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With this notification, the ESI Act, 1948 stands repealed, and ESIC is now governed under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.
For compliance guidance and implementation support, write to
marketing@karmamgmt.com
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