The Employees’ State Insurance Corporation (ESIC) has issued a formal notification announcing the implementation of the Code on Social Security, 2020 (CoSS 2020), following the Ministry of Labour & Employment’s Gazette Notification No. 5143 dated 21 November 2025. With this, the long-anticipated Social Security Code comes into effect from the same date, officially replacing the repealed Employees’ State Insurance Act of 1948.
The new Code introduces significant updates to the definitions of “dependant” and “family,” which directly impact eligibility for key ESIC benefits such as Dependent Benefit and Medical Benefit.
Expanded Definition of “Dependant” Under CoSS 2020
Under Section 2(24)(c) of the Social Security Code, the scope of who qualifies as a “dependant” has been broadened.
The following categories are now newly included:
- Widower
- Grandparents
With their inclusion, these individuals can now be considered eligible for Dependent Benefit where applicable under ESIC coverage.
This marks an important shift from the earlier definition under the repealed ESI Act, 1948.
Revised Definition of “Family” Expands Medical Benefit Eligibility
The Code on Social Security, 2020 also revises the definition of “family” under Section 2(33)(e). Notably, for women employees, the following members are now included:
- Father-in-law
- Mother-in-law
This inclusion makes them eligible for Medical Benefit under ESIC, ensuring broader health coverage for extended family members living dependently with or supported by the insured woman employee.
ESIC Directs Field Units to Apply Updated Definitions Immediately
ESIC has instructed all field offices, regional centres, and benefit-processing authorities to strictly apply the revised definitions when determining eligibility for social security benefits.
The organization emphasized that the updated classifications must be “duly considered while extending relevant benefits to eligible persons.”
This directive has been issued with the approval of the Director General, ESIC, underscoring its immediate operational importance.
Significance of the Implementation
The enforcement of the Social Security Code marks a major reform in India’s labour and welfare landscape. The expanded definitions:
- Strengthen social protection for widowers, grandparents, and in-laws
- Offer enhanced medical and financial security for families
- Reflect a more inclusive and progressive understanding of dependants
- Align ESIC benefit frameworks with modern socio-economic realities
With the implementation of CoSS 2020, ESIC beneficiaries can expect wider coverage, smoother administration, and a unified approach to social security.