In a significant move to streamline social security delivery, the Ministry of Labour and Employment, Government of India, has directed the Employees’ State Insurance Corporation (ESIC) to implement mandatory Aadhaar-based identification and authentication for all beneficiaries under the Code on Social Security, 2020.

The directive, issued vide F. No. S-38013/04/2021-SS-I dated 17th May 2026, invokes Section 142 of the Code on Social Security, 2020, which empowers authorities to require an employee, unorganised worker, or any other person to establish their identity (and that of their family members/dependents) through Aadhaar number for registration, seeking benefits, receiving medical attendance, or payments under the Code.

Key Highlights of the Notification:

  1. Self-Executory Provision: The Ministry confirmed, based on consultation with the Legislative Department, that no separate notification is required under Section 142. The Legal Consultant of the Ministry opined that the section is self-executory in nature and may be implemented through executive/administrative action, given the overriding effect of the Code.
  2. Action Required from ESIC: ESIC has been advised to issue necessary administrative instructions / advisory for implementing mandatory Aadhaar-based identification/authentication for registration and availing benefits/services under the ESI Scheme.
  3. Compliance with Aadhaar Act, 2016: The Ministry explicitly directed ESIC to ensure compliance with the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, including all rules and regulations relating to:
    • Data privacy
    • Data security
    • Protection of beneficiary information
  4. Foreign Employees: The notification also mandates adherence to provisions relating to foreign employees as provided under Section 142 of the Code on Social Security, 2020.

Background: The notification references ESIC’s earlier communication (No. P-14015/3/2022-BFT-II-Part(1) dated 05.12.2025) and resolves the legal ambiguity by declaring Section 142 as directly enforceable without a separate gazette notification.

Significance for Beneficiaries: This order paves the way for mandatory linking of Aadhaar with ESIC records for all insured persons (IPs) and their dependents. It will affect registration for ESI benefits, medical attendance, and all payments (e.g., sickness, disablement, dependent, maternity benefits). Employers and employees covered under the ESI Act should prepare for forthcoming administrative instructions from ESIC Headquarters.

Way Forward: ESIC is expected to issue detailed operational guidelines shortly, including modalities for Aadhaar authentication, data handling protocols, and exemptions, if any, for foreign employees or those without Aadhaar (subject to existing provisions of the Aadhaar Act).

Disclaimer: This news post is based on the official Government of India notification F. No. S-38013/04/2021-SS-I dated 17th May 2026, issued by the Ministry of Labour and Employment. The content is provided for informational and awareness purposes only and does not constitute legal advice or professional opinion. While every effort has been made to accurately represent the notification, readers are strongly advised to refer to the original government notification and consult with qualified legal or regulatory experts before taking any action based on this information. The publisher assumes no responsibility or liability for any errors, omissions, or discrepancies, or for any consequences arising from the use of this information. Government policies, notifications, and implementation timelines are subject to change or clarification by competent authorities. This post does not create any lawyer-client or advisory relationship.