Section 109: Framing of schemes for unorganised workers
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Section 109 — Governs framing of schemes for unorganised workers and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) The Central Government shall frame and notify, from time to time, suitable welfare schemes for unorganised workers on matters relating to— (i) life and disability cover;
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) The Central Government shall frame and notify, from time to time, suitable welfare schemes for unorganised workers on matters relating to— (i) life and disability cover;
- (iv) education; and (v) any other benefit as may be determined by the Central Government.
- (2) The State Government shall frame and notify, from time to time, suitable welfare schemes for unorganised workers, including schemes relating to— (i) provident fund;
- (3) Any scheme notified by the Central Government under sub-section (1), may be— (i) wholly funded by the Central Government; or (ii) partly funded by the Central Government and partly funded by the State Government; or (iii) partly funded by the Central Government, partly funded by the State Government and partly funded through contributions collected from the beneficiaries of the scheme or the employers as may…
- (4) Every scheme notified by the Central Government under sub-section (1) shall provide for such matters that are necessary for the efficient implementation of the scheme including the matters relating to all or any of the following, namely:— (i) scope of the scheme;
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
Employer, Worker, Central Government, State Government, Authority / officer
Full statutory text — Section 109
109. Framing of schemes for unorganized workers.— (1) The Central Government shall frame and
notify, from time to time, suitable welfare schemes for unorganised workers on matters relating to—
(i) life and disability cover;
(ii) health and maternity benefits;
(iii) old age protection;
(iv) education; and
(v) any other benefit as may be determined by the Central Government.
(2) The State Government shall frame and notify, from time to time, suitable welfare schemes for
unorganised workers, including schemes relating to—
(i) provident fund;
(ii) employment injury benefit;
(iii) housing;
(iv) educational schemes for children;
(v) skill upgradation of workers;
(vi) funeral assistance; and
(vii) old age homes.
(3) Any scheme notified by the Central Government under sub-section (1), may be—
(i) wholly funded by the Central Government; or
(ii) partly funded by the Central Government and partly funded by the State Government; or
(iii) partly funded by the Central Government, partly funded by the State Government and partly
funded through contributions collected from the beneficiaries of the scheme or the employers as may
be specified in the scheme by the Central Government; or
(iv) funded from any source including corporate social responsibility fund within the meaning of
the Companies Act, 2013 (18 of 2013) or any other such source as may be specified in the scheme.
(4) Every scheme notified by the Central Government under sub-section (1) shall provide for such
matters that are necessary for the efficient implementation of the scheme including the matters relating to
all or any of the following, namely:—
(i) scope of the scheme;
(ii) authority to implement the scheme;
(iii) beneficiaries of the scheme;
(iv) resources of the scheme;
(v) agency or agencies that will implement the scheme;
(vi) redressal of grievances; and
(vii) any other relevant matter,
and a special purpose vehicle may also be constituted by the Central Government for the purpose of
implementation of any such scheme.How to apply this provision
- Primary statutory test — (1) The Central Government shall frame and notify, from time to time, suitable welfare schemes for unorganised workers on matters relating to— (i) life and disability cover;
- Additional operative limb — (iv) education; and (v) any other benefit as may be determined by the Central Government.
- Evidence file — retain facts and records proving the role/status of: Employer, Worker, 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 framing of schemes for unorganised workers, 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) The Central Government shall frame and notify, from time to time, suitable welfare schemes for unorganised workers on matters relating to— (i) life and disability cover;”
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 109
What does Section 109 of the Social Security Code cover?
Section 109 — Governs framing of schemes for unorganised workers and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) The Central Government shall frame and notify, from time to time, suitable welfare schemes for unorganised workers on matters relating to— (i) life and disability cover;
What is the main legal requirement or power in Section 109?
The first operative clause identified from the official text is: “(1) The Central Government shall frame and notify, from time to time, suitable welfare schemes for unorganised workers on matters relating to— (i) life and disability cover;” Read it with the remaining subsections and any proviso below.
Does Section 109 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 109?
No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.
Which 2026 Central Rules are linked to Section 109?
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 109 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.