Introduction
The Code on Social Security, 2020 is no longer just a policy on paper; it’s now the law of the land. Effective 21 November 2025, this landmark legislation has reshaped how establishments across India must approach employee welfare, especially under the Employees’ State Insurance Corporation (ESIC).
But what does this mean for your organization? Whether you run a hospital, school, factory, or startup, the new code demands immediate action. Are your employees covered? Is your wage structure compliant? Have you registered on time?
What Changed Under the Code?
Nationwide Implementation
The Code consolidates multiple social security laws and mandates medical and financial benefits for employees across sectors.
Mandatory ESIC Registration
All establishments meeting the criteria under the Code must register with ESIC. This includes educational and medical institutions, which were previously excluded in many cases.
New Wage Definition
Section 2(88) of the Code redefines “wages” to include:
- Basic Pay
- Dearness Allowance (DA)
- Retaining Allowance (if any)
Excluded components:
- Bonus
- HRA
- Conveyance Allowance
- Overtime
- Gratuity
- Employer PF/ESIC contributions
- Commission
- Retirement benefits
- Court-awarded settlements
Note: If excluded components exceed 50% of total remuneration, the excess will be added back to wages for ESIC coverage.
What Employers Must Do Now
- Register your establishment under ESIC via the Shram Suvidha Portal https://shramsuvidha.gov.in/home or ESIC Employer Portal https://esic.gov.in/
- Enroll all eligible employees, including contractual staff.
- Ensure timely payment of contributions to avoid penalties and ensure uninterrupted benefits.
- Review your wage structure to align with the new definition and avoid undercoverage.
A Relatable Example
Imagine a mid-sized school in Mumbai with 40 teaching and non-teaching staff. Under the old regime, they weren’t covered by ESIC. But now, with the new wage definition and expanded scope, they must register and ensure every eligible employee receives medical benefits.
What happens if they don’t? Employees may lose access to ESIC hospitals, maternity benefits, and sickness coverage while the institution risks penalties and legal scrutiny.
SPREE Deadline Extended: Now Till 31 January 2026
The ESIC’s special compliance drive SPREE has been extended till 31 January 2026. This gives establishments a final window to register coverable employees including contractual staff without procedural hurdles.
Don’t wait till the last week. Early registration ensures smoother onboarding and uninterrupted benefits for your workforce.
Legal Backing
These directives are backed by Gazette Notification No. R-11011/04/2021-SS.II dated 21.11.2025 and issued with approval from the Joint Director, ESIC Sub-Regional Office, Marol, Mumbai.
Final Takeaway
Would you wait until an employee falls sick to realize your ESIC registration is pending?
Wouldn’t it be better to act now and ensure your team is protected?
The Code on Social Security, 2020 isn’t just a compliance checkbox; it’s a commitment to employee welfare. By registering under ESIC and aligning with the new wage norms, you’re not just following the law; you’re building trust.
So, don’t wait. Act now. Register today. Protect your people.
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Disclaimer – This blog post is a general guide. It should not be considered legal advice. Consult a legal professional for more details.