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CS Executive · Setting Up of Business, Industrial and Labour Laws

The Code on Social Security, 2020 for CS Executive

The Code on Social Security, 2020 merges the older social security laws into one Code covering provident fund, pension, ESI, gratuity, maternity benefit, employee compensation and welfare for unorganised, gig and platform workers. To solve questions, state the provision, apply it to the facts, then conclude with the section.

What this chapter covers

This chapter is part of Paper 3, Part II (Industrial and Labour Laws). It is one of the four Labour Codes, in force from 21 November 2025. The Code brings social security rules for workers into a single framework. It covers retirement savings, health insurance, gratuity, maternity benefit, compensation for work injury, and schemes for workers outside regular employment.

The chapter has two broad parts. The first is the machinery: definitions, the boards, the funds and the schemes. For example, Section 6 sets up the National Social Security Board and a State Unorganised Workers' Board in every State. Section 141 sets up the Social Security Fund. The second part is the benefits and compliance side: who contributes, who gets what, how registration works, and what happens on default.

It connects to the other Labour Codes in the paper. Terms like employee, employer, wages and establishment appear across all of them, so the definitions here help you elsewhere. It also links to Company Law, because a company is an employer with registration and contribution duties, and a Company Secretary advises on this compliance.

This chapter matters because it is a full, self-contained Code with many provisions that can be asked as short answers, case-based questions or compliance questions. Papers are written, so you must state the provision, apply it and conclude. Students who learn the structure, such as who sits on which board, how long the term is, and what the fund is spent on, can write accurate and well-organised answers. The law is also new, so questions often test whether you know the current Code rather than the older Acts it replaced.

The Code on Social Security, 2020: topics in the order to study them

  1. 1Introduction and Definitions under Social Security CodeEvery later topic uses these terms, so learn them first.
  2. 2Social Security Organisations and BoardsOnce terms are clear, learn who administers the Code, including the Section 6 boards, their members, terms and functions.
  3. 3Employees' Provident Fund and Pension SchemesThis is the core retirement-benefit scheme and the base for contribution and compliance rules.
  4. 4Employees' State Insurance and Its BenefitsIt follows provident fund because it is the other major contribution-based scheme, covering health and related benefits.
  5. 5Gratuity, Maternity Benefit and Employee CompensationThese are employer-paid benefits with their own eligibility conditions, best learned after the contribution schemes.
  6. 6Social Security Fund and Schemes for Gig and Unorganised WorkersThis links back to the boards and covers Section 141 and the newer categories of workers.
  7. 7Contributions, Registration and Compliance ProcedureWith the benefits known, you can now learn the practical steps an employer must follow.
  8. 8Offences, Penalties and Central Government DirectionsLearn this last, since penalties make sense only once you know the duties being enforced.

How to prepare The Code on Social Security, 2020

Treat this chapter as a Code with a clear structure. Build the framework first, then fill in details and practise writing.

  1. Read the topic list once to see the shape of the Code before studying any detail.
  2. Learn the definitions and make a one-page glossary in your own words. Revise it often.
  3. Make comparison notes for each scheme: who is covered, who contributes, what the benefit is and who administers it.
  4. For the boards, memorise the structure: chairperson, vice-chairperson, categories of nominated members, term of three years, meeting frequency and functions. Note that the National Board meets at least thrice a year and the State Board at least once a quarter.
  5. Learn the Social Security Fund by its sources, separate accounts and purpose. Know the difference between the Central and State funds.
  6. Practise short answers in the ICSI style: provision, facts, conclusion, with the section cited where you are sure of it.
  7. Finish with the compliance and penalty topic, then revise using a one-page summary and fresh case-style questions.

Common mistakes in The Code on Social Security, 2020

  • Mixing up the National Board and the State Board.

    Fix: Make a two-column table of chairperson, vice-chairperson, members, meeting frequency and functions, and revise it.

  • Writing the repealed Acts' rules as if they still apply.

    Fix: Answer from the Code only. Mention the old Acts only when a question asks you to contrast.

  • Assuming gig and platform workers are covered by the State Board's functions.

    Fix: Remember that the National Board's functions name gig and platform workers, while the State Board's functions refer to unorganised workers.

  • Giving section numbers from memory when unsure.

    Fix: Cite a section only when certain. A correct provision in plain words with a clear conclusion earns marks.

  • Treating the Social Security Fund as one pool.

    Fix: Remember the separate account for each source, spent only for the purpose of that account.

  • Listing provisions without applying them to the facts.

    Fix: In every answer, state the rule, apply it to the facts given, and end with a clear conclusion.

Last-day revision: The Code on Social Security, 2020

  • The Code on Social Security, 2020 is one of the four Labour Codes, in force from 21 November 2025.
  • Section 6 provides for a National Social Security Board and a State Unorganised Workers' Board in every State.
  • The term of both the National Board and each State Board is three years.
  • The National Board meets at least thrice a year. A State Board meets at least once in a quarter.
  • The National Board is chaired by the Union Minister for Labour and Employment. The Vice-Chairperson is the Secretary of that Ministry.
  • The National Board has forty nominated members, including seven each for unorganised workers, employers and civil society.
  • The National Board recommends schemes for unorganised, gig and platform workers. A State Board recommends schemes for unorganised workers.
  • State Board functions include reviewing registration and issue of cards to unorganised workers.
  • Adequate representation must be given to Scheduled Castes, Scheduled Tribes, minorities and women in board nominations.
  • Section 141: the Central Government establishes a Social Security Fund for unorganised, gig and platform workers.
  • The Central Fund keeps a separate account for each source and spends each account only for its purpose.
  • A State Government also establishes its own Social Security Fund for unorganised workers, credited with composition amounts and other prescribed sources.

The Code on Social Security, 2020 practice questions

The Code on Social Security, 2020 in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

The Code on Social Security, 2020: frequently asked questions

What is the Code on Social Security, 2020?

It is a Labour Code that brings social security laws for workers into one framework. It covers provident fund, pension, ESI, gratuity, maternity benefit, employee compensation and welfare for unorganised, gig and platform workers.

Which paper of CS Executive has this chapter?

It is in Paper 3, Setting Up of Business, Industrial and Labour Laws, in Part II. Part II carries 40 marks, and the paper is written.

Do I need to remember section numbers?

Cite the section where it matters and you are sure of it, such as Section 6 for the boards and Section 141 for the Social Security Fund. If you are not sure, state the rule in plain words.

How long is the term of the Social Security Boards?

The term of the National Social Security Board is three years. The term of each State Unorganised Workers' Board is also three years.

What is the Social Security Fund under the Code?

It is a fund the Central Government establishes for the social security and welfare of unorganised, gig and platform workers. Separate accounts are kept for each source. State Governments also set up their own fund for unorganised workers.