The Government of Telangana has released the draft rules for implementing the Code on Social Security, 2020, a landmark central legislation aimed at unifying and modernising India’s diverse social security laws. The Code seeks to extend social security benefits to all categories of workers, including organised, unorganised, and gig workers.
The newly published draft rules outline how the provisions of the Code will operate within the state, including mechanisms for administration, coverage, compliance, and the functioning of statutory bodies.
A Comprehensive Framework Covering All Workers
The Code on Social Security, 2020 (No. 36 of 2020) consolidates nine major labour laws, including the EPF Act, ESI Act, Maternity Benefit Act, Payment of Gratuity Act, and others. Once fully implemented, it aims to deliver a uniform framework of social protection across the country.
The Act extends to the entire territory of India and comes into effect on dates notified by the Central Government for different chapters. The draft rules released by Telangana align with these national provisions.
Key Provisions Highlighted in the Draft Rules
1. Applicability Across Establishments
The Code’s applicability is defined as per the First Schedule, with flexibility for the Central Government to extend coverage to establishments employing a specified minimum number of persons. Even if employee strength later dips below the threshold, the applicable chapter continues.
Additionally, employers and a majority of employees of any establishment may voluntarily opt in or opt out of Chapters III (EPF) or IV (ESI) through mutual agreement, subject to approval by the Central Provident Fund Commissioner or Director General of Employees’ State Insurance Corporation (ESIC).
2. Social Security Organisations and Their Composition
The draft rules reiterate the establishment and structure of key statutory bodies responsible for administering social security schemes.
Central Board of Trustees – EPF (Chapter III)
- Constituted by the Central Government, featuring:
- Chairperson & Vice-Chairperson
- Up to 5 Central Government officials
- Up to 15 State Government representatives
- 10 employer representatives
- 10 employee representatives
- The Central Provident Fund Commissioner (ex officio)
- Empowered to form Executive Committees and other sub-committees for efficient administration.
Employees’ State Insurance Corporation – ESIC (Chapter IV)
- Includes:
- Chairperson & Vice-Chairperson
- Central & State representatives
- Employer and employee representatives
- Medical professionals
- Members of Parliament
- Director General (ex officio)
- Supported by a Standing Committee and Medical Benefit Committee to oversee medical and insurance-related operations.
National Social Security Board (For Unorganised Workers)
- Chaired by the Union Labour Minister
- Comprises 40 nominated members representing:
- Unorganised workers
- Employers
- Civil society
- Parliament
- Central and State Governments
- Union territories
- Focused on protecting unorganised, gig, and platform workers.
3. Major Labour Laws Repealed
The Code consolidates and repeals nine existing labour laws, such as:
- Employees’ Compensation Act, 1923
- ESI Act, 1948
- EPF Act, 1952
- Maternity Benefit Act, 1961
- Payment of Gratuity Act, 1972
- Building & Construction Workers Cess Act, 1996
- Unorganised Workers’ Social Security Act, 2008, among others.
This consolidation introduces uniform definitions, simplified procedures, and streamlined compliance.
Significance of Telangana’s Draft Rules
The release of these draft rules marks a significant step in preparing the state for full-scale implementation of the Social Security Code. Once finalized and notified, the rules will govern how establishments in Telangana comply with EPF, ESI, gratuity, maternity benefits, and welfare schemes for unorganised workers.
The draft rules are expected to bring greater clarity for employers, stronger protections for workers, and a modernised labour welfare system in alignment with national reforms.