Central regulation

Social Security Code — EPF, ESI & Gratuity Convergence

Notified 21 November 2025, consolidates EPF Act, ESI Act, Gratuity Act, Maternity Benefit Act, Employees' Compensation Act and unorganised workers schemes. Mandates ESIC for all establishments with 10+ employees regardless of district notification.

Definition

Notified 21 November 2025, consolidates EPF Act, ESI Act, Gratuity Act, Maternity Benefit Act, Employees' Compensation Act and unorganised workers schemes. Mandates ESIC for all establishments with 10+ employees regardless of district notification.

What it means in practice

Social Security Code — EPF, ESI & Gratuity Convergence is administered by Ministry of Labour & Employment. The obligation is grounded in Code on Social Security, 2020 + Code on Social Security (Central) Rules, 2020 (Chapters III-VII).

Gratuity now payable to fixed-term employees on pro-rata basis (no 5-year minimum). Aggregator workers covered for first time.

Triggers (applicability predicates)

These predicates are evaluated by Compliance Radar's applicability engine against a business profile to decide whether this rule applies.

Deadlines and penalty

Cadence: monthly

Penalty for default: Non-deposit of contributions: fine Rs 1 lakh - Rs 3 lakh + 1-3 years imprisonment; repeat default attracts 2-5 years imprisonment under Sec 133.

Citations