Code. A company in that State, whose establishment falls under the State Government as appropriate Government, deposits the amount with the competent authority on the State's rule, not a Central one. (Illustrative.)
Need help with State rules or ESIC regulations?
Different establishments follow different rule-makers, and a missed State rule can change a deadline or form. Our legal consultation team can help you check the State notification, ESIC regulation or scheme that governs your establishment.
Key takeaways
- State rules (s.156) cover State boards, Employees' Insurance Court procedure, funeral deposit, review, medical examination and the State fund.
- ESIC regulations (s.157) cover Chapter IV administration, contribution due days, benefits and recovery.
- Drafts must be published for at least 45 days (s.158(a)); final rules have effect as if enacted in the Code.
- Chapter III schemes are outside the previous-publication condition.
- The Centre may dispense with prior publication in an epidemic, pandemic or disaster.
Read next
- Sections 154 and 155: Power to make rules
- Sections 159 and 160: Rules for transfer and laying before Parliament
- Sections 30 and 31: Administrative expenses and payment of ESI contributions
- ESI registration for employers on the ESIC portal
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.