Rule 14 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 14 fills in section 24 of the Code. It says what the Director General and the Financial Commissioner of the Employees' State Insurance Corporation are paid, what each of them does, how the Director General may delegate, and up to which level the Corporation may itself employ officers.
The Director General and the Financial Commissioner, appointed by the Central Government under section 24(1), receive pay, allowances and benefits admissible to Central Government officers at the corresponding level of pay. The Director General is the Chief Executive Officer of the Corporation; the Financial Commissioner keeps the accounts, prepares the budget and arranges internal audit, under the Director General's control. The Corporation's power to employ staff under section 24(7) covers posts carrying a maximum of level 14 in the pay matrix of the Seventh Central Pay Commission.
What section 24 leaves to the Rules
Section 24(1) lets the Central Government appoint a Director General and a Financial Commissioner, who are the Principal Officers of the Corporation. Under s.24(2) each holds office for the period specified in the order of appointment, not exceeding five years, and may be reappointed if otherwise qualified. Section 24(3) says they receive salary and allowances as prescribed by the Central Government, and s.24(4) says they exercise powers and duties as prescribed. Section 24(7) permits the Corporation to employ other officers and employees, and requires Central Government sanction to create a post whose maximum monthly salary exceeds a prescribed amount. Rule 14 is that prescription. See our article on section 24.
This matters to employers indirectly: the Director General, for example, is the authority to whom an employer applies to come out of voluntary ESI coverage under rule 3, and the Financial Commissioner is the officer who maintains the Fund's accounts. If you need help with ESI registration and dealings with the Corporation, see our ESI and PF registration service.
Pay and pension (rule 14(1))
| Point | Rule 14(1) says |
|---|---|
| Pay and benefits | Such pay, allowances and other benefits as are admissible to officers of the Central Government drawing the corresponding level of pay |
| Existing Corporation employees | If the Director General or Financial Commissioner is already in the service of the Corporation, he keeps the pension, gratuity and other superannuation benefits he would otherwise have been entitled to but for the appointment |
The text does not state a figure for the salary; it links it to the Central Government pay scale.
Director General: powers and duties (rule 14(2))
The Director General shall:
- Act as Chief Executive Officer of the Corporation.
- Convene, under the orders of the Chairperson of the Corporation, meetings of the Corporation, the Standing Committee and the Medical Benefit Committee, in accordance with the Code and the Central Rules, and implement their decisions.
- Enter into contracts on behalf of the Corporation in accordance with the Code, the Central Rules or regulations, or the general or special instructions of the Corporation or the Standing Committee.
- Furnish all returns and documents required by the Code or the Central Rules to the Central Government, and correspond with the Central and State Governments on all matters concerning the Corporation.
- Undertake other duties and exercise other powers entrusted to him under the Code and the Central Rules and Regulations.
Delegation
Under rule 14(2)(b), the Director General may, with the approval of the Standing Committee, by general or special order, delegate any of his powers or duties under the Central rules, the regulations or any resolution of the Corporation or the Standing Committee to any person subordinate to him. The delegate acts subject to the restrictions, limitations and conditions the Director General imposes, again with the Standing Committee's approval.
Financial Commissioner: powers and duties (rule 14(3))
Subject to the control of the Director General, the Financial Commissioner shall:
- Maintain the accounts of the Corporation and arrange for compilation by collecting returns from the centres and regions.
- Prepare the budget of the Corporation.
- Arrange internal audit of the accounts of the centres and regions and of the receipts and payments there.
- Recommend investment of the funds of the Corporation.
- Undertake other duties and powers entrusted or delegated to him for executive convenience.
Staff: the level 14 ceiling (rule 14(4))
The powers of the Corporation under s.24(7) to employ officers and employees "shall be exercised by the Corporation in relation to posts carrying maximum of level 14 in the pay matrix as per the Seventh Central Pay Commission". Posts above that level are therefore outside the Corporation's own power to employ under this rule. Section 24(9) separately requires consultation with the Union Public Service Commission for appointments to posts corresponding to Group 'A' and Group 'B' Gazetted posts, other than medical, nursing or para-medical posts, with an exception for officiating or temporary appointments up to one year.
How the pieces fit
| Role | Main tasks under rule 14 | Who they answer to |
|---|---|---|
| Director General | Chief Executive Officer; convenes meetings; signs contracts; files returns; corresponds with Governments | Chairperson of the Corporation, Standing Committee, Central Government |
| Financial Commissioner | Accounts, budget, internal audit, investment recommendations | Director General |
| Corporation (staff) | Employs officers and employees up to level 14 | Central Government for higher posts and certain departures |
A worked example
The Standing Committee approves a general order delegating the signing of routine contracts below a stated value to a regional director, who is subordinate to the Director General. The Director General issues the order with that approval, and adds conditions such as reporting back monthly. The regional director then signs within those limits. A contract involving expenditure above rupees twenty-five crore still needs Standing Committee sanction under rule 17(3)(b); see our article on rules 15, 16 and 17. (Illustrative.)
Need help dealing with the Corporation?
Employers deal with the Corporation through registration, contributions and claims rather than through its principal officers, but the structure shows who can decide what. Our ESI and PF registration team can help you with registrations, filings and correspondence.
Key takeaways
- Pay and benefits follow Central Government officers at the corresponding level.
- The Director General is Chief Executive Officer; he convenes meetings, signs contracts and files returns.
- The Financial Commissioner handles accounts, budget, internal audit and investment recommendations under the Director General's control.
- Delegation needs Standing Committee approval.
- Corporation staff posts: maximum level 14 in the Seventh CPC pay matrix.
Read next
- Section 24: Director General and principal officers of ESIC
- Rules 15, 16 and 17: ESI Fund investment, expenditure and property
- Rule 8: ESIC Standing Committee and Medical Benefit Committee
- Introduction to the ESI Act 1948
Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.