Coverage of Medical & Educational Institutions
ESIC Issues Important Clarification for Educational and Medical Institutions in Maharashtra
The Employees’ State Insurance Corporation (ESIC), Regional Office Mumbai, has issued an important circular dated 27 July 2026, clarifying the applicability of the Code on Social Security, 2020 to Educational Institutions, Medical Institutions, and other eligible establishments in the State of Maharashtra.
The circular provides much-needed clarity following the implementation of the Code on Social Security, 2020, and outlines the responsibility of eligible establishments to comply with ESIC provisions.
For employers operating schools, colleges, hospitals, clinics, diagnostic centres, and similar establishments, understanding this clarification is essential to ensure statutory compliance and avoid future liabilities.
Background
Earlier, ESIC had issued a circular dated 12 February 2026, informing all field offices that implementation of the Government of Maharashtra Notification dated 30 January 2026 had been kept in abeyance until further orders.
Subsequently, ESIC Headquarters, through its communication dated 24 July 2026, clarified that after the implementation of the Code on Social Security, 2020 with effect from 21 November 2025, the coverage of establishments is governed directly by the provisions of the Code.
Accordingly, a separate notification is not required to bring eligible establishments under the ESI Scheme.
Key Highlights of the Circular
- ESIC Circular issued on 27 July 2026.
- Applicable to establishments located in Maharashtra.
- Coverage is governed under Section 1(4) read with the First Schedule of the Code on Social Security, 2020.
- Educational Institutions and Medical Institutions fall within the definition of eligible establishments under the Code, subject to the prescribed statutory conditions.
- Separate State Government notification is not required for coverage.
- Liability to pay ESIC contributions may arise from 21 November 2025, provided the establishment satisfies the statutory conditions under the Code.
- ESIC field offices have been instructed to initiate coverage of all eligible establishments.
Who Should Review This Circular?
This clarification is particularly relevant for employers operating:
- Schools
- Colleges
- Universities
- Coaching & Training Institutes
- Hospitals
- Nursing Homes
- Clinics
- Diagnostic Centres
- Medical Colleges
- Charitable Educational or Medical Institutions
- Healthcare Service Providers
If your establishment falls within the scope of the Code on Social Security, 2020, it is advisable to review your ESIC compliance status without delay.
What Does This Mean for Employers?
Eligible employers should carefully evaluate whether their establishment falls under the provisions of the Code on Social Security, 2020.
Where applicable, employers should:
- Assess whether the establishment is required to obtain ESIC registration.
- Verify employee eligibility under the Code.
- Review employee records and payroll data.
- Ensure statutory contributions are calculated correctly.
- Maintain prescribed records and registers.
- Prepare for any inspection or verification by ESIC authorities.
Timely compliance can help avoid penalties, interest, and future disputes.
Frequently Asked Questions (FAQs)
1. Does this circular automatically cover every educational institution?
No. Coverage depends on whether the establishment satisfies the statutory conditions prescribed under the Code on Social Security, 2020.
2. Does the circular apply outside Maharashtra?
This circular has been issued for establishments in the State of Maharashtra.
3. From which date can ESIC contribution become applicable?
The circular states that contribution liability may arise from 21 November 2025, subject to fulfillment of the statutory conditions under the Code.
4. Is a separate notification from the Maharashtra Government still required?
No. ESIC Headquarters has clarified that, after implementation of the Code on Social Security, 2020, coverage is governed directly by the Code and the First Schedule.
5. What should employers do now?
Employers should review the applicability of ESIC to their establishment, assess their compliance status, and take appropriate action wherever required.
How Shirke Management Services Can Help
At Shirke Management Services, we assist organizations in achieving complete statutory compliance with confidence.
Our ESIC compliance services include:
- ESIC Applicability Assessment
- ESIC Registration Assistance
- Employee Registration & IP Generation
- Monthly Contribution Compliance
- Payroll & ESIC Integration
- ESIC Inspection & Notice Support
- Compliance Audit & Advisory
- Labour Law Compliance Management
Our experienced professionals help organizations identify compliance requirements, minimize risks, and ensure adherence to applicable labour laws.
Need Professional Guidance?
If you are unsure whether your educational institution, hospital, clinic, or other establishment falls under the ESIC provisions, our team is here to assist you.
Contact Shirke Management Services today for an expert assessment of your ESIC compliance obligations and practical guidance tailored to your organization.
