Section 57: Compulsory insurance
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Section 57 — Governs compulsory insurance and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) With effect from such date as may be notified by the appropriate Government in this behalf, every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a…
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) With effect from such date as may be notified by the appropriate Government in this behalf, every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government, shall, subject to the provisions of sub- section (2), obtain an insurance in the manner prescribed by the Central Government, for his liability for payment towards the gratuity…
- Provided that different dates may be appointed for different establishments or class of establishments or for different areas.
- (2) The appropriate Government may, subject to such conditions as may be prescribed by the Central Government, exempt any employer who had already established an approved gratuity fund in respect of his employees and who desires to continue such arrangement, and every employer employing five hundred or more persons who establishes an approved gratuity fund in the manner prescribed by the Central Government from…
- (3) For the purposes of effectively implementing the provisions of this section, every employer shall within such time as may be prescribed by the Central Government get his establishment registered with the competent authority in the manner prescribed by the appropriate Government and no employer shall be registered under the provisions of this section unless he has taken an insurance referred to in sub-section…
- (4) The appropriate Government may provide for the composition of the Board of Trustees of the approved gratuity fund and for the recovery by the competent authority of the amount of the gratuity payable to an employee from the insurer with whom an insurance has been taken under sub-section (1), or as the case may be, the Board of Trustees of the approved gratuity fund, in such manner as may be prescribed.
Provisos, explanations & qualifications
- Provided that different dates may be appointed for different establishments or class of establishments or for different areas.
- Explanation.— In this section, “approved gratuity fund” shall have the same meaning as assigned to it in sub-section
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
Employer, Employee / worker, Appropriate Government, Central Government, State Government, Authority / officer
Full statutory text — Section 57
57. Compulsory insurance.—(1) With effect from such date as may be notified by the appropriate
Government in this behalf, every employer, other than an employer or an establishment belonging to, or
under the control of, the Central Government or a State Government, shall, subject to the provisions of sub-
section (2), obtain an insurance in the manner prescribed by the Central Government, for his liability for
payment towards the gratuity under this Chapter, from any insurance company regulated by the Authority
as defined under clause (b) of sub-section (1) of section 2 of the Insurance Regulatory and Development
Authority Act, 1999 (41 of 1999):
Provided that different dates may be appointed for different establishments or class of establishments
or for different areas.
(2) The appropriate Government may, subject to such conditions as may be prescribed by the Central
Government, exempt any employer who had already established an approved gratuity fund in respect of his
employees and who desires to continue such arrangement, and every employer employing five hundred or
more persons who establishes an approved gratuity fund in the manner prescribed by the Central
Government from the provisions of sub-section (1).
(3) For the purposes of effectively implementing the provisions of this section, every employer shall
within such time as may be prescribed by the Central Government get his establishment registered with the
competent authority in the manner prescribed by the appropriate Government and no employer shall be
registered under the provisions of this section unless he has taken an insurance referred to in
sub-section (1) or has established an approved gratuity fund referred to in sub-section (2).
(4) The appropriate Government may provide for the composition of the Board of Trustees of the
approved gratuity fund and for the recovery by the competent authority of the amount of the gratuity payable
to an employee from the insurer with whom an insurance has been taken under sub-section (1), or as the
case may be, the Board of Trustees of the approved gratuity fund, in such manner as may be prescribed.
(5) Where an employer fails to make any payment by way of premium in respect of the insurance
referred to in sub-section (1) or by way of contribution to an approved gratuity fund referred to in
sub-section (2), he shall be liable to pay the amount of gratuity due under this Chapter (including interest,
if any, for delayed payments) forthwith to the competent authority.
Explanation.— In this section, “approved gratuity fund” shall have the same meaning as assigned to it
in sub-section (5) of section 2 of the Income-tax Act, 1961 (43 of 1961).How to apply this provision
- Primary statutory test — (1) With effect from such date as may be notified by the appropriate Government in this behalf, every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government, shall, subject to the provisions of sub- section (2), obtain an insurance in the manner prescribed by the Central Government, for his liability for payment towards the gratuity…
- Additional operative limb — Provided that different dates may be appointed for different establishments or class of establishments or for different areas.
- Qualification / exception to test — Provided that different dates may be appointed for different establishments or class of establishments or for different areas.
- Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker, Appropriate Government, Central Government, State Government, Authority / officer.
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 compulsory insurance, 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) With effect from such date as may be notified by the appropriate Government in this behalf, every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government, shall, subject to the provisions of sub-” Also test the express qualification/proviso before concluding the result.
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 57
What does Section 57 of the Social Security Code cover?
Section 57 — Governs compulsory insurance and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) With effect from such date as may be notified by the appropriate Government in this behalf, every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a…
What is the main legal requirement or power in Section 57?
The first operative clause identified from the official text is: “(1) With effect from such date as may be notified by the appropriate Government in this behalf, every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government, shall, subject to the provisions of sub- section (2), obtain an insurance in the manner prescribed by the Central Government, for his liability for payment towards the gratuity…” Read it with the remaining subsections and any proviso below.
Does Section 57 contain a proviso or explanation?
Yes. A qualification extracted from the official text is: “Provided that different dates may be appointed for different establishments or class of establishments or for different areas.”
What time limit, percentage or amount appears in Section 57?
No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.
Which 2026 Central Rules are linked to Section 57?
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 57 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.