
Employees and employers in 24 districts of Madhya Pradesh will come under the Employees' State Insurance Corporation contribution framework from October 1, 2026, the labour and employment ministry has notified. The notification,…
Employees and employers in 24 districts of Madhya Pradesh will come under the Employees' State Insurance Corporation contribution framework from October 1, 2026, the labour and employment ministry has notified. The notification, issued on September 22 under the Code on Social Security 2020, extends ESIC provisions to the entire area of each district, where earlier only parts were covered.

The districts include Agar Malwa, Alirajpur, Anuppur, Ashoknagar, Balaghat, Barwani, Betul, Chhatarpur, Damoh, Datia, Harda, Jhabua, Mandla, Narsinghpur, Panna, Rajgarh, Seoni, Sheopur, Shivpuri, Sidhi, Tikamgarh, Umaria, Vidisha and Dindori. Niwari, earlier classified as non-implemented, is also now included. From October 1, covered establishments must make monthly contributions under Section 29 of the ESI Act.
The move makes employees in these areas eligible for benefits under Chapter IV of the ESI Act, which provides formal healthcare, medical cover and financial protection to low- and middle-income organised-sector workers. Contributions are a fixed percentage of gross monthly wages, shared by employer and employee, into the self-financing scheme administered by the ministry of labour.
The extension brings districts that were either partially covered or entirely outside the ESIC net into the formal social security system. Madhya Pradesh is among states with a large informal workforce, full district coverage means more factories and smaller establishments now fall within the mandatory contribution requirement. The 2020 Code on Social Security had consolidated and streamlined such labour laws, but state-level notification is what triggers implementation. ESIC currently operates in over 600 districts nationally, covering roughly 3.6 crore insured persons and their families. With October 2026 as the effective date, employers in these 25 districts have just over a year to register and begin deductions, or face compliance penalties under the Act. The next milestone will be the ministry's list of exempted establishments, expected in the coming months.
Source: livemint.com
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