Gujarat strengthens worker welfare: Key highlights under the social security framework

At a glance

• Gujarat government has released the Code on Social Security (Gujarat) (Amendment) Rules 2025 (Amendment Rules), revising its 2023 framework to strengthen worker welfare and enhance compliance.
• Fixed-term employees are now eligible to receive pro-rated gratuity upon completion of one year of continuous service, in alignment with national reforms.
• In case of an employee’s death during employment, employers must deposit funeral and transport expenses within 48 hours of an employee’s death during employment.
• Welfare boards for building and unorganised workers gain expanded responsibilities, including insurance premiums, education schemes, and medical support.
• The Amendment Rules introduce stricter governance, electronic compliance, and more frequent board meetings to ensure timely implementation.

We would like to express gratitude to JSA for their contribution on this publication.

Pursuant to the powers conferred to it under Section 154 (1) and Section 156 (1) of the Code on Social Security 2020 (SS Code), the State of Gujarat notified the Amendment Rules on 18 August 2025. The Amendment Rules amend the Code on Social Security (Gujarat) Rules 2023 (2023 Rules) and set out the procedure and manner for implementation of the SS Code in the state.

The SS Code subsumes nine existing central legislations and empowers central and state governments to formulate welfare schemes for workers and to extend to them equitable social security benefits. The SS Code is applicable to all workers, including those in the unorganised sector, and establishes a uniform framework for providing access to social security benefits to workers across industries and employment models.

Revisions introduced by the Amendment Rules

The Amendment Rules expand upon the 2023 Rules, by refining provisions related to gratuity, maternity benefits, social security for unorganised workers and welfare of building workers, in alignment with the evolving national social security framework. The Amendment Rules bring the following amendments:

• Employees on fixed-term contracts are eligible to receive gratuity upon completion of a minimum period of one year of continuous service. This is in alignment with the 2018 amendment to the Industrial Employment (Standing Orders) Central Rules 1946 and allows gratuity to be paid on a pro-rata basis for the actual service period, even if it does not meet the five years threshold as provided under the Code on Social Security 2020. A similar model of pro-rated gratuity benefit is adopted in the state of Delhi for fixed-term employees.
• For fatal workplace accidents or injuries, employers must deposit with the competent authority, within 48 hours, a minimum of INR15,000 (or higher as prescribed) towards funeral expenses, in addition to compensation under the SS Code. They must also cover actual transport costs for moving the deceased employee’s body from the place of death or hospital to the native location or site of rituals.
• As required under the SS Code, the Amendment Rules mandate the Gujarat Building and other Construction Workers Welfare Board (Building Workers Board) to:
  • ensure premium payments are made for the group insurance scheme covering beneficiaries;
  • frame educational programmes for the benefit of children of the beneficiaries; and
  • cover medical expenses for major illnesses affecting beneficiaries or their notified dependents.

Beneficiaries refer to building and other construction workers who are registered under the Building Workers Board;

• The Gujarat State Unorganised Workers' Social Security Board must convene every three months, reducing the earlier interval of four months under the 2023 Rules.
• The Gujarat government is required to frame and notify a detailed policy outlining conditions under which social security organisations can raise loans or constitute provident fund or other benefit funds for their officers and staff.
• The Amendment Rules have included a column for witnesses’ declaration in the gratuity nomination / fresh nomination / modification of nomination form, ie, Form-IV, strengthening the authenticity of nomination forms that are submitted.

Conclusion

The state of Gujarat has taken a proactive stance to harmonize state-level labour welfare mechanisms with national framework. The Amendment Rules consolidate and supersede the existing regulations by simplifying compliance processes, enabling electronic submissions for nominations and gratuity claims, extending gratuity benefits to fixed-term employees, and strengthening welfare boards for building workers and unorganised sector workers.

Other States are moving in a similar direction. States such as Karnataka, Maharashtra, and Uttar Pradesh have released draft rules under the SS Code, while Karnataka, Rajasthan and Telangana have gone further by creating dedicated frameworks for gig and platform-based workers. These frameworks emphasize fair and transparent contracts, protection against discrimination and equitable social security benefits. Gujarat, however, remains focused on SS Code implementation and compliances, and is yet to introduce a robust framework targeted at addressing unique challenges faced by gig and platform workers.