ESIC notified regarding the new wage definition u/s 2(88) of ‘The Code on Security, 2020’, implemented w.e.f. 21.11.2025

Dec 15, 2025 | by TeamLease RegTech Legal Research Team

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Labour ComplianceThe Employee’s State Insurance Corporation (ESIC), on December 11, 2025, notified regarding the new wage definition u/s 2(88) of ‘The Code on Security, 2020’, implemented w.e.f. 21.11.2025.

The following has been stated namely: -

• The new wage definition is different from the then wage definition u/s 2(22) of the ESI Act, 1948. With the implementation of the CoSS, 2020, a large number of exempted employees in a covered establishment are likely to be brought back/ covered under ESIC coverage with this new wage definition. 

• As such, field units are advised to make an awareness program in this regard and ensure employers comply accordingly by covering all the employees as per the new wage definition. 

• There are units where the number of contributing employees in EPFO is much more than ESIC. Such a unit may be identified and requested for compliance in respect of employees, who may now fall under the ambit of ESIC.

[Notification No. P-11/12/MinistryMol&E/2024-RevII]


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