Section 159: Rules to give effect to arrangements with other countries for the transfer of money paid as compensation
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Section 159 — Governs rules to give effect to arrangements with other countries for the transfer of money paid as compensation and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) The Central Government may, by notification, make rules for the transfer to any foreign country of money deposited with a competent authority under Chapter VII which has been awarded to or may be due to, any person…
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 may, by notification, make rules for the transfer to any foreign country of money deposited with a competent authority under Chapter VII which has been awarded to or may be due to, any person residing or about to reside in such foreign country and for the receipt, distribution and administration in any State of any money deposited under the law relating to employees' compensation in any…
- Provided that no sum deposited under Chapter VII in respect of fatal accidents shall be so transferred without the consent of the employer concerned after the competent authority receiving the sum has passed orders determining its distribution and apportionment under section 81.
- (2) Where money deposited with a competent authority has been so transferred in accordance with the rules made under this section, the provisions elsewhere contained in this Code regarding distribution by the competent authority of compensation deposited with him shall cease to apply in respect of any such money.
Provisos, explanations & qualifications
- Provided that no sum deposited under Chapter VII in respect of fatal accidents shall be so transferred without the consent of the employer concerned after the competent authority receiving the sum has passed orders determining its distribution and apportionment under section 81.
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, Central Government, Authority / officer
Full statutory text — Section 159
159. Rules to give effect to arrangements with other countries for the transfer of money paid as
compensation.— (1) The Central Government may, by notification, make rules for the transfer to any
foreign country of money deposited with a competent authority under Chapter VII which has been awarded
to or may be due to, any person residing or about to reside in such foreign country and for the receipt,
distribution and administration in any State of any money deposited under the law relating to employees'
compensation in any foreign country, which has been awarded to, or may be due to any person residing or
about to reside in any State:
Provided that no sum deposited under Chapter VII in respect of fatal accidents shall be so transferred
without the consent of the employer concerned after the competent authority receiving the sum has passed
orders determining its distribution and apportionment under section 81.
(2) Where money deposited with a competent authority has been so transferred in accordance with the
rules made under this section, the provisions elsewhere contained in this Code regarding distribution by the
competent authority of compensation deposited with him shall cease to apply in respect of any such money.How to apply this provision
- Primary statutory test — (1) The Central Government may, by notification, make rules for the transfer to any foreign country of money deposited with a competent authority under Chapter VII which has been awarded to or may be due to, any person residing or about to reside in such foreign country and for the receipt, distribution and administration in any State of any money deposited under the law relating to employees' compensation in any…
- Additional operative limb — Provided that no sum deposited under Chapter VII in respect of fatal accidents shall be so transferred without the consent of the employer concerned after the competent authority receiving the sum has passed orders determining its distribution and apportionment under section 81.
- Qualification / exception to test — Provided that no sum deposited under Chapter VII in respect of fatal accidents shall be so transferred without the consent of the employer concerned after the competent authority receiving the sum has passed orders determining its distribution and apportionment under section 81.
- Central Rule mapping — 60. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
- Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker, Central 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 rules to give effect to arrangements with other countries for the transfer of money paid as compensation, 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 may, by notification, make rules for the transfer to any foreign country of money deposited with a competent authority under Chapter VII which has been awarded to or may be due to, any person residing or about to reside in such foreign country and for t” Also test the express qualification/proviso before concluding the result. Read the mapped Central Rule(s) 60.
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 159
What does Section 159 of the Social Security Code cover?
Section 159 — Governs rules to give effect to arrangements with other countries for the transfer of money paid as compensation and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) The Central Government may, by notification, make rules for the transfer to any foreign country of money deposited with a competent authority under Chapter VII which has been awarded to or may be due to, any person…
What is the main legal requirement or power in Section 159?
The first operative clause identified from the official text is: “(1) The Central Government may, by notification, make rules for the transfer to any foreign country of money deposited with a competent authority under Chapter VII which has been awarded to or may be due to, any person residing or about to reside in such foreign country and for the receipt, distribution and administration in any State of any money deposited under the law relating to employees' compensation in any…” Read it with the remaining subsections and any proviso below.
Does Section 159 contain a proviso or explanation?
Yes. A qualification extracted from the official text is: “Provided that no sum deposited under Chapter VII in respect of fatal accidents shall be so transferred without the consent of the employer concerned after the competent authority receiving the sum has passed orders determining its distribution and apportionment under section 81.”
What time limit, percentage or amount appears in Section 159?
No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.
Which 2026 Central Rules are linked to Section 159?
The current concordance maps Section 159 to Central Rule(s) 60.
Is Section 159 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.