ESIC Directs Mandatory Registration of All Eligible Establishments After Social Security Code Comes Into Force

The Employees’ State Insurance Corporation (ESIC) has directed all eligible establishments to ensure immediate registration following the implementation of the Social Security Code, 2020. The directive makes registration under the Employees’ State Insurance (ESI) scheme compulsory for all establishments covered under the new legal framework.

 

According to the order, the requirement becomes mandatory with the enforcement of the Social Security Code, which has been brought into effect by the Central Government. The Code aims to strengthen social security laws and ensure comprehensive medical and financial protection for employees across eligible establishments.

 

ESIC clarified that once the Code is applicable, all eligible establishments must register themselves with the Corporation without delay. The move is intended to ensure that employees receive statutory benefits such as medical care, sickness benefits, maternity benefits, and financial support in case of employment-related contingencies.

 

The directive also highlights a significant change in the definition of “wages” under Section 2(88) of the Social Security Code. As per the revised definition, wages now include basic pay, dearness allowance, and retaining allowance, if any. With this change, employees earning total wages up to ₹42,000 per month will fall within the coverage of the ESI scheme, thereby expanding the beneficiary base.

 

ESIC officials stated that the revised wage definition would bring a larger segment of the workforce under social security coverage, ensuring wider access to healthcare and insurance benefits. Establishments have been advised to ensure that all eligible employees, including contract workers, are duly registered under the ESI scheme.

 

The Corporation further clarified that registration can be completed online through the Shram Suvidha Portal or the ESIC employer portal, making the process accessible and time-efficient for employers. Regional ESIC offices have been instructed to facilitate compliance and assist establishments in completing the registration process.

 

Officials emphasised that compliance with the registration requirement is mandatory and failure to do so may attract legal consequences under the applicable provisions of the Social Security Code. The directive is being viewed as a crucial step toward strengthening India’s social security framework and ensuring uniform coverage for employees across sectors.