New Definition of Wages under Social Security Code, 2020 – Impact on ESIC Coverage

The Code on Social Security, 2020 has been implemented with effect from 21 November 2025, introducing a new definition of wages applicable for ESIC coverage. Due to this change, many employees who were earlier excluded may now become eligible for ESIC benefits. Employers are advised to review their employee wage structure and ensure compliance by covering all eligible employees under ESIC as per the revised definition.