The Ministry of Labour and Employment, on May 08, 2026, issued a notification under the Code on Social Security, 2020 clarifying the continuation of employee status for social security coverage where wages exceed the prescribed wage ceiling during an ongoing contribution period.
The notification provides that an employee whose wages cross the notified wage ceiling after the commencement of a contribution period shall continue to be treated as an employee for the remainder of that contribution period for purposes of Chapter IV of the Code relating to Employees’ State Insurance (ESI) membership and benefits.
The clarification has been issued under the first proviso to Section 2(26) read with Section 2(89) of the Code on Social Security, 2020, and is intended to ensure continuity of social security coverage and administrative certainty during the applicable contribution cycle.
[Notification No. S.O. 2351(E)]
