The Law Today: Code on Social Security, Chapter VII
Which law now governs compensation for work injuries in India: Chapter VII of the Code on Social Security, 2020, the Central Rules of 2026, the competent authority, and how the position differs from older material written under the 1923 Act.
The law has moved
For about a century, compensation for work injuries was governed by the Employees' Compensation Act, 1923, earlier called the Workmen's Compensation Act. That Act was repealed from 21 November 2025. From the same date the subject is governed by Chapter VII, sections 73 to 99, of the Code on Social Security, 2020.
The Code was published in the Gazette in September 2020 but commenced later, so the date that matters is 21 November 2025. Older books, forms and insurance wordings still name the 1923 Act, and a reader has to translate them into the Code's sections and terms.
The Rules
The Social Security (Central) Rules, 2026 were notified on 8 May 2026. They superseded the Employee's Compensation Rules, 1924, the Employee's Compensation (Transfer of Money) Rules, 1935 and the Employee's Compensation (Venue of Proceedings) Rules, 1996.
The Central Rules deal with employee's compensation in seven rules, 57 to 63. They cover the interest rate on delayed compensation (rule 57), notice to another competent authority (58), the form and manner of application (59), transfer of money abroad and related proceedings (60 to 62), and the employer's duty to inform the employee of the right to compensation (63).
Who decides, and who does what
Disputes go to a competent authority. The old Act called this officer the Commissioner. Under section 91 the State Government appoints the competent authority for a notified area. Where the employer and the employee do not agree, it decides questions of liability, amount and the nature or extent of disablement. Civil courts have no jurisdiction over those questions, and the authority has the powers of a civil court for taking evidence.
The Code divides the work between the Centre and the States. The percentages used in the compensation formula are in the Code itself. The interest rate, any monthly-wages figure and any minimum amount are for the Central Government. Appointing the competent authority and making procedural rules, such as venue and time limits for disposal, are left to the State Government.
What older material gets wrong, and what still holds
Older study material quotes fixed rupee minimum amounts for death and permanent total disablement. The Code states no such figure. Section 76 gives the formula amount or an amount as may be notified by the Central Government from time to time, whichever is more. Because the Code contains no rupee minimum, those older figures are not stated here as current.
The vocabulary has changed as well. The Code says competent authority where the old Act said Commissioner, damages where it said penalty for the sum added on unjustified delay, and medical practitioner where it said qualified medical practitioner.
Much of the substance is unchanged: the 50% and 60% formulas with the age factor, the two-year period for claims, and the appeal to the High Court continue under the Code.
Rules at a glance
Reading an old manual in 2026
Illustration: a new executive joins the personnel department of a construction firm in October 2026 and finds a manual that tells her to file papers with the Commissioner under the Workmen's Compensation Act and quotes a fixed rupee minimum for death. She translates it. The law is now Chapter VII of the Code on Social Security, 2020. The officer is the competent authority appointed by the State Government. The form and manner of application are in the Social Security (Central) Rules, 2026. The rupee minimum in the manual is not in the Code, which leaves any such amount to Central Government notification.
Key points
- Since 21 November 2025 the employer's liability for work injuries is set by Chapter VII (sections 73 to 99) of the Code on Social Security, 2020.
- The Employees' Compensation Act, 1923 was repealed from the same date.
- The Social Security (Central) Rules, 2026, notified on 8 May 2026, deal with employee's compensation in rules 57 to 63.
- The competent authority, appointed by the State Government, decides liability and amount where the parties do not agree.
- The Code states no rupee minimum for death or permanent total disablement and leaves any such amount to Central Government notification.
- Older books, forms and insurance wordings still name the 1923 Act.
Common misunderstandings
- The 1923 Act is not the current law: it was repealed from 21 November 2025, though older documents still name it.
- September 2020 is not the commencement date: the Code was published then, but Chapter VII came into force on 21 November 2025.
- 8 May 2026 is not when the law changed: it is the date the Central Rules were notified.
- There is no Commissioner under the Code: the deciding officer is the competent authority.
- The fixed rupee minimums in older material are not in the Code: section 76 refers to an amount the Central Government may notify.
Questions people ask
Can a civil court decide a disputed compensation claim?
No. Questions of liability, amount and the nature or extent of disablement are for the competent authority, and civil courts have no jurisdiction over them.
Who appoints the competent authority?
The State Government, for a notified area, under section 91 of the Code.
Where is the interest rate on delayed compensation found?
In rule 57 of the Social Security (Central) Rules, 2026.
What this lesson relies on
- Code on Social Security, 2020 — Chapter VII (sections 73 to 99), sections 76, 91 and 164
- Social Security (Central) Rules, 2026 — rules 57 to 63
This lesson was reviewed independently against these sources on 8 October 2026. Rules change: check the current regulation, scheme document or policy wording before relying on any figure. This is education, not advice.