With its implementation in November 2025, the Code now constitutes the principal framework governing social security in India. However, as labour falls within the Concurrent List, both the Central and State Governments are empowered to frame rules within their respective domains.
This gives rise to practical considerations such as:
Central and State rules: While the substantive provisions of the Code remain uniform, procedural requirements, including forms, timelines, authorities and scheme-specific details, may vary across States. Employers with multi-State operations must therefore monitor not only the Central rules but also State-specific notifications and amendments.
“Appropriate Government” determinations: The Code retains the concept of the “appropriate government,” under which either the Central or State government may exercise jurisdiction depending on the nature of the establishment or sector. Clear identification of the appropriate government is critical to ensure correct filings, exemption applications and scheme compliance, and to avoid regulatory overlap or gaps.