COMPLIANCE HANDBOOK FOR EMPLOYERS UNDER THE FOUR
LABOUR CODES (CENTRAL GOVERNMENT SPHERE) ISSUED BY MINISTRY OF LABOUR AND
EMPLOYMENT
Contents
Chapter1: About
the Handbook
Chapter2: Reforms Introduced under
Labour Codes
Chapter3: The Code on Wages, 2019
Chapter4: The Industrial Relations
Code, 2020
Chapter 5: The Occupational Safety,
Health & Working Conditions Code, 2020
Chapter6: The Code on Social Security,
2020
Chapter7: Summary of Action Points for
Employers
Annexure1: Key Definitions – The Code on
Wages, 2019
Annexure2: Key Definitions – The
Industrial Relations Code, 2020
Annexure3: The Third Schedule, The
Industrial Relations Code, 2020
Annexure 4: The Third Schedule, The Occupational Safety, Health and Working
Conditions Code, 2020
Annexure 5: The First Schedule, The Code on Social Security, 2020
Chapter
1: About the Handbook
The
Second National Commission on Labour (2002) had recommended, inter-alia, that
the existing Labour Laws should be broadly grouped into four or five Labour
Codes on functional basis. Accordingly, Ministry of Labour and Employment,
after extensive consultations with the stakeholders, rationalized, simplified
and amalgamated the relevant provisions of the labour laws in four codes. For
employers, this means clearer rules, simpler procedures and reduced
compliances.
This
Handbook has been prepared to make the employers aware of the new provisions in
a simplified manner. Each chapter provides an overview of compliances under
each Code, with a focus on making compliance simpler, faster, and easier. The
Handbook primarily covers provisions of the Codes for the establishments for
which the appropriate government is Central Government. Further, details will
be prescribed in the Rules that the Central Government will notify under the
respective Codes.
Disclaimer:
This
Handbook is intended solely as a reference document for employers on compliance
provisions of the new Labour Codes and do not purport to be a legal document.
In the event of any discrepancy between the contents of this Handbook and the
provisions of the new Labour Codes, the latter shall prevail. Any such
discrepancies noticed may kindly be brought to the attention of the Ministry of
Labour and Employment for necessary clarification or correction.
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CENTRAL GOVERNMENT EMPLOYEES GROUP INSURANCE SCHEME, 1980 ACCOUNTING
PROCEDURE – MASTER CIRCULAR BY CGA, FIN MIN DATED 17.02.206
New Delhi
Dated: 17.02.2026
Subject:
Central Government Employees Group Insurance Scheme, 1980 Accounting Procedure.
The
accounting procedure for the transactions under the Central Government
Employees Group Insurance Scheme, 1980 as introduced by the ministry of
Finance, Department of Expenditure vide their O.M. No.F.15(3)/78-WIP dated the
31st October, 1980 was issued vide CGA’s OM No. S.11013/2/81/TA/2907 dated
22.09.1981. Subsequent amendments in this regard were also issued vide CGA’s
OMs dated 01.03.1982, 22.09.1982, 27.09.1984 and 26.12.1985. For convenience of
the stakeholders, the accounting procedure has been revised incorporating all
the amendments issued thereafter.
Head
of Account
Insurance
2.
There will be no individual accounting under the Scheme. The transactions under
the Scheme will be booked in the Public Account of India under a new minor head
“Central Government Employees’ Group Insurance Scheme below the existing major
head “8011-Insurance and Pension Funds”).
Deduction
from Pay Bills
3. In
the portion of the pay bills pertaining to classification, the DDOs should
exhibit the total subscription recovered from the employees under the minor
head indicated above. They should attach a duly completed schedule to the pay
bills for January (2) every year as per Annexures A (2), The Pay & Accounts
Office will post the figures appearing in the schedules in a register in the
form as per Annexure B (parts I) [2] for the preparation of the Annual Report
referred to in para 5 etc.
Payments
of dues to beneficiaries
4.
Separate bills in a simple receipt form as in Annexure C will be prepared in
respect of payments arising under the scheme for drawing the amount towards
disbursement to the payees concerned. The D.D.Os. will work out the payments
with reference to para 11 of the Annexure to the Ministry of Finance
O.M.No.F.15(3) /78-WIP dated the 31st October, 1980 and the Table of benefits
from the Savings Fund issued by that Ministry from time to time.
1.
Amended vide CGA’s OM dated 17.07.2012
2. Amended vide CGA’s OM dated 27.09.1984
The
bills will indicate separately entitlements from (i) Insurance Fund and (ii)
Savings Fund. This amount will be classified under the respective sub-heads
mentioned below: –
8011 (1)-
Insurance and Pension Funds.
-Central Government Employees Group Insurance Scheme (new minor head)
-Insurance Fund (sub-head)
-Savings Fund (sub-head)
The
bills will be invariably sent by the D.D.Os. to the Pay & Accounts Officer
concerned along with the Service Books which contain service particulars,
nominations etc. The Pay & Accounts Offices will pass the bills
expeditiously (especially in respect of claims on account of death of a member)
after exercising the necessary checks and ensuring that the classification is
correct, book the payments finally in the concerned books against the two
distinct sub-heads (debit side) and make a note of payment in the service books
which will be attested by Pay and Accounts Officer. Each case where payment has
been made shall also be noted in the register as per Annexure B (Part II &
III-Payments).
Annual
Report
5. The
Pay and Accounts Officers will send a report to the Controller of Accounts of
the Ministry/Department concerned by 20th February following (the
completion of each anniversary of the Scheme in the form as per annexure D. The
Controllers of Accounts shall consolidate the figures received from various
PAOs and send a consolidated report in the same form to the Chief
Controller of Accounts, Ministry of Finance [1] by 15th March following (2) the
completion of each anniversary of the Scheme. The Chief Controller of
Accounts, Ministry of Finance(l) shall consolidate the figures for
all Ministries/Departments and send a consolidated report in the same form to
the Ministry of Finance within 3 months of the completion of each anniversary
of the Scheme.
In the
case of PAOs (Audit), a similar report will be sent by them to the PAO
(Audit-Director of Audit, Central Revenues) who will consolidate the figures
and send a consolidated report to the Chief Controller of Accounts,
Ministry of Finance (1) by 15th March following ) the completion of
each anniversary of the Scheme. This shall include the recoveries effected from
Divisional Accountants and finally accounted for in the Central Section by the
PAOs (Audit). In the case of Defence, P&T and Railways, the respective
Chief Accounting Authorities will similarly consolidate the reports received
from the lower accounting formations and arrange to send the consolidated
report to the Chief Controller of Accounts, Ministry of Finance (1) by
15th March following the completion of each anniversary of the scheme.
Transfer
of members
6. If
an employee is transferred from one Ministry /Department/ Office to another
Ministry /Department/ Office, the orders of transfer should clearly indicate
the Group to which he belongs and the dates of his continuous membership in
this Group and also in the lower groups, if any, for the benefits from the
Insurance Fund or both Insurance and the Savings Fund, as the case may be,
under the Central Government Employees’ Group Insurance Scheme, 1980.
Insurance
1.
Amended vide CGA’s OM dated 17.07.2012
2. Amended vide CGA’s OM dated 26.12.1985
The
Head of Office shall, inter-alia endorse a copy of the orders of transfer to
the DDO and the PAO. On receipt of the orders of transfer, the D.D.O. shall
incorporate a certificate on the LPC to the effect that the individual
concerned has subscribed to the Insurance Fund or both to the Insurance Fund
and Savings Fund, as the case may be, upto and including the month of …………………
As soon as the certificate from the D.D.O. of the Department which has
transferred the employee has been received by the. D.D.O. of the new
Department, he shall commence recovery of the subscription from the individual
concerned beyond the month up to which such subscription has been recovered
earlier.
In
respect of Government servants on deputation to State Governments/ Union
Territories (4) or on foreign service, accounting, payment and reporting
work arising under the Scheme (E.g. watching of receipt of contribution and
crediting to Govt. accounts, passing of bills relating to payments, if any)
will be done by the Accounts Officer of his parent Department who is
responsible for watching receipt of G.P. Fund etc. recoveries. (In this
connection, provisions of para 9.4.1 of the Civil Accounts Manual 2024 may be
referred to).
Consolidation
of accounts and calculation of interest
7. On
the basis of the monthly accounts figures under CGEGIS, 1980 for the Central
Government, made available by Controller General of Accounts, Chief Controller
of Accounts, Ministry of Finance will work out each month in respect of
credits, the position creditable to the Insurance Fund and the portion
creditable to the Savings Fund (2). The total amount of subscription initially
classified under the minor head “CGEGIS” (Credit side) shall be apportioned
between the two sub-heads “Insurance Fund” and “Saving Fund” by adopting the
percentage prescribed by the Ministry of Finance (3). After taking into account
the payment made during a quarter, the positive balance under each of the two
funds shall be credited with interest calculated at the rate of interest
notified by the Ministry of Finance, Department of Economic Affairs for the
purpose. The amount of interest credited to the two funds taken together shall
have the contra-debit to the following head of accounts.
2049 (2)
-Interest on Small Savings, Provident Fund etc.
-Interest on Insurance and Pension Funds (minor head)
-Central Government Employees Group Insurance Scheme (New Sub-head).
These
figures will be incorporated in the Government of India’s account of the month
following the quarter so that the balance of each fund for the month following
the quarter includes also the interest credited to the balance of the previous
quarter.
8. Deleted
(3).
9.
Transactions under the Scheme arising under the P.&.T. and Defence
Departments, will be booked to the final heads of accounts indicated in paras 2
and 4 above by the respective accounts organisations. However, the transactions
pertaining to the employees of the Railways under the Scheme would be
adjustable finally in the books of the P.A.O (Ministry of Finance, Department
of Expenditure). Monthly cash settlement in respect of these will be effected
by the Railway Accounts authority through the head ‘8658 (2)-Suspense
accounts-Suspense Account (Railways)-PAO Suspense-Items under Group Insurance
Scheme-adjust-able by P.A.O’ (Department of Expenditure) with a break up
furnished under the two distinct funds of the Scheme in the case of debits
but without any such break up in the case of credits. The relevant
schedules of recoveries and payment vouchers need not, however, be sent to
the P.A.O, but a certificate should be sent, to the effect that the total
amount of credits/debits passed on, agree with the figures in the
compiled accounts.
Insurance
1.
Amended vide CGA’s OM dated 01.03.1982
2. Amended vide CGA’s OM dated 17.07.2012
3. Amended vide CGA’s OM dated 27.09.1984
10.
DAMA Section of CGA’s Organisation will also provide a summary of the credits
and debits under the two distinct funds at the close of every month’s account.
Chief Controller of Accounts, Ministry of Finance will intimate Ministry of
Finance, the total amount of interest credited to each of these funds during
the year as soon as the March Supplementary account of each Financial year is
closed.(1) :
Submission
of estimates
11. At
the appropriate time every year, the estimates of accruals and disbursements
under the Scheme, as well as of interest payments (to be paid for in the
interest payments appropriations), will be furnished to the Budget Division by
the Chief Controller of Accounts, Ministry of Finance (1).
Proforma
Account (2)
12. It
has been decided to maintain only a Proforma Account of utilisation of Funds
accumulated under the Scheme towards House Building Advance to Central
Government Employees envisaged in Para 14 of the Scheme. Accordingly, the
Proforma Account shall be maintained by the Chief Controller of Accounts,
Ministry of Finance (1).
Sr.
Accounts Officer(TA)
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