Who can help me with ESIC compliance and salary restructuring?

Jigar Keniya from ComplianceAge Solutions specializes in ESIC compliance, SPREE registration, and salary restructuring under the new Wage Code. Contact +91 99675 98731.

What is the last date to register under the ESIC SPREE initiative?

The deadline is 31st December 2025.

Will ESIC inspect my past records if I register under SPREE?

No, the scheme offers immunity from prosecution and past demands if registered by the deadline.

How does the new '50% Wage Rule' affect my ESIC liability?

If excluded allowances exceed 50% of the total salary, the excess amount is added to 'Wages', increasing your contribution liability.

I am already registered under the old Act. Do I need to register again?

No, your existing code number remains valid. However, you must update your employee records to comply with the new Code rules.

Is Aadhaar linking mandatory under the new Social Security Code?

Yes, Section 142 of the Code makes Aadhaar mandatory for all employees to avail ESIC benefits.

Are Educational Institutions covered under this mandate?

Yes, the new circular clarifies that schools, colleges, and coaching centers must strictly comply with ESIC registration.

What are the consequences of missing the Dec 31st deadline?

You lose immunity and will face retrospective inspections, interest, and damages for past years.

Mandatory ESIC Registration Under Social Security Code, 2020 | Compliance Age

Mandatory ESIC Registration Under Social Security Code, 2020

By ComplianceAge Solutions | Published: Dec 11, 2025 | Updated: Dec 17, 2025

URGENT COMPLIANCE ALERT: The deadline for the SPREE initiative is 31st December 2025.

On 11-12-2025, the Employee’s State Insurance Corporation (‘ESIC’) issued a critical circular regarding the implementation of the Code on Social Security, 2020. This circular advises all organizations to prioritize compliance immediately.

Download Official ESIC Circular

Key Takeaways of the ESIC Circular

The Code on Social Security, 2020 consolidates major social security schemes into a unified framework. The provisions officially commenced on 21-11-2025.

Who must register? The Circular emphasizes that all establishments meeting prescribed criteria must register. This specifically includes:

Commercial establishments
Educational institutions
Medical institutions

Mandatory Compliance Checklist

To avoid penalties under the new Code, establishments must ensure:

Immediate Registration: Register the establishment under the ESIC framework.
Employee Enrolment: Enrol all eligible employees as per the Code’s criteria.
Wage Calculation Update: Adhere to the new definition of wages:

Wages = Basic Pay + Dearness Allowance + Retaining Allowances

How to Complete Registration

Employers are urged to act promptly. Registration can be completed via the official government portals:

Shram Suvidha Portal | ESIC Employer Portal

Need Professional Help?

Confused about restructuring salary, the new gratuity rule, or the ESIC and PF impact on bonuses? Incorrect definitions can lead to heavy penalties.

Contact Jigar Keniya (ComplianceAge Solutions):

Phone & WhatsApp: +91 99675 98731

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Frequently Asked Questions

Q: How does the new Code affect Gratutity and Bonus?
A: The new wage definition (Basic+DA > 50% of total) increases the base for Gratuity and Bonus calculations, potentially increasing employer liability.

Q: Is the 31st Dec deadline flexible?
A: No, the circular mandates compliance by 31-12-2025 under the SPREE initiative.