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Labour Laws Central Ministry of Labour and Employment Employees' State Insurance Act, 1948

Implementation of New Wage Definition of the Code on Social Security, 2020 for ESIC Coverage

11-Dec-2025 | No. P-11/12/MinistryMol&E/2024-RevII

The Code on Social Security, 2020 has come into force with effect from 21 November 2025, introducing a revised definition of 'wages' for purposes including ESIC. This new definition differs from the earlier wage definition, and is expected to bring a significant number of previously exempt employees within the ambit of ESIC coverage.

Field units are advised to conduct awareness programmes and ensure that employers comply with the revised provisions by covering all eligible employees as per the new wage definition. Establishments where the number of EPFO-contributing employees exceeds ESIC-contributing employees should be identified and guided to ensure ESIC compliance for employees newly falling under coverage.

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