ESIC Registration Now Compulsory Under Code on Social Security, 2020: What Every Establishment Must Do
The Code on Social Security, 2020 has been formally brought into force across India with effect from 21 November 2025, fundamentally reshaping the social security landscape for employees. With this rollout, registration under the Employees’ State Insurance Corporation (ESIC) is no longer optional for eligible units — it is a statutory requirement for all establishments that fall within the prescribed coverage norms, including educational institutions, medical establishments, and other organizations.
Two key communications issued by the Employees’ State Insurance Corporation highlight:
- The mandatory nature of ESIC registration under the Code on Social Security, 2020;
- The impact of the revised definition of “wages” under
Section 2(88)of the Code; and - The need for immediate compliance, particularly in light of the approaching SPREE deadline of 31 December 2025.
This article reorganizes and explains the substance of those official communications in a structured, practitioner-friendly manner for employers, HR professionals, and compliance officers.
1. Nationwide Implementation of Code on Social Security, 2020
1.1 Effective Date and Scope
The Government of India has implemented the Code on Social Security, 2020 (hereafter, “the Code”) with nationwide applicability from 21 November 2025. This Code is designed to:
- Consolidate and rationalize multiple existing social security legislations;
- Extend medical, financial, and other social security benefits to employees; and
- Apply uniformly to all employees engaged in any establishment, including those in the education and healthcare sectors.
The Code replaces a fragmented regime with a unified social security framework, under which ESIC plays a central role in providing contributory social insurance coverage.
1.2 ESIC’s Role Under the New Regime
Under the Code, ESIC remains the primary mechanism for providing:
- Medical care;
- Sickness benefits;
- Maternity benefits;
- Disablement and dependants’ benefits; and
- Other statutory entitlements linked to employment injuries and contingencies.
Accordingly, establishments satisfying the coverage criteria specified under the Code are now obligated to come under the ESIC fold, and ensure that all eligible employees are duly registered and contributions are remitted on time.
2. Mandatory ESIC Registration for Eligible Establishments
2.1 Compulsory Employer Registration
Following the notification of the Code, all establishments that meet the prescribed coverage thresholds must:
- Register themselves as an “establishment” with ESIC under the framework of the Code on Social Security, 2020;
- Obtain ESIC employer registration through notified electronic portals; and
- Treat ESIC registration as a statutory pre-condition for lawful operations wherever the Code mandates ESIC coverage.
The obligation is not confined to factories or traditional industrial units. It explicitly extends to:
- Educational institutions (schools, colleges, training institutes, universities);
- Hospitals, clinics, and other medical establishments;
- Commercial and service sector entities; and
- Any other notified establishments that trigger ESIC coverage under the Code.
2.2 Employee Registration Under ESIC
Once an establishment is covered and registered:
- Every eligible employee (as per the ESIC coverage conditions under the Code) working in or through that establishment must be enrolled under the ESIC Scheme;
- This includes not only regular staff but also contractual workers, and any other coverable but not yet covered employees engaged within the premises or through contractors.
Important: The communications issued by ESIC specifically instruct employers to register all coverable employees, including contractual personnel, to ensure that no eligible individual is left outside the ESIC safety net.