1. Background

The Employees’ State Insurance Corporation (ESIC), Regional Office, Mumbai, has issued a Revised Circular dated 12.02.2026 concerning the proposed extension of ESIC coverage to Educational and Medical Institutions employing 10 or more persons in Maharashtra.

This circular is issued in continuation of an earlier circular dated 11.02.2026 and refers to a notification published by the Government of Maharashtra extending the provisions of the Employees’ State Insurance Act, 1948 to such institutions.

2. Legal Development

The Government of Maharashtra has subsequently informed ESIC that:

– The Employees’ State Insurance Act, 1948 stands repealed, and

– The Code on Social Security, 2020 has come into force with effect from 21.11.2025.

In view of the repeal of the ESI Act, the State Government has initiated action to cancel the notification issued under Section 1(5) of the ESI Act, 1948, as the legal basis for such notification no longer exists.

3. Directions Issued by ESIC

Based on the directions of the Government of Maharashtra, ESIC has instructed all field offices to:

– Keep in abeyance the implementation of the said notification, and

– Suspend all further action under the notification until further orders are issued

4. Compliance Implications for Employers

1. a) ESIC Registration

– Educational and Medical Institutions are not required to obtain ESIC registration based solely on the stayed notification.

1. b) ESIC Contributions

– There is no obligation to commence deduction or payment of ESIC contributions pursuant to this notification.

1. c) Returns, Records & Inspections

– No ESIC returns, declarations, or compliance actions are required under this notification.

– Any enforcement action initiated exclusively under this notification is required to be kept in abeyance.

1. d) Existing Coverage

– Institutions already covered under ESIC for other valid reasons (e.g., factories or previously notified establishments) remain unchanged and fully compliant under existing law.

5. Forward-Looking Consideration

While the present notification has been stayed, employers should note that:

– The Government may issue a fresh notification under the Code on Social Security, 2020 covering Educational and Medical Institutions.

– Such notification, if issued, may introduce new thresholds, definitions, or compliance requirements.

Employers are therefore advised to maintain readiness in terms of employee data, wage records, and contractual arrangements, without taking any immediate compliance action.

6. Recommendation

Employers are advised to take note of the circular and maintain status quo with respect to ESIC compliance. No new ESIC registration or contribution is required at present based on the stayed notification. Institutions should, however, closely monitor future notifications issued under the Code on Social Security, 2020 and be prepared to comply promptly once a valid legal framework is notified.

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Dear All,

Find enclosed circular issued by ESI reversing their earlier stand on their direction to establishments on implementing the revision of wages for the purpose of ESI calculation & coverage.

We shall keep you updated on any further directions requiring action on ESI.

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ESIC has updated key definitions under the Social Security Code 2020:

• Widower grandparents are now eligible as dependents.

• For female employees, father-in-law and mother-in-law are now included as family for ESIC medical benefits.

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The Government of India, MOL proposes to extend Employees’ State Insurance (ESI) Act, 1948 to the following establishments in Maharashtra:
• Educational Institutions
• Medical Institutions

The draft notification is enclosed for your information.

The date of implementation is awaited and we will update you as and when its released with more details.

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Department of Employees State Insurance Corporation (ESIC) has issued enclosed guidelines for In-House Renal Transplant Cases involving Non-ESI Donors.

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The Employees’ State Insurance Corporation (ESIC), under the Ministry of Labour & Employment, Government of India, has launched SPREE 2025 (Scheme for Promotion of Registration of Employers and Employees) to encourage the registration of unregistered employers and employees under the ESI Act, 1948.

This scheme was approved during the 195th ESI Corporation Meeting chaired by Dr. Mansukh Mandaviya, Hon’ble Union Minister for Labour & Employment and Youth Affairs & Sports.

Key Benefits of SPREE 2025:

• It is effective from 1st July to 31st December 2025
• No inspection or demand for past dues for pre-registration period.
• Voluntary and hassle-free registration process.
• Immunity from retrospective penalties.
• Employees become eligible for ESI benefits (medical care, cash benefits, protection).

In case you require our services to comply with the registration process, you may reach out to us.

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