Section 91: Power of Government to Make Rules

Overview

Section 91 of the Code on Social Security, 2020, doesn’t deal with a specific social security benefit like Provident Fund or ESI directly. Instead, it’s a crucial enabling provision. It empowers both the Central and State Governments to create detailed rules and regulations necessary to *implement* all the various benefits and schemes covered under the entire Code. This includes provisions relating to Provident Fund, Employees’ State Insurance, Gratuity, Maternity Benefit, and other social security measures. Think of it as the ‘how-to’ guide for making the Code actually work in practice.

Who is Covered?

• The rules made under Section 91 will generally apply to all employees and establishments covered by the various schemes under the Social Security Code. This broadly includes organized sector employees, and increasingly, unorganized sector workers as well.
• Eligibility conditions for specific benefits (like length of service or wage ceilings) will be defined within the rules framed under this section, and will vary depending on the specific scheme. The Code itself sets broad parameters, but the rules provide the detailed criteria.

Benefits and Contributions

• The benefits available will depend on the specific scheme (Provident Fund, ESI, Gratuity, etc.). Section 91 itself doesn’t define benefits; it allows the government to specify how those benefits are administered and delivered through rules.
• Contribution responsibilities (employer, employee, and government) are also determined by the specific scheme. Section 91 allows the government to detail the contribution rates, payment schedules, and methods of calculation within the rules.

Procedure and Compliance

Section 91 allows the government to lay down procedures for various aspects of compliance. This includes:

1. Registration: Rules will specify how establishments and employees register under the Code and its various schemes.
2. Contributions: Rules will detail how contributions are calculated, collected, and remitted.
3. Returns: Rules will define the format and frequency of returns that employers must file.
4. Claims: Rules will outline the process for employees to file claims for benefits.
5. Appeals: Rules will establish the process for appealing decisions related to benefits or compliance.
6. Electronic Systems: The government can mandate the use of electronic systems for registration, filing returns, and making payments.
7. Compliance Procedures: Rules will specify the penalties for non-compliance.

Practical Examples

• Example 1: The government frames rules specifying that all establishments with more than 20 employees *must* register online through a dedicated portal for Provident Fund contributions. This clarifies a requirement initially outlined in the Code.
• Example 2: An employer fails to remit ESI contributions within the timeframe specified in the rules framed under Section 91. The rules detail a penalty of X% per day of delay, leading to a financial penalty for the employer.

Disclaimer

This article is for basic understanding of social security law and should not be treated as legal advice. The Social Security Code, 2020, is a complex piece of legislation, and specific legal advice should be sought from a qualified professional.