Status Of ESI Compliance Under The Code On Social Security, 2020: An Analytical Review

India is in the middle of a significant overhaul of its labour laws and at the heart of it is the Code on Social Security, 2020 (‘SS Code’)prescribing for statutory compliances for the welfare of employees. The SS Code seeks to consolidate and modernise India’s social security framework, subsuming key legislations including the Employees’ State Insurance Act, 1948 (‘ESI Act’). Following the notification of the Central Social Security Rules (‘SS Rules’) on 8 May 2026, the implementation of the SS Code has taken a meaningful step forward for companies having operations in more than one State (Governed by the SS Rules).

While the SS Rules have been notified, its provisions, specifically, relating to Employees’ State Insurance (‘ESI’) have not yet been fully operationalised due to the one-year transition period prescribed under the SS Code and absence of enabling notifications, regulations and schemes.