Why Chapter II matters for APFC

In plain language: These are the bodies that run or advise on social security. The Central Board of Trustees runs the provident-fund schemes through EPFO. ESIC runs employees’ state insurance. The National and State Social Security Boards deal with unorganised, gig and platform workers. State Building Workers’ Welfare Boards look after registered construction workers. Chapter II tells you who sits on each body and who chairs it.

An APFC officer works inside an organisation that one of these bodies controls. That is why the commission likes to ask who chairs a board, who acts as its member-secretary, which section creates it and what it administers. Chapter II of the Code, “Social Security Organisations”, covers Sections 4 to 13. It brings the EPF board, ESIC, the unorganised-worker boards and the construction-worker boards into one chapter, and gives them one common set of rules on disqualification, procedure and supersession.

Section 2(79) defines “Social Security Organisation” to mean the CBT, ESIC, NSSB, State Unorganised Workers’ Boards, BOCW Welfare Boards and any other organisation the Centre declares. Learn the Code’s wording closely, because some designations differ from the old Acts. The ESIC’s medical body, for example, is now the Medical Benefit Committee, not Council.

Master table: who chairs what

Central Board of Trustees, EPF (Section 4)

The Central Government constitutes the Central Board by notification. Under Section 4(1) it has: (a) a Chairperson and a Vice-Chairperson appointed by the Centre; (b) not more than five Central Government officials; (c) not more than fifteen State Government representatives; (d) ten employer representatives; (e) ten employee representatives, both chosen after consulting recognised organisations; and (f) the Central Provident Fund Commissioner, ex officio. Five and fifteen are ceilings. Ten and ten are fixed numbers.

The Board is a body corporate with perpetual succession and a common seal (Sec 4(2)). The Centre may constitute an Executive Committee from among Board members (Sec 4(3)), and the Board may form other committees by order (Sec 4(4)). It may delegate powers to its Chairperson, the Executive Committee or its officers (Sec 4(5)). A member stays in office after their tenure ends until a successor is appointed (Sec 4(6)). Section 14 makes the CPFC the Chief Executive Officer of the Board and head of EPFO, assisted by a Financial Adviser and Chief Accounts Officer. Appointment to the post of CPFC, Additional CPFC, Financial Adviser and Chief Accounts Officer, or any other post under the Board carrying a pay scale equivalent to a Central Group A or Group B post, shall be made after consultation with the UPSC, except a posting not exceeding one year, or if the person is a member of the IAS or already serving in a Group A or Group B post under the Central Government or the Board (Sec 14(5)).

ESIC, Standing Committee and Medical Benefit Committee (Section 5)

Under Section 5(1), the Corporation has: a Chairperson and a Vice-Chairperson appointed by the Centre; up to five Central officials; one representative from each State and one for the Union territories; ten employer and ten employee representatives; two representatives of the medical profession; three MPs (two from the Lok Sabha and one from the Rajya Sabha, elected by their Houses); and the Director General, ex officio. It too is a body corporate.

The Standing Committee (Sec 5(3)–(4)) is drawn from Corporation members and runs the Corporation’s affairs, subject to its general superintendence. The Medical Benefit Committee (Sec 5(5)) assists on medical benefits. Its composition is set by notification. Section 24 names the Director General and the Financial Commissioner as the Principal Officers, each with a tenure of up to five years. The Centre may remove either of them at any time, and must do so if the Corporation recommends removal by a resolution passed at a special meeting and supported by the votes of not less than two-third of the total strength of the Corporation (Sec 24(6)). Section 12(2) lets the Corporation set up Regional Boards and local committees.

National Social Security Board and State Boards (Section 6 and Section 114(6))

The NSSB for unorganised workers has the Union Labour Minister as Chairperson and the Labour Secretary as Vice-Chairperson. Its forty nominated members, under Section 6(2)(c), are seven representing unorganised-sector workers, seven representing their employers, seven eminent persons from civil society, two representing the Lok Sabha and one from the Rajya Sabha, ten from concerned Central ministries and departments, five from State Governments and one from the Union territories. The DG Labour Welfare is ex officio Member-Secretary. The term is three years, and the Board meets at least thrice a year. Its functions are to recommend schemes, advise the Centre, monitor Central welfare schemes for unorganised, gig and platform workers, review record-keeping at State level and review expenditure from the fund.

Under Section 114(6), the same NSSB acts as the Board for gig and platform workers, but with a different membership: five aggregator representatives, five gig/platform worker representatives, the DG of ESIC, the CPFC, expert members, five States by rotation and a Joint Secretary, MoLE as Member Secretary. The October 2026 notification constituted both versions.

Each State constitutes a State Unorganised Workers’ Social Security Board under Section 6(9). It is chaired by the State Labour Minister (ex officio), with the Principal Secretary or Secretary (Labour) as Vice-Chairperson, one member representing the Central Government in the Ministry of Labour and Employment, and thirty-one members nominated by the State Government (seven unorganised workers, seven employers, two members of the State Legislative Assembly, five eminent persons from civil society and ten from concerned State departments), plus a Member-Secretary notified by the State Government. It has a three-year term and meets at least once a quarter. These boards build on the e-Shram and welfare schemes covered in our social security schemes for unorganised workers notes.

Building Workers’ Welfare Boards (Section 7)

Every State constitutes a Building and Other Construction Workers’ Welfare Board as a body corporate. It has a chairperson nominated by the State, one member nominated by the Centre and up to fifteen other members. The State Government, employers and building workers must have equal numbers, and at least one member must be a woman. The Board appoints a Secretary, who is its chief executive officer. Its functions include death and disability benefits, pension at 60, group insurance premiums, children’s education, medical expenses for major ailments, maternity benefit, skill development and transit hostels.

Common provisions: Sections 8 to 13

• Sec 8: disqualifications include being insolvent, of unsound mind, convicted of an offence involving moral turpitude, or an employer in default of dues under the Code; an MP or MLA who ceases to hold that seat; and an MP or MLA who becomes a Minister, Speaker or Deputy Speaker, or Deputy Chairman of the Rajya Sabha (this last head does not apply to a person who is a member ex officio by virtue of being a Minister). A member may also be removed for absence without leave from more than three consecutive meetings, or if the Government thinks the member has abused the office or is otherwise unfit, after a show-cause notice. Resignation and certain other removals (for example, if a representative or expert no longer fits the role) are also provided for.
• Sec 9: procedure. Orders and decisions are authenticated by the CPFC, Director General, Director General Labour Welfare, or the State Principal Secretary or Secretary (Labour) of the respective organisation, or such other officer as the appropriate Government may notify. A vacancy or a defect in constitution does not invalidate acts.
• Sec 10: the CPFC and the DG are whole-time officers of the CBT and the ESIC.
• Sec 11: the appropriate Government may supersede a body after a show-cause notice. A report must be laid before Parliament or the State Legislature within three months.
• Sec 12: State Boards of Trustees (EPF) and ESIC Regional Boards and local committees.
• Sec 13: the Centre may give these bodies additional functions, including running other social security Acts or schemes.

Old Acts vs the Code: section map

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