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Labour Laws and Practice · Social Security Legislations

Code on Social Security 2020: Overview and Definitions

Updated 11 October 2026 · Fact-checked

The Code on Social Security, 2020 merges earlier social security laws into one Code. It covers employees, unorganised workers, gig workers and platform workers. To answer a question, state the provision, apply the definition to the facts, and conclude. Know the registration and funding rules for gig and platform workers.

Understand Code on Social Security, 2020: Overview and Definitions

The Code on Social Security, 2020 brings several social security laws into a single Code. It deals with benefits such as provident fund, insurance, gratuity, maternity benefit and compensation. It also extends social security to workers outside regular employment.

Start with who is covered. The Code speaks of employees in establishments, and separately of unorganised workers, gig workers and platform workers. Chapter-level provisions for the last three groups are about schemes, registration and funding, not the ordinary employer-employee benefits.

The key definitions (employee, employer, wages, unorganised worker, gig worker, platform worker, aggregator) sit in the definitions section of the Code. Questions on them are usually applied: a fact pattern is given and you decide who counts as what. Read the definition text in your study material word by word. Wages in particular has inclusions and exclusions, and the exact list matters.

For gig and platform workers, the provisions supplied in the official text show how the Code works in practice. Section 113 requires registration. Section 114 lets the Central Government frame schemes and fund them, including through aggregator contributions. Section 141 sets up the Social Security Fund. Section 112 provides helplines and facilitation centres to help workers register and enrol.

The difference between a gig worker and a platform worker lies in the definitions. Learn the exact wording of both from the Code. Do not treat them as the same word. Both are covered by the same registration, scheme and funding provisions in Sections 113, 114 and 141.

Key rules to remember

Registration conditions (Section 113(1))
Registration requires: (a) age of sixteen years completed, or such age as the Central Government prescribes; and (b) a self-declaration in the prescribed form and manner
Applies to unorganised, gig and platform workers. Both conditions must be met.
Registration application (Section 113(2))
Application in prescribed form + documents including Aadhaar number → distinguishable number assigned
Self-registration through the government's electronic system is also provided for.
Benefit eligibility (Section 113(3))
Registered worker → eligible for benefit of the concerned scheme
Registration is the gateway to scheme benefits.
Aggregator contribution rate (Section 114(4))
1% ≤ rate ≤ 2% of annual turnover, as notified; contribution ≤ 5% of amount paid or payable to gig and platform workers
Applies to aggregators in categories in the Seventh Schedule. Annual turnover excludes tax, levy and cess paid or payable to the Central Government. Both limits apply.
Scheme subjects (Section 114(1))
Life and disability cover; accident insurance; health and maternity benefits; old age protection; creche; any other benefit
Schemes are framed and notified by the Central Government.
Funding sources of schemes (Section 114(3))
Central Government; Centre plus State; aggregators; mixed funding; CSR fund under the Companies Act, 2013; any other source
The scheme itself specifies which source applies.
Social Security Fund (Section 141(1))
Central fund sources: Section 109(3), Section 114(3), composition of offences and other central labour law funds; a separate account for each
Each account is spent only for its own purpose (Section 141(2) and (3)).

How to solve Code on Social Security, 2020: Overview and Definitions questions

Use this method for any question on the overview, scope or definitions of the Code.

  1. 1Identify what is asked: a definition, applicability, or a provision on gig and platform workers.
  2. 2Name the provision. Give a section number only if you are sure, such as Sections 113, 114 and 141 for the matters above.
  3. 3State the rule in plain words, with every condition (age, self-declaration, caps on contribution).
  4. 4Apply the rule to the facts. Quote the facts that decide the answer, such as who pays whom and for what.
  5. 5Check the exceptions and limits, for example the 5% ceiling on aggregator contribution.
  6. 6Conclude clearly in one line.
  7. 7Add a practical point where relevant: registration records, aggregator compliance, advice to the client.

Quickest way: Provision, Facts, Conclusion in five lines

When to use it: When time is short and the question is a short fact-based problem.

  1. Write the section and its rule in one sentence.
  2. List the conditions as bullets.
  3. Tick each condition against the facts.
  4. Note any cap or exemption.
  5. Write the conclusion and one compliance point.

Common mistakes in Code on Social Security, 2020: Overview and Definitions

  • Treating gig worker and platform worker as the same term.

    The two are always mentioned together in the Code.

    Fix: Learn the separate definitions in the Code. State that the same chapter provisions apply to both, but define each on its own.

  • Saying aggregator contribution is a flat 2% of turnover.

    Students remember only the upper figure.

    Fix: The rate is notified between 1% and 2% of annual turnover, and the contribution cannot exceed 5% of the amount paid or payable to gig and platform workers.

  • Forgetting that registration needs both age and self-declaration.

    Students recall only the Aadhaar requirement.

    Fix: Section 113(1) sets two conditions: age of sixteen (or as prescribed) and a self-declaration. Aadhaar goes with the application under Section 113(2).

  • Stating that the State Government sets up the central Social Security Fund.

    Both Centre and States have a fund in Section 141.

    Fix: Section 141(1) is the Central Government fund. Section 141(5) is a separate State fund for unorganised workers.

  • Mixing wages inclusions with wages exclusions.

    The wages definition is long and learned from memory.

    Fix: Read the definition from the Code and write inclusions and exclusions as two separate lists.

Worked examples

Example 1

Ravi, aged 17, delivers food through a mobile app run by an aggregator. He wants to avail a scheme for gig workers. Advise him on registration.

Show the solution
  1. Provision: Section 113 requires registration of every unorganised, gig or platform worker.
  2. Conditions: he must have completed sixteen years (or the prescribed age) and submit a self-declaration in the prescribed form and manner.
  3. Ravi is 17, so the age condition is met on the Code's text.
  4. He must apply in the prescribed form with documents including his Aadhaar number. Self-registration on the government's electronic system is also available.
  5. On registration he gets a distinguishable number and becomes eligible for scheme benefits under Section 113(3).
  6. Practical point: Section 112 allows helplines and facilitation centres to help him register and enrol.

Answer: Ravi is eligible to register. He must submit a self-declaration and an application with his Aadhaar number, after which he can avail the benefits of the concerned scheme.

Example 2

A notified aggregator has an annual turnover of ₹500 crore, of which ₹20 crore is tax and cess paid to the Central Government. It paid ₹60 crore to gig workers and platform workers. The notified rate is 2%. What is the maximum contribution under Section 114(4)?

Show the solution
  1. Turnover for the purpose excludes tax, levy and cess paid or payable to the Central Government.
  2. Eligible turnover = ₹500 crore − ₹20 crore = ₹480 crore.
  3. Contribution at 2% = ₹480 crore × 2 ÷ 100 = ₹9.6 crore.
  4. Ceiling under the proviso: 5% of ₹60 crore = ₹3 crore.
  5. The contribution cannot exceed the lower of the two figures.

Answer: The contribution is capped at ₹3 crore, because 2% of eligible turnover (₹9.6 crore) exceeds 5% of the amount paid to gig and platform workers (₹3 crore).

Exam tips

  • Learn the numbers in Section 114(4): 1%, 2% and 5%. Examiners set short problems on them.
  • Write the provision, analysis and conclusion in that order. Case-based answers lose marks for missing conclusions.
  • Keep a list of definitions with their exact keywords, because definition questions reward precise wording.
  • Link Sections 113, 114 and 141 in an answer on gig and platform workers: registration, schemes, then funding.

Practice questions from Social Security Legislations

Code on Social Security, 2020: Overview and Definitions in other exams

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

Code on Social Security, 2020: Overview and Definitions: frequently asked questions

What is the difference between a gig worker and a platform worker under the Code?

They are defined separately in the definitions section of the Code. Read and learn each wording. For registration, schemes and funding, the Code treats both together in the chapter on these workers.

Who must register under Section 113?

Every unorganised worker, gig worker or platform worker must register. The worker must have completed sixteen years of age, or the prescribed age, and submit a self-declaration.

How are schemes for gig and platform workers funded?

Under Section 114(3), a scheme may be funded by the Centre, the Centre and State, aggregator contributions, CSR funds, or other sources. The scheme specifies the source.

What is the cap on aggregator contribution?

The rate is notified between 1% and 2% of annual turnover. The contribution also cannot exceed 5% of the amount paid or payable to gig and platform workers.