NEW LABOUR CODES - REVISED WAGE DEFINITION - ESI ISSUES A CIRCULAR FOR REVIEW AND COVER EMPLOYEES POST ALIGNMENT OF WAGE

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 FOR URGENT ATTENTION OF EMPLOYERS COVERED UNDER ESIC 

Sub: Re-examining Coverability of your employees under ESIC in light of new definition of 'Wages' as per Code on Social Security,2020. Dear Employer, This is to inform you that the Code on Social Security,2020 has been brought into force with effect from 21 st November,2025 in which the ESI Act 1948 has been subsumed. The definition of "Wages" as per Sec 2(88) of the Code on Social Security, 2020 is different from the erstwhile definition of wages under the (now repealed) ESI Act, 1948(Please see the relevant extract appended below). In view of the new definition, the coverage of your employees (hitherto not coverable under ESIC) needs to be re-examined. It may be possible that employees previously not coverable under ESIC may come under the purview if new definition of "Wages" as per the Social Security Code 2020 is applied. Accordingly, you are requested to examine the coverability of all your employees (now not covered under ESIC) and if any/some employees are founp coverable as per the new definition of "wages", they may be registered immediately and contribution may be deducted and paid in respect of them with immediate effect. Yours faithfully, Digitally signed by Rudradeep Dutta Date: 11-12-2025 REONAL DIRECTOR (I/C)

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