Next duePayroll
31 OCTForm 24Q / 26Q · TDS return · Jul–Sep 2026in 14 days 7 NOVTDS / TCS deposit · Deducted in Oct 2026in 21 days 15 NOVPF & ESI · Contributions · Oct 2026in 29 days 15 JUNForm 16 · Salary TDS certificate · FY 2026-27in 241 days 20 OCTGSTR-3B · Summary return · Sep 2026in 3 days 21 OCTTax Audit Report · Form 3CA/3CB · AY 2026-27 · extended from 30 Sepin 4 days 30 OCTAOC-4 · Financial statements · FY 2025-26in 13 days 11 NOVGSTR-1 · Outward supplies · Oct 2026in 25 days
All due dates

Rules 63-64 of the Code on Social Security (Central) Rules, 2026: Informing Employees of Compensation and the Social Security Fund

At the time of employment, every employer must inform the employee of the right to compensation under the Code, in writing and by electronic means, in English, Hindi or the...

Published
Updated
Reading time
6 min
Views
9
Questions
6 answered
  • Expert Reviewed
  • High Complexity
Topic
Labour Laws
Published
September 30, 2026
Last updated
Sep 30, 2026
Reading time
6 min
0:00
Last updated: September 2026Verified against: Government sources

Rule 63 of the Code on Social Security (Central) Rules, 2026 makes it the employer's job to tell every employee, at the time of employment, about the right to compensation under the Code. Rule 64 creates the operating framework for the Social Security Fund that pays for schemes for unorganised, gig and platform workers.

Rule 63: tell every employee at the start

Rule 63 is a single sentence. Every employer shall, at the time of employment of an employee, inform the employee of his right to compensation under the Code, in writing and by electronic means, in English or Hindi or the official language of the area of employment, which is known to the employee.

What this means in practice:

ElementWhat the rule says
WhoEvery employer
WhenAt the time of employment
WhatThe employee's right to compensation under the Code
HowIn writing and by electronic means
LanguageEnglish, Hindi, or the official language of the area of employment, known to the employee

The rule does not prescribe a format, a form number or a penalty for missing it. It does not say what the notice must list beyond the right to compensation. So an onboarding pack with a short clause on compensation is the natural way to comply: a written letter in a language the employee reads, and an email or portal message that carries the same content. Keep a record of delivery. HR teams should add it to the joining checklist alongside the appointment letter. Compensation itself is explained in sections 73 to 75; if you want a review of onboarding documents against the Rules, our labour law compliance team can do it.

Example. A manufacturer in a Hindi-speaking State hires a machine operator who reads Hindi. The onboarding packet includes a Hindi note on his right to compensation, and the same note is emailed to him on the joining date. The HR file keeps both.

Rule 64: the Social Security Fund

Rule 64 is titled "Establishment and administration of Social Security Fund". It says:

  • Rule 64(1): The following funds received are credited to separate account(s), called the Social Security Fund, and all expenses towards the scheme notified under sections 109 and 114 for unorganised workers, gig workers or platform workers are met from it: (a) funds under section 141(1) of the Code on Social Security, 2020, and (b) funds under section 115(1) of the Occupational Safety, Health and Working Conditions Code, 2020.
  • Rule 64(2): The Central Government identifies the sources for initial funding or replenishing the Fund from time to time.
  • Rule 64(3): The Fund is administered by the Central Government through an agency designated by it, in the manner it specifies.
  • Rule 64(4): The agency must comply with the directions of the Central Government.
  • Rule 64(5): The agency maintains a statement of accounts in the form and manner specified and submits it to the Central Government from time to time.
  • Rule 64(6): The accounts are audited by the Comptroller and Auditor General of India.

Employers are not directly asked to do anything under rule 64, but aggregators and other contributors should know where their money goes. Rule 49(1)(c) separately says contributions collected under section 114 from aggregators are kept as part of the Social Security Fund in a separate account for gig and platform workers, as specified in section 141(2).

How the two rules connect with the Code

ProvisionLink
Rule 63Supports the compensation chapter of the Code; see sections 77 and 78 on payment
Rule 64(1)Sections 109 (unorganised workers) and 114 (gig and platform workers) for schemes; section 141(1) for the Fund
Rule 64(6)Audit by the CAG

For the Fund provisions in the Code, see sections 141 and 142 and sections 113 and 114. The rules apply where the Central Government is the appropriate Government. State Governments may run their own schemes and rules.

What the rules do not say

  • Rule 63 has no stated penalty and no prescribed form.
  • Rule 64 gives no contribution rate and no name for the designated agency. Do not assume either.
  • The text does not say which agency is designated; that depends on a Central Government designation.

Need help with onboarding and compliance?

A short written notice at joining is easy to forget, and it is the kind of gap an inspection or claim can expose. Our labour law compliance team can review your joining documents and help align them with the Code and the Central Rules for your establishment.

Key takeaways

  • Tell every employee about the right to compensation at the time of employment, in writing and electronically (rule 63).
  • Use English, Hindi or the official language of the area that the employee knows.
  • The Social Security Fund is held in separate accounts and funds schemes for unorganised, gig and platform workers (rule 64(1)).
  • The Central Government administers it through a designated agency; the CAG audits it (rule 64(3), (6)).
  • State-sphere establishments follow the State's own rules.

Read next

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.

Quick recapKey facts & short answers

Key Facts About Rules 63-64

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

When must the employee be told about compensation?

At the time of employment (rule 63).

In what language?

English, Hindi or the official language of the area of employment, which is known to the employee.

An honest "we were late" filed today is better than a perfect return filed next quarter.

— TaxClue Compliance Desk

Rules 63-64: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

Related Services & Guides

Was this article helpful?
About the author
13,350 articles
Vikas Sharma Verified expert Tax & Compliance Expert

Experienced in company registration, GST, trademark, and compliance. Helping Indian businesses stay compliant.

Last reviewed: Live

Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

At the time of employment (rule 63).

English, Hindi or the official language of the area of employment, which is known to the employee.

The rule says "in writing and by electronic means", so use both.

All expenses towards the scheme notified under sections 109 and 114 for unorganised, gig or platform workers (rule 64(1)).

The Comptroller and Auditor General of India (rule 64(6)).

Rule 63 states none. Check the penalty provisions of the Code in section 133 for general consequences.