The Employees’ State Insurance Corporation (ESIC) has clarified that Aadhaar authentication is not mandatory for workers to avail themselves of benefits under the Employees’ State Insurance (ESI) scheme.
A notification issued by the Ministry of Labour on August 18 confirmed that no beneficiary will be denied healthcare or cash benefits for not completing Aadhaar verification.
What is the ESI Scheme?
The ESI scheme covers organised sector employees earning up to Rs 21,000 per month, providing them and their families with:
Medical care
Maternity benefits
Income support during illness or job loss
Aadhaar Authentication – Optional, Not Compulsory
While ESIC is permitted to use Aadhaar-based verification to improve transparency, record-keeping, and delivery of benefits, the ministry emphasised that Aadhaar remains optional.
Beneficiaries unwilling or unable to use Aadhaar can submit other government-issued IDs such as a passport, PAN card, or driving licence. Additionally, ESIC must obtain explicit consent before conducting Aadhaar verification.
Why Aadhaar Linking Helps
According to the ministry, Aadhaar authentication can:
Reduce paperwork and multiple ID requirements
Speed up benefit delivery
Prevent duplication and leakages
Strengthen governance of the scheme
However, the assurance that services will not be withheld without Aadhaar addresses concerns of exclusion among vulnerable workers.
New Schemes to Widen Coverage
Alongside this clarification, ESIC announced two new initiatives:
SPREE 2025 (Scheme for Promotion of Registration of Employers and Employees):
Duration: July 1 to December 31, 2025
Aim: To bring unregistered employers and workers under ESI coverage.
Registration will be fully digital via ESIC and Shram Suvidha portals.
No retrospective contributions or inspections for the pre-registration period.
Amnesty Scheme 2025:
Duration: October 1, 2025 to September 30, 2026
Purpose: A one-time dispute resolution window to help employers settle pending issues under the ESI Act, 1948, and reduce litigation.
