Chapter II SOCIAL SECURITY ORGANISATIONS

1. (1) The Central Government may, by notification, constitute, with effect from such date as may be specified therein, a Board of Trustees of the Employees' Provident Fund to be called the Central Board, for the purposes of Chapter III and the provisions of this Code relating to that Chapter, for the administration of the funds vested in it in such manner as may be prescribed by the Central Government, consisting of the following members, namely:—
   • (a) a Chairperson and a Vice-Chairperson to be appointed by the Central Government;
   • (b) not more than five persons appointed by the Central Government from amongst its officials;
   • (c) not more than fifteen persons representing Governments of such States asthe Central Government may specify in this behalf, to be appointed by the Central Government;
   • (d) ten persons representing employers of the establishments to which the schemes referred to in sub section (1) of section 15 applies, to be appointed by the Central Government after consultation with such organisations of employers as may be recognised by the Central Government in this behalf;
   • (e) ten persons representing employees in the establishments to which schemes referred to in subsection (1) of section 15 applies, who shall be appointed by the Central Government after consultation with such organisations of employees as may be recognised by that Government in this behalf; and
   • (f) the Central Provident Fund Commissioner, ex officio.
2. (2) The Central Board shall be a body corporate by the name of Board of Trustees of the Employees' Provident Fund, having perpetual succession and a common seal and shall by the said name sue and be sued.
3. (3) The Central Government may, by notification, constitute, with effect from such date as may be specified therein, an Executive Committee from amongst the members of the Central Board to assist the Central Board in performance of its functions in such manner as may be prescribed by the Central Government.
4. (4) The Central Board may, by order, constitute one or more committees of such composition as may be specified in the order to assist it in the discharge of its functions.
5. (5) The Central Board may, by order, delegate to its Chairperson or to its Executive Committee or to any of its officers and a State Board constituted under section 12 may, by order, delegate to its Chairperson or to any of its officers, subject to such conditions and limitations, if any, as it may specify in such order, such of its powers and functions under this Code as it may deem necessary for efficient administration of the schemes referred to in sub-section (1) of section 15.
6. (6) The terms and conditions, including tenure of office, subject to which a member of the Central Board and Executive Committee shall discharge their respective duties may be such as may be prescribed by the Central Government: Provided that a member of the Central Board shall, notwithstanding the expiry of the tenure of his office, continue to hold office until his successor is appointed.
7. (7) The Central Board, apart from the functions specified in this Code, shall also perform such other functions in such manner as may be prescribed by the Central Government.

The Central Government may, by notification, constitute with effect from such date as may be specified therein, the Employees' State Insurance Corporation to be called the Corporation, for the purposes of Chapter IV and the provisions of this Code relating to that Chapter and the administration thereof, in such manner as may be prescribed by the Central Government, consisting of the following members, namely:—

1. (a) a Chairperson to be appointed by the Central Government;
2. (b) a Vice-Chairperson to be appointed by the Central Government;
3. (c) not more than five persons to be appointed by the Central Government from amongst its officials;
4. (d) one person representing each of such States in such manner, as may be prescribed by the Central Government;
5. (e) one person to be appointed by the Central Government to represent the Union territories;
6. (f) ten persons representing employers to be appointed by the Central Government in consultation with such organisations of employers as may be recognised for the purpose by the Central Government;
7. (g) ten persons representing employees to be appointed by the Central Government in consultation with such organisations of employees as may be recognised for the purpose by the Central Government;
8. (h) two persons representing the medical profession to be appointed by the Central Government in consultation with such organisations of medical practitioners as may be recognised for the purpose by the Central Government;
   • (i) three members of Parliament of whom two shall be members of the House of the People (Lok Sabha) and one shall be a member of the Council of States (Rajya Sabha) elected respectively by the members of the House of the People and the members of the Council of States; and (j) the Director General of the Corporation, ex officio.

1. (2) The Corporation shall be a body corporate by the name of Employees' State Insurance Corporation, having perpetual succession and a common seal and shall by the said name sue and be sued.
2. (3) The Central Government may, by notification, constitute, with effect from such date as may be specified therein, a Standing Committee from amongst the members of the Corporation, in such manner as may be prescribed by the Central Government.
3. (4) Subject to the general superintendence and control of the Corporation, the Standing Committee—
   • (a) shall administer the affairs of the Corporation and may exercise any of the powers and perform any of the functions of the Corporation in such manner as may be prescribed by the Central Government;
   • (b) shall submit for the consideration and decision of the Corporation all such cases and matters as may be specified in the regulations made in this behalf; and
   • (c) may, in its discretion, submit any other case or matter for the decision of the Corporation.
4. (5) (a) The Central Government may, by notification, constitute, with effect from such date as may be specified therein, a Medical Benefit Committee of such composition as may be specified therein, to assist the Corporation and the Standing Committee in performance of its functions relating to administration of medical benefits.
   • (b) the Medical Benefit Committee shall perform such duties and exercise such powers as may be prescribed by the Central Government.
5. (6) The Corporation may, by order, constitute one or more committees of such composition as may be specified in the regulations to assist it in the discharge of its functions.
6. (7) The terms and conditions, including tenure of office, subject to which a member of the Corporation and Standing Committee shall discharge their respective duties may be such as may be prescribed by the Central Government: Provided that a member of the Corporation shall, notwithstanding the expiry of the tenure of his office, continue to hold office until his successor is appointed.

The Central Government shall, by notification, constitute a National Social Security Board for unorganised workers to exercise the powers conferred on, and to perform the functions assigned to, it under this Code, in such manner as may be prescribed by the Central Government.

1. (2) The National Social Security Board shall consist of the following members, namely:---
   • (a) Union Minister for Labour and Employment as Chairperson;
   • (b) Secretary, Ministry of Labour and Employment as Vice-Chairperson;
   • (c) forty members to be nominated by the Central Government, out of whom---
     • (i) seven members representing unorganised sector workers;
     • (ii) seven members representing employers of unorganised sector;
     • (iii) seven members representing eminent persons from civil society;
     • (iv) two members representing the Lok Sabha and one from the Rajya Sabha;
     • (v) ten members representing Central Government Ministries and Departments concerned;
     • (vi) five members representing State Governments;
     • (vii) one member representing the Union territories; and
   • (d) the Director General Labour Welfare, as Member-Secretary, ex officio.
2. (3) All members except Chairperson of the National Social Security Board shall be from amongst persons of eminence in the fields of labour welfare, management, finance, law and administration.
3. (4) The manner in which members shall be nominated from each of the categories specified in clause (c) of sub-section (2), the term of office and other conditions of service of members, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among the members of, the National Social Security Board shall be such as may be prescribed by the Central Government: Provided that adequate representation shall be given to persons belonging to the Scheduled Castes, the Scheduled Tribes, the minorities and women.
4. (5) The term of the National Social Security Board shall be three years.
5. (6) The National Social Security Board shall meet at least thrice a year, at such time and place and shall observe such rules of procedure relating to the transaction of business at its meetings, as may be prescribed by the Central Government.
6. (7) The National Social Security Board shall perform the following functions, namely:--
   • (a) recommend to the Central Government for framing suitable schemes for different sections of unorganised workers, gig workers and platform workers;
   • (b) advise the Central Government on such matters arising out of the administration of this Code as may be referred to it;
   • (c) monitor such social welfare schemes for unorganised workers, gig workers and platform workers as are administered by the Central Government;
   • (d) review the record keeping functions performed at the State level; (e) review the expenditure from the fund and account; and
   • (f) undertake such other functions as are assigned to it by the Central Government from time to time.
7. (8) The Central Government may, by notification, constitute with effect from such date as may be specified therein one or more advisory committee to advise the Central Government upon such matters arising out of the administration of this Code relating to unorganised workers and such other matters as the Central Government may refer to it for advice.
8. (9) Every State Government shall, by notification, constitute a State Board to be known as (name of the State) Unorganised Workers' Social Security Board to exercise the powers conferred on, and to perform the functions assigned to, it under this Code, in such manner as may be prescribed by the State Government.
9. (10) Every State Unorganised Workers' Board shall consist of the following members, namely:--
   • (a) Minister of Labour and Employment of the concerned State as Chairperson, ex officio;
   • (b) Principal Secretary or Secretary (Labour) as Vice-Chairperson;
   • (c) one member representing the Central Government in the Ministry of Labour and Employment;
   • (d) thirty-one members to be nominated by the State Government, out of whom
     • (i) seven representing the unorganised workers;
     • (ii) seven representing employers of unorganised workers;
     • (iii) two members representing the Legislative Assembly of the concerned State;
     • (iv) five members representing eminent persons from civil society;
     • (v) ten members representing the State Government Departments concerned; and
   • (e) Member-Secretary as notified by the State Government.
10. (11) All members except Chairperson of the State Unorganised Workers' Board shall be from amongst persons of eminence in the fields of labour welfare, management, finance, law and administration.
11. (12) The manner in which members shall be nominated from each of the categories specified in clause (d) of sub-section (10), the term of office and other conditions of service of members, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among the members of, the State Unorganised Workers' Board shall be such as may be prescribed by the State Government: Provided that adequate representation shall be given to persons belonging to the Scheduled Castes, the Scheduled Tribes, the minorities and women.
12. (13) The term of the State Unorganised Workers' Board shall be three years.
13. (14) The State Unorganised Workers' Board shall meet at least once in a quarter at such time and place and shall observe such rules of procedure relating to the transaction of business at its meetings, as may be prescribed by the State Government.
14. (15) The State Board shall perform the following functions, namely:
    • (a) recommend the State Government for framing suitable schemes for different sections of the unorganised sector workers;
    • (b) advise the State Government on such matters arising out of the administration of this Code as may be referred to it;
    • (c) monitor such social welfare schemes for unorganised workers as are administered by the State Government;
    • (d) review the record keeping functions performed at the district level;
    • (e) review the progress of registration and issue of cards to unorganised sector workers;
    • (f) review the expenditure from the funds under various schemes; and
    • (g) undertake such other functions as are assigned to it by the State Government from time to time.
15. (16) The State Government may, by notification, constitute with effect from such date as may be specified therein, one or more advisory committee to advise the State Government upon such matters arising out of the administration of this Code relating to unorganised workers and such other matters as the State Government may refer to it for advice.

1. (1) Every State Government shall, with effect from such date as it may, by notification, appoint, constitute a Board to be known as the................(name of the State) Building and Other Construction Workers' Welfare Board to exercise the powers conferred on, and perform the functions assigned to, it under this section and Chapter VIII.
2. (2) The Building Workers' Welfare Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal and shall by the said name sue and be sued.
3. (3) The Building Workers' Welfare Board shall consist of a chairperson to be nominated by the State Government, one member to be nominated by the Central Government and such number of other members, not exceeding fifteen, as may be appointed to it by the State Government: Provided that the Building Workers' Welfare Board shall include an equal number of members representing the State Government, the employers and the building workers and that at least one member of the Board shall be a woman.
4. (4) The terms and conditions of appointment and the salaries and other allowances payable to the chairperson and the other members of the Building Workers' Welfare Board, and the manner of filling of casual vacancies of the members of the Building Workers' Welfare Board, shall be such as may be prescribed by the State Government.
5. (5) (a) The Building Workers' Welfare Board shall appoint a Secretary and such officers and employees as it considers necessary for the efficient discharge of its functions under this Code.
   • (b) The Secretary of the Building Workers' Welfare Board shall be its chief executive officer.
   • (c) The terms and conditions of appointment and the salary and allowances payable to the Secretary and the other officers and employees of the Building Workers' Welfare Board shall be such as may be prescribed by the State Government.
6. (6) The Building Workers' Welfare Board shall perform the following functions, namely:—
   • (a) provide death and disability benefits to a beneficiary or his dependants;
   • (b) make payment of pension to the beneficiaries who have completed the age of sixty years;
   • (c) pay such amount in connection with premium for Group Insurance Scheme of the beneficiaries as may be prescribed by the appropriate Government;
   • (d) frame educational schemes for the benefit of children of the beneficiaries as may be prescribed by the appropriate Government;
   • (e) meet such medical expenses for treatment of major ailments of a beneficiary or, such dependant, as may be prescribed by the appropriate Government;
   • (f) make payment of maternity benefit to the beneficiaries;
   • (g) frame skill development and awareness schemes for the beneficiaries;
   • (h) provide transit accommodation or hostel facility to the beneficiaries;
     • (i) formulation of any other welfare scheme for the building worker beneficiaries by State Government in concurrence with the Central Government; and
   • (j) make provision and improvement of such other welfare measures and facilities as may be prescribed by the Central Government.
7. (7) The State Government may, by notification, constitute with effect from such date as may be specified therein one or more advisory committee to advise the State Government upon such matters arising out of the administration of this Code relating to building workers and such other matters as the State Government may refer to it for advice.

1. (1) No person shall be chosen as, or continue to be, a member of a Social Security Organisation, or any Committee thereof who,---
   • (a) is or at any time has been adjudged an insolvent; or
   • (b) is found to be a lunatic or becomes of unsound mind; or
   • (c) is or has been convicted of any offence involving moral turpitude; or
   • (d) is an employer in an establishment and has defaulted in the payment of any dues under this Code;
   • (e) is a member of a Social Security Organisation being a member of the Parliament or a member of a State Legislative Assembly, when he ceases to be such member of the Parliament or State Legislative Assembly, as the case may be; or
   • (f) is a member of Social Security Organisation being a member of the Parliament or a member of a State Legislative Assembly, and he becomes a---
     • (i) Minister of Central or State Government; or
     • (ii) Speaker or Deputy Speaker of House of the People or a State Legislative Assembly; or
     • (iii) Deputy Chairman of the Council of States. Explanation 1.--- If any question arises whether any person is disqualified under clause (d), it shall be referred to the appropriate Government and the decision of the appropriate Government on any such question shall be final. Explanation 2.--- Clause (f) shall not apply in case of persons who are members of the Social Security Organisation ex officio, by virtue of being a Minister.
2. (2) The Central Government, in case of the Central Board, the Corporation and the National Social Security Board and the State Government in case of the State Unorganised Workers' Board and the Building Workers' Welfare Board, may remove any member of such Social Security Organisation from his office, who,---
   • (a) is or has become subject to any of the disqualifications mentioned in sub-section (1); or
   • (b) is absent without leave of the Social Security Organisation of which he is a member for more than three consecutive meetings of the Social Security Organisation or a Committee thereof;
   • (c) in the opinion of such Government, has so abused the position of his office as to render that member's continuation in the office detrimental to the public interest or is otherwise unfit or unsuitable to continue as such member in the opinion of such Government: Provided that no person shall be removed under clauses (b) and (c), unless that person has been given an opportunity to show cause as to why he should not be removed: Provided further that a member of the Executive Committee of the Central Board or the Standing Committee of the Corporation shall cease to hold office if he ceases to be a member of the Central Board or the Corporation, as the case may be.
3. (3) Any member of a Social Security Organisation or a Committee thereof may at any time resign from his office in writing under his hand addressed to the Central Government or the State Government, as the case may be, which had made his appointment and on acceptance of such resignation, his office shall become vacant.
4. (4) If in a Social Security Organisation or a Committee thereof, the Central Government or the State Government, as the case may be, is of the opinion that---
   • (a) any member thereof representing employers or the employees or the unorganised workers, as the case may be, ceases to adequately represent so; or
   • (b) any member thereof representing to be an expert in a specified area, is later on found not to possess sufficient expertise in that area; or
   • (c) having regard to exigencies of circumstances or services in such Government, the member thereof representing such Government cannot continue to represent the Government, then, such Government may, by order, remove such member from his office: Provided that no person shall be removed under clause (a) or clause (b), unless that person has been given an opportunity to show cause as to why he should not be removed.
5. (5) If any member of a Social Security Organisation or a Committee thereof, who is a director of a company and who as such director, has any direct or indirect pecuniary interest in any matter coming up for consideration of the Social Security Organisation or a Committee thereof, then, he shall, as soon as may be possible after such fact of interest has come to his knowledge, disclose the nature of the interest and such disclosure shall be recorded in the proceedings of the Social Security Organisation or the Committee thereof, as the case may be, and such member, thereafter, shall not take part in any proceeding or decision of the Social Security Organisation, or a Committee thereof relating to that matter.

A Social Security Organisation or any Committee thereof shall meet at such intervals and observe such procedure in regard to the transaction of business at its meetings (including the quorum at such meetings) as may be prescribed by the Central Government.

1. (2) All orders and decisions of the Social Security Organisation shall be authenticated by the Central Provident Fund Commissioner, Director General, Director General Labour Welfare, State Principal Secretary or Secretary (Labour) of the respective Social Security Organisations or such other officer as may be notified by the appropriate Government and all other instruments issued by the Social Security Organisation shall be authenticated by the signature of such officer as may be authorised by an order by the respective Social Security Organisations.
2. (3) No act done or proceeding taken by a Social Security Organisation or any Committee thereof shall be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of the Social Security Organisation or the Committee thereof, as the case may be.
3. (4) Such members of a Social Security Organisation or any Committee thereof shall be entitled for such fee and allowances as may be prescribed by the Central Government.

The Central Provident Fund Commissioner and the Director General shall be the whole-time officer of the Central Board and the Corporation, respectively, and such officer shall not undertake any work unconnected with his office without the prior approval of the Central Government.

1. (1) If the Central Government in case of the Central Board, the Corporation or the National Social Security Board and the State Government, in case of the State Unorganised Workers' Board or the Building Workers' Welfare Board, is of the opinion that the Corporation or the Central Board or the National Social Security Board or the State Unorganised Workers Board or the Building Workers' Welfare Board or any of the Committee thereof, as the case may be, is unable to perform its functions, or, has persistently made delay in the discharge of its functions or has exceeded or abused its powers or jurisdiction, then such Government may, by notification, supersede the Corporation or the Central Board or the National Social Security Board or the State Unorganised Workers' Board or the Building Workers Welfare Board, or any of the Committees thereof, as the case may be, and reconstitute it in such manner as may be prescribed by the Central Government: Provided that, before issuing a notification under this sub-section on any of the grounds specified herein, such Government shall give an opportunity to the Corporation or the Central Board or the National Social Security Board or the State Unorganised Workers Board or the Building Workers' Welfare Board or any Committee thereof, as the case may be, to show cause as to why it should not be superseded and shall consider the explanations and objections raised by it and take appropriate action thereon.
2. (2) After the supersession of the Corporation, or the Central Board or the National Social Security Board, the State Unorganised Workers Board or the Building Workers Welfare Board, or any of the Committee thereof, as the case may be, and until it is reconstituted, the Central Government or the State Government, as the case may be, shall make such alternate arrangements for the purpose of administration of the relevant provisions of this Code, as may be prescribed by the Central Government.
3. (3) The Central Government or the State Government, as the case may be, shall cause, a full report of any action taken by it under this section and the circumstances leading to such action, to be laid before each House of Parliament or the State Legislature, as the case may be, at the earliest opportunity and in any case not later than three months from the date of the notification of supersession issued under sub-section (1).

1. (1) The Central Government may, by notification,—
   • (i) after consultation with the Government of any State, constitute for that State, a Board of Trustees (hereinafter in this Code referred to as a State Board) which shall exercise such powers and perform such functions as may be assigned by notification, to it by the Central Government from time to time;
   • (ii) specify the manner of constitution of a State Board, the terms and conditions of the appointment of its members and the procedure of its meeting and other proceedings relating thereto.
2. (2) The Corporation may, by order, appoint Regional Boards and local committees in such area and in such manner to perform such functions and to exercise such powers as may be specified in the regulations.

Notwithstanding anything contained in this Code, the Central Government may, by notification,—

1. (i) assign additional functions to a Social Security Organisation including administration of any other Act or scheme relating to social security subject to such provisions as may be specified in this behalf in the notification: Provided that while the additional function of administering the Act or scheme are assigned under this clause to a Social Security Organisation, the officer or authority of such organisation, to whom such function has been assigned, shall exercise the powers under the enactment or scheme required for discharging such function in the manner as may be specified in the notification: Provided further that the Social Security Organisations may assign such additional functions to existing officers or appoint or engage new officers necessary for such purpose, if such functions may not be performed and completed with the assistance of its personnel as existing immediately before the assignment of the additional functions;
2. (ii) specify the terms and conditions of discharging the functions under clause (i) by the Social Security Organisation;
3. (iii) provide that the expenditure incurred in discharging the functions specified in clause (i) including appointment or engagement of personnel necessary for proper discharge of such functions shall be borne by the Central Government;
4. (iv) specify the powers which the Social Security Organisation shall exercise while discharging the functions specified in clause (i); and
5. (v) provide that any expenditure referred to in clause (iii) shall be made by the Social Security Organisation after prior approval of the Central Government.