ESIC Transitions to Code on Social Security 2020

Regulatory Update | ESIC

ESIC Officially Transitions to the Code on Social Security, 2020

Notification dated 30 December 2025 confirms applicability for ESIC purposes from 21 November 2025.

What has changed

The Employees’ State Insurance Corporation (ESIC) has issued an official notification dated 30 December 2025, confirming that the Code on Social Security, 2020 has come into effect for ESIC purposes from 21 November 2025. With this notification, the ESI Act, 1948 stands repealed, and ESIC is now governed under the provisions of the Social Security Code.

A key aspect of this transition is that ESIC wages will now be determined as per the wage definition prescribed under the Code on Social Security, replacing the earlier Act-based interpretation. This marks an important legislative shift in India’s labour law framework and aligns ESIC with the broader consolidation of social security laws.

Employer advisory

Employers are advised to take note of this change and ensure that their compliance framework, payroll systems, and documentation are aligned with the applicable legal provisions under the Code.

Reference documents

ESIC under Code on Social Security: Risk, Direction & Readiness (PDF) Implementation of Code on Social Security, 2020 (PDF)

The above links are provided for reference to support internal review and compliance alignment.

For compliance guidance and implementation support, write to marketing@karmamgmt.com

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