Section 20: Chapter not to apply to certain establishments
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Section 20 — Governs chapter not to apply to certain establishments and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) This Chapter shall not apply— (a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other law for the time being in force in any State relating to co-operative societies…
The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- (1) This Chapter shall not apply— (a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other law for the time being in force in any State relating to co-operative societies employing less than fifty persons and working without the aid of power; or (b) to any other establishment belonging to or under the control of the Central Government or a State Government and…
- (2) If the Central Government is of the opinion that having regard to the financial position of any class of establishment or other circumstances of the case, it is necessary or expedient so to do, it may, by notification and subject to such conditions, as may be specified in the notification, exempt, whether prospectively or retrospectively, that class of establishments from the operation of this Chapter for…
Provisos, explanations & qualifications
- No proviso/explanation was separately extracted from this section text.
Thresholds and timelines in the text
- No explicit day/month/year/hour/percentage/rupee expression was detected in this section text.
Actors expressly appearing in the text
Employee / worker, Central Government, State Government
Full statutory text — Section 20
20. Chapter not to apply to certain establishments.—(1) This Chapter shall not apply—
(a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912) or under
any other law for the time being in force in any State relating to co-operative societies employing less
than fifty persons and working without the aid of power; or
(b) to any other establishment belonging to or under the control of the Central Government or a
State Government and whose employees are entitled to the benefit of contributory provident fund or
old age pension in accordance with any scheme or rule framed by the Central Government or the State
Government governing such benefits; or
(c) to any other establishment set up under any Central or State or any other law for the time being
in force and whose employees are entitled to the benefits of contributory provident fund or old age
pension in accordance with any scheme or rule framed under that law governing such benefits; or
(d) to the employees who, immediately before the commencement of this Code, were receiving
benefits of Provident Fund under any Central or State enactment.
(2) If the Central Government is of the opinion that having regard to the financial position of any class
of establishment or other circumstances of the case, it is necessary or expedient so to do, it may, by
notification and subject to such conditions, as may be specified in the notification, exempt, whether
prospectively or retrospectively, that class of establishments from the operation of this Chapter for such
period as may be specified in the notification.How to apply this provision
- Primary statutory test — (1) This Chapter shall not apply— (a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other law for the time being in force in any State relating to co-operative societies employing less than fifty persons and working without the aid of power; or (b) to any other establishment belonging to or under the control of the Central Government or a State Government and…
- Additional operative limb — (2) If the Central Government is of the opinion that having regard to the financial position of any class of establishment or other circumstances of the case, it is necessary or expedient so to do, it may, by notification and subject to such conditions, as may be specified in the notification, exempt, whether prospectively or retrospectively, that class of establishments from the operation of this Chapter for…
- Evidence file — retain facts and records proving the role/status of: Employee / worker, Central Government, State Government.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
For a worker/member seeking a benefit connected with chapter not to apply to certain establishments, the file should show coverage, service/contribution facts, the rule/scheme and prescribed form, and the calculation/payment. One statutory point to test is: “(1) This Chapter shall not apply— (a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other law for the time being in force in any State relating to co-operative societies employing less than fifty persons and working without th”
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 20
What does Section 20 of the Social Security Code cover?
Section 20 — Governs chapter not to apply to certain establishments and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) This Chapter shall not apply— (a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other law for the time being in force in any State relating to co-operative societies…
What is the main legal requirement or power in Section 20?
The first operative clause identified from the official text is: “(1) This Chapter shall not apply— (a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other law for the time being in force in any State relating to co-operative societies employing less than fifty persons and working without the aid of power; or (b) to any other establishment belonging to or under the control of the Central Government or a State Government and…” Read it with the remaining subsections and any proviso below.
Does Section 20 contain a proviso or explanation?
No standalone proviso or explanation was extracted from this section text. Check the full text below for clause-level qualifications.
What time limit, percentage or amount appears in Section 20?
No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.
Which 2026 Central Rules are linked to Section 20?
No direct Central Rule is recorded in the current concordance. That does not exclude a relevant scheme, notification, State rule or enabling provision.
Is Section 20 currently operative?
The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.
Source & verification trail
Act: Code on Social Security, 2020 — official India Code PDF ↗
Central Rules: Social Security (Central) Rules, 2026 — G.S.R. 344(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.