menu_open Columnists
We use cookies to provide some features and experiences in QOSHE

More information  .  Close

Social Security Compliance

32 0
16.05.2026

The Code on Social Security, 2020 (“Code”) lays down a comprehensive framework for ensuring compliance with social security obligations and regulating employment-related information. The provisions relating to offences and penalties prescribe punishments for non-compliance with statutory duties, while the provisions on employment information and monitoring aim to improve reporting of vacancies and labour market administration. Together, these provisions strengthen accountability, transparency, and enforcement under the Code.What is the punishment for failure to pay contributions under the Code?

(a) If an employer fails to pay contributions payable under the Code, he is punishable with imprisonment up to three years.(b) If the offence relates to non-payment of employee contributions deducted from wages, the imprisonment shall not be less than one year and fine of one lakh rupees shall also be imposed.(c) In other cases, imprisonment shall not be less than two months and may extend to six months, along with fine of fifty thousand rupees.(d) The court may impose a lesser imprisonment term for adequate and special reasons recorded in the judgment.Is deducting the employer’s contribution from employee wages punishable?

Yes. Deducting or attempting to deduct the employer’s contribution from employee wages is punishable with fine up to fifty thousand rupees.Is reduction of wages or benefits in violation of the Code punishable?

Yes. Reduction of wages, privileges, or benefits in contravention of the Code is punishable with fine up to fifty thousand rupees.What is the punishment for penalising a woman employee in violation of the Code?Dismissal, discharge, reduction in rank, or penalising a woman employee in contravention of the Code is punishable with imprisonment up to six months, or fine up to fifty thousand rupees, or both.

Is failure to submit returns or information punishable?

Yes. Failure or refusal to submit required returns, reports, statements, or information is punishable with fine up to fifty thousand rupees.What is the punishment for obstructing an Inspector-cum-Facilitator or authorised officer?Obstruction of an Inspector-cum-Facilitator or authorised officer in discharge of duties is punishable with imprisonment up to six months, or fine up to fifty thousand rupees, or both.

What is the punishment for failure to pay gratuity?

Failure to pay gratuity........

© Greater Kashmir