{"id":32046,"date":"2026-06-02T23:53:04","date_gmt":"2026-06-02T18:23:04","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=32046"},"modified":"2026-06-03T00:02:49","modified_gmt":"2026-06-02T18:32:49","slug":"guide-old-vs-new-section-social-security-code-2020","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/","title":{"rendered":"Practical Guide Old vs New Section Social Security Code 2020"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a1f3b4a25b22\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a1f3b4a25b22\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Understanding_the_Transition_Old_vs_New_under_Social_Security_Code_2020\" title=\"Understanding the Transition: Old vs New under Social Security Code, 2020 \u00a0\">Understanding the Transition: Old vs New under Social Security Code, 2020 \u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Current_Reality_of_Social_Security_Code_2020_%E2%80%93_Old_vs_New_Sections_Explained\" title=\"Current Reality of Social Security Code, 2020 \u2013 Old vs New Sections Explained \">Current Reality of Social Security Code, 2020 \u2013 Old vs New Sections Explained <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Key_Highlights_of_Social_Security_Code_2020\" title=\"Key Highlights of Social Security Code, 2020\">Key Highlights of Social Security Code, 2020<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Definition_of_Employee\" title=\"Definition of Employee \">Definition of Employee <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Employee_State_Insurance_ESI_Definition\" title=\"Employee State Insurance (ESI) Definition\">Employee State Insurance (ESI) Definition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Coverage_of_Establishments_PF\" title=\"Coverage of Establishments (PF)\">Coverage of Establishments (PF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Applicability_of_ESI\" title=\"Applicability of ESI\">Applicability of ESI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Contribution_Provisions\" title=\"Contribution Provisions\">Contribution Provisions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Benefits_Framework_under_Social_Security_Code_2020\" title=\"Benefits Framework under Social Security Code, 2020\">Benefits Framework under Social Security Code, 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Social_Security_Code_2020_Applicability_Provisions\" title=\"Social Security Code, 2020 Applicability Provisions\">Social Security Code, 2020 Applicability Provisions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Contribution_Benefits_of_Social_Security_Code_2020\" title=\"Contribution &amp; Benefits of Social Security Code, 2020\">Contribution &amp; Benefits of Social Security Code, 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Employee_Welfare_Enhancements\" title=\"Employee Welfare Enhancements\">Employee Welfare Enhancements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Social_Security_Expansion\" title=\"Social Security Expansion\">Social Security Expansion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Construction_Sector_Compliance\" title=\"Construction Sector Compliance\">Construction Sector Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Compliance_Simplification_for_Employers_The_Code_introduces\" title=\"Compliance Simplification for Employers: The Code introduces:\">Compliance Simplification for Employers: The Code introduces:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Employer_Action_Framework_under_Social_Security_Code_2020\" title=\"Employer Action Framework under Social Security Code 2020\">Employer Action Framework under Social Security Code 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Interest_Damages_under_Social_Security_Code_2020\" title=\"Interest &amp; Damages under Social Security Code, 2020\">Interest &amp; Damages under Social Security Code, 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Penalty_Provisions_under_Social_Security_Code_2020\" title=\"Penalty Provisions under Social Security Code, 2020\">Penalty Provisions under Social Security Code, 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Consolidation_of_Laws_under_Social_Security_Code_2020\" title=\"Consolidation of Laws under Social Security Code, 2020\">Consolidation of Laws under Social Security Code, 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Old_vs_New_Approach_under_Social_Security_Code_2020\" title=\"Old vs New Approach\u00a0under Social Security Code, 2020\">Old vs New Approach\u00a0under Social Security Code, 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/carajput.com\/blog\/guide-old-vs-new-section-social-security-code-2020\/#Impact_on_Businesses_HR_Professionals_after_Social_Security_Code_2020\" title=\"Impact on Businesses &amp; HR Professionals after Social Security Code 2020 : \">Impact on Businesses &amp; HR Professionals after Social Security Code 2020 : <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-32049\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/06\/Old-vs-New-Section-Social-Security-Code-2020.jpg\" alt=\"Old vs New Section Social Security Code 2020\" width=\"1080\" height=\"990\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/06\/Old-vs-New-Section-Social-Security-Code-2020.jpg 1080w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/06\/Old-vs-New-Section-Social-Security-Code-2020-300x275.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/06\/Old-vs-New-Section-Social-Security-Code-2020-1024x939.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/06\/Old-vs-New-Section-Social-Security-Code-2020-768x704.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/06\/Old-vs-New-Section-Social-Security-Code-2020-800x733.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_the_Transition_Old_vs_New_under_Social_Security_Code_2020\"><\/span><span style=\"color: #000080;\"><strong>Understanding the Transition: Old vs New under Social Security Code, 2020 \u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>India\u2019s labour law framework has undergone a major transformation with the introduction of the Social Security Code, 2020. Traditionally, HR and compliance professionals referred to separate laws such as PF, ESI, Gratuity, and Maternity Acts. However, the new code consolidates and restructures these laws into a single unified framework, bringing significant changes in definitions, applicability, and compliance requirements. The Social Security Code, 2020 is a game-changing reform in labour law compliance. Understanding the old vs. new mapping is now essential, not optional.<\/p>\n<p>The handwritten note highlights a practical mapping of key changes between old provisions and new sections under the Social Security Code.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Current_Reality_of_Social_Security_Code_2020_%E2%80%93_Old_vs_New_Sections_Explained\"><\/span><span style=\"color: #000080;\"><strong>Current Reality of Social Security Code, 2020 \u2013 Old vs New Sections Explained <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The guide provides a practical overview of India\u2019s labour law reform, focusing on the transition from multiple laws to the Social Security Code, 2020 and its impact on employers and HR compliance.<\/p>\n<p>India consolidated 29 labor laws into 4 Labour Codes to simplify compliance. The objective of the Social Security Code, 2020, is to reduce complexity, improve ease of doing business, and introduce uniform definitions and processes. The result of the Social Security Code, 2020, is a significant reduction in sections, forms, registers, and returns.<\/p>\n<p>Social Security Code, 2020 From fragmented laws to a unified code. Multiple registrations, returns, and licenses are replaced with a single registration and a single electronic return. Registers reduced from 84 to 8, and forms from 181 to 73. Social Security Code, 2020 is Focus shifted from procedural burden \u2192 digital &amp; simplified compliance.<\/p>\n<p>Many companies are still Referring to old sections and Acts, maintaining legacy compliance systems, ignoring new definitions and coverage rules and This creates serious compliance risks<\/p>\n<p>Action Points for Professionals are Map old provisions with new code sections, Update HR policies and SOPs, Align payroll systems with new contribution rules and Revisit employment contracts and benefits structures.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_Highlights_of_Social_Security_Code_2020\"><\/span><span style=\"color: #000080;\"><strong>Key Highlights of Social Security Code, 2020<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-32052\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/06\/\ud835\udc07\ud835\udc11-\ud835\udc02\ud835\udc28\ud835\udc26\ud835\udc29\ud835\udc25\ud835\udc22\ud835\udc1a\ud835\udc27\ud835\udc1c\ud835\udc1e-\ud835\udc08\ud835\udc2c-\ud835\udc0d\ud835\udc28\ud835\udc2d-\ud835\udc09\ud835\udc2e\ud835\udc2c\ud835\udc2d-\ud835\udc00\ud835\udc1b\ud835\udc28\ud835\udc2e\ud835\udc2d-\ud835\udc05\ud835\udc22\ud835\udc25\ud835\udc22\ud835\udc27\ud835\udc20-\ud835\udc11\ud835\udc1e\ud835\udc2d\ud835\udc2e\ud835\udc2b\ud835\udc27\ud835\udc2c-\ud835\udc00\ud835\udc27\ud835\udc32\ud835\udc26\ud835\udc28\ud835\udc2b\ud835\udc1e.jpeg\" alt=\"Highlights of Social Security Code, 2020\" width=\"976\" height=\"1499\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/06\/\ud835\udc07\ud835\udc11-\ud835\udc02\ud835\udc28\ud835\udc26\ud835\udc29\ud835\udc25\ud835\udc22\ud835\udc1a\ud835\udc27\ud835\udc1c\ud835\udc1e-\ud835\udc08\ud835\udc2c-\ud835\udc0d\ud835\udc28\ud835\udc2d-\ud835\udc09\ud835\udc2e\ud835\udc2c\ud835\udc2d-\ud835\udc00\ud835\udc1b\ud835\udc28\ud835\udc2e\ud835\udc2d-\ud835\udc05\ud835\udc22\ud835\udc25\ud835\udc22\ud835\udc27\ud835\udc20-\ud835\udc11\ud835\udc1e\ud835\udc2d\ud835\udc2e\ud835\udc2b\ud835\udc27\ud835\udc2c-\ud835\udc00\ud835\udc27\ud835\udc32\ud835\udc26\ud835\udc28\ud835\udc2b\ud835\udc1e.jpeg 435w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/06\/\ud835\udc07\ud835\udc11-\ud835\udc02\ud835\udc28\ud835\udc26\ud835\udc29\ud835\udc25\ud835\udc22\ud835\udc1a\ud835\udc27\ud835\udc1c\ud835\udc1e-\ud835\udc08\ud835\udc2c-\ud835\udc0d\ud835\udc28\ud835\udc2d-\ud835\udc09\ud835\udc2e\ud835\udc2c\ud835\udc2d-\ud835\udc00\ud835\udc1b\ud835\udc28\ud835\udc2e\ud835\udc2d-\ud835\udc05\ud835\udc22\ud835\udc25\ud835\udc22\ud835\udc27\ud835\udc20-\ud835\udc11\ud835\udc1e\ud835\udc2d\ud835\udc2e\ud835\udc2b\ud835\udc27\ud835\udc2c-\ud835\udc00\ud835\udc27\ud835\udc32\ud835\udc26\ud835\udc28\ud835\udc2b\ud835\udc1e-195x300.jpeg 195w\" sizes=\"(max-width: 976px) 100vw, 976px\" \/><\/p>\n<p>Wider Coverage of Employees : Expanded definition of &#8220;employee.&#8221; Inclusion of gig workers, platform workers, and unorganized workers. First-time formal recognition of new-age workforce<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Definition_of_Employee\"><\/span><span style=\"color: #000080;\"><strong>Definition of Employee <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Earlier: Defined separately under each Act (EPF Act, ESI Act, etc.)<\/li>\n<li>Now (Section 2(14)):\n<ul>\n<li>Unified and expanded definition<\/li>\n<li>Includes gig workers and platform workers<\/li>\n<li>This is a major shift towards inclusive social security coverage<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Employee_State_Insurance_ESI_Definition\"><\/span><span style=\"color: #000080;\"><strong>Employee State Insurance (ESI) Definition<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Earlier: Section 2(9) of ESI Act<\/li>\n<li>Now (Section 2(15)):\n<ul>\n<li>Expanded to include platform-based employment<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Coverage_of_Establishments_PF\"><\/span><span style=\"color: #000080;\"><strong>Coverage of Establishments (PF)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Earlier: Fixed threshold (generally 20 employees)<\/li>\n<li>Now (Section 4):\n<ul>\n<li>Threshold flexibility given to the government<\/li>\n<li>Can notify applicability based on sector or size<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Applicability_of_ESI\"><\/span><span style=\"color: #000080;\"><strong>Applicability of ESI<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Earlier: Section 1(5) \u2013 fixed coverage<\/li>\n<li>Now (Section 5):\n<ul>\n<li>Dynamic applicability based on notification<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Contribution_Provisions\"><\/span><span style=\"color: #000080;\"><strong>Contribution Provisions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Earlier: Fixed contribution rates (e.g., PF Section 14)<\/li>\n<li>Now (Section 12):\n<ul>\n<li>Government empowered to prescribe different rates for different classes<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Benefits_Framework_under_Social_Security_Code_2020\"><\/span><span style=\"color: #000080;\"><strong>Benefits Framework under Social Security Code, 2020<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Earlier: Defined benefit structures under ESI Act (Section 46)<\/li>\n<li>Now (Section 71):\n<ul>\n<li>Flexibility to enhance or modify benefits<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Social_Security_Code_2020_Applicability_Provisions\"><\/span><span style=\"color: #000080;\"><strong>Social Security Code, 2020 Applicability Provisions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>EPF: Applicable to establishments with 20+ employees<\/li>\n<li>ESI: Applicable to 10+ employees, even 1 employee in hazardous industries<\/li>\n<li>Gratuity &amp; Maternity: Applicable to establishments with 10+ employees<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Contribution_Benefits_of_Social_Security_Code_2020\"><\/span><span style=\"color: #000080;\"><strong>Contribution &amp; Benefits of Social Security Code, 2020<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Provident Fund: Employer contribution: 10% of wages and Equal employee contribution<\/li>\n<li>ESI Benefits: Sickness, maternity, disablement, dependents, medical benefits<\/li>\n<li>Gratuity: Payable after 5 years (or for fixed-term employees after 1 year) and Calculated at 15 days wages per year<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Employee_Welfare_Enhancements\"><\/span><span style=\"color: #000080;\"><strong>Employee Welfare Enhancements<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Maternity leave: 26 weeks<\/li>\n<li>Mandatory cr\u00e8che facility for 50+ employees<\/li>\n<li>Medical bonus and nursing breaks provided<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Social_Security_Expansion\"><\/span><span style=\"color: #000080;\"><strong>Social Security Expansion<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Mandatory coverage for Gig &amp; platform workers<\/li>\n<li>Aggregators required to contribute 1\u20132% of turnover<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Construction_Sector_Compliance\"><\/span><span style=\"color: #000080;\"><strong>Construction Sector Compliance<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Cess on construction cost: 1%\u20132%<\/li>\n<li>Registration of workers with welfare boards is mandatory<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Compliance_Simplification_for_Employers_The_Code_introduces\"><\/span><span style=\"color: #000080;\"><strong>Compliance Simplification for Employers: The Code introduces:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Digital filings and records<\/li>\n<li>Unified returns<\/li>\n<li>Standardized registers<\/li>\n<li>Reduced inspections with facilitative approach<\/li>\n<\/ul>\n<p>Emphasis on ease + transparency + accountability<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Employer_Action_Framework_under_Social_Security_Code_2020\"><\/span><span style=\"color: #000080;\"><strong>Employer Action Framework under Social Security Code 2020<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The guide provides a compliance lifecycle approach:<\/p>\n<p>\ud83d\udd39 Foundational Compliance<\/p>\n<ul>\n<li>Registration, licenses, EPF\/ESI setup<\/li>\n<li>Maintaining basic registers<\/li>\n<\/ul>\n<p>\ud83d\udd39 Monthly Compliance<\/p>\n<ul>\n<li>Wage payments<\/li>\n<li>Deposit of PF\/ESI<\/li>\n<li>Issue wage slips<\/li>\n<\/ul>\n<p>\ud83d\udd39 Annual Compliance<\/p>\n<ul>\n<li>Filing unified return<\/li>\n<li>Updating wage rates<\/li>\n<li>Safety audits<\/li>\n<\/ul>\n<p>\ud83d\udd39 Event-Based Compliance<\/p>\n<ul>\n<li>Reporting accidents<\/li>\n<li>Exit settlements<\/li>\n<li>Retrenchment\/closure approvals<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Interest_Damages_under_Social_Security_Code_2020\"><\/span><span style=\"color: #000080;\"><strong>Interest &amp; Damages under Social Security Code, 2020<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Earlier: PF Act Section 32C \u2013 limited provisions<\/li>\n<li>Now (Section 122):\n<ul>\n<li>Interest up to 12% or as prescribed<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Penalty_Provisions_under_Social_Security_Code_2020\"><\/span><span style=\"color: #000080;\"><strong>Penalty Provisions under Social Security Code, 2020<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Earlier: ESI Act Section 85B<\/li>\n<li>Now (Section 142):\n<ul>\n<li>Stronger and enhanced penalties for violations<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Consolidation_of_Laws_under_Social_Security_Code_2020\"><\/span><span style=\"color: #000080;\"><strong>Consolidation of Laws under Social Security Code, 2020<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Earlier: Multiple laws (PF, ESI, Gratuity, etc.) with separate compliance<\/li>\n<li>Now:\n<ul>\n<li>Single Social Security Code<\/li>\n<li>Unified definitions and procedures<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>The Biggest Change: India has moved from multiple fragmented labor laws To one integrated social security code. This is not just renumbering of a section; it is a complete shift in compliance approach<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Old_vs_New_Approach_under_Social_Security_Code_2020\"><\/span><span style=\"color: #000080;\"><strong>Old vs New Approach\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong>under Social Security Code, 2020<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 386px;\" width=\"798\">\n<tbody>\n<tr>\n<td><strong>Old Framework<\/strong><\/td>\n<td><strong>New Code<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Multiple laws (PF, ESI, Gratuity, etc.)<\/td>\n<td>Single unified Social Security Code<\/td>\n<\/tr>\n<tr>\n<td>Different definitions<\/td>\n<td>Standardized definitions<\/td>\n<\/tr>\n<tr>\n<td>Manual &amp; multiple filings<\/td>\n<td>Digital &amp; single filing<\/td>\n<\/tr>\n<tr>\n<td>Limited coverage<\/td>\n<td>Expanded coverage (gig workers)<\/td>\n<\/tr>\n<tr>\n<td>Complex compliance<\/td>\n<td>Simplified &amp; streamlined<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Impact_on_Businesses_HR_Professionals_after_Social_Security_Code_2020\"><\/span><span style=\"color: #000080;\"><strong>Impact on Businesses &amp; HR Professionals after Social Security Code 2020 : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The new code directly affects HR compliance systems, payroll structuring, contractor &amp; gig workforce management, labor law documentation, and employee benefit planning.<\/li>\n<li>The Social Security Code, 2020, is a major compliance reform, not just a legal consolidation. It brings uniformity in labour laws, wider employee coverage, technology-driven compliance, and reduced administrative burden.<\/li>\n<li>The guide emphasizes that employers must move from old law-based compliance to code-based compliance. Understanding old vs. new section mapping and applicability is critical for HR professionals, payroll teams, and compliance managers.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Understanding the Transition: Old vs New under Social Security Code, 2020 \u00a0 India\u2019s labour law framework has undergone a major transformation with the introduction of the Social Security Code, 2020. Traditionally, HR and compliance professionals referred to separate laws such as PF, ESI, Gratuity, and Maternity Acts. However, the new code consolidates and restructures these &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9933],"tags":[10472],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/32046"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=32046"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/32046\/revisions"}],"predecessor-version":[{"id":32054,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/32046\/revisions\/32054"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=32046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=32046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=32046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}