The Employees' State Insurance Corporation (ESIC) on December 30, 2025, issued a notification regarding the implementation of “Code on Social Security, 2020”.
The following has been stated: -
•The Government of India has implemented the Code on Social Security, 2020, with effect from November 21, 2025, repealing the ESI Act, 1948.
•The Code introduces a revised definition of “wages” under Section 2(88), expanding ESI coverage to include many previously excluded employees.
•Wages now broadly include basic pay, dearness allowance, and retaining allowance, while excluding items like bonus, HRA, PF contributions, overtime, gratuity, and retrenchment benefits, subject to prescribed limits.
•Employers are advised to immediately register all eligible employees and ensure timely contribution payments to enable workers to receive social security benefits under the new Code.
The detailed notification is given in the document below.
