The Ministry of Labour and Employment, Government of India has issued a notification dated 30 April 2026 under the Code on Social Security, 2020 (No. 36 of 2020). The notification appoints 1 May 2026 as the date from which establishments located in the Andrott, Amini, Kadmat, Kalpeni, Chetlat, and Kiltan islands of the Union Territory of Lakshadweep will be covered under the Employees’ State Insurance Corporation (ESIC). Employers and employees in these areas will be required to make contributions under Section 29, and employees will be entitled to benefits under Chapter IV of the Code.

Key Highlights of the Notification

  • Applicability:
    • All establishments in Andrott, Amini, Kadmat, Kalpeni, Chetlat, and Kiltan islands of Lakshadweep.
  • Effective Date:
    • Coverage begins 1 May 2026.
  • Contributions:
    • Employers and employees must pay contributions under Section 29 of the Code on Social Security, 2020.
  • Benefits:
    • Employees will receive benefits under Chapter IV, administered by the Employees’ State Insurance Corporation (ESIC).
  • Legal Basis:
    • Notification issued under the third proviso to the First Schedule of the Code on Social Security, 2020.

Impact on Employers and Employees

  • For Employers: Establishments in the notified Lakshadweep islands must register with ESIC and ensure timely payment of contributions. Compliance systems must be updated to align with statutory requirements.
  • For Employees: Workers gain access to ESIC benefits including medical care, sickness benefits, maternity benefits, and other social security protections under Chapter IV of the Code.
  • For HR/Compliance Teams: Immediate steps are required to integrate ESIC compliance into payroll and HR systems for establishments in the notified islands.

For detailed reading of this notification and to access all other important updates, please visit the Notifications tab on our website.

Disclaimer: This news post is for informational purposes only. It does not constitute legal advice. Readers are advised to consult the official gazette notification issued by the Ministry of Labour and Employment or seek professional legal counsel before taking any compliance-related action.