Maharashtra has extended Employees' State Insurance (ESI) Act coverage to educational and medical institutions with 10 or more employees, effective from 21 November 2025 under the Social Security Code, 2020, formally notified on 30 January 2026. If you run a private school, hospital, clinic, or diagnostic centre in the state with 10 or more staff, this compliance obligation now applies to you, whether or not you've previously dealt with ESI.
Which institutions does this cover?
Public, private, aided, and partially aided educational institutions, run by individuals, trustees, societies, or other organisations, with 10 or more employees in the preceding 12 months. It also covers corporate, joint sector, trust, charitable, and privately owned hospitals, nursing homes, diagnostic centres, and pathological laboratories meeting the same employee threshold.
When does coverage actually start?
ESIC has clarified that coverage in Maharashtra applies from 21 November 2025 under the Social Security Code, 2020, even though the state's formal notification came later, on 30 January 2026. Institutions that should have registered from that earlier date but haven't may be facing a compliance gap already.
What do I need to do as an employer?
Register your establishment with ESIC if you meet the 10-employee threshold, register your eligible employees, and begin remitting both the employer and employee ESI contributions on time. If your institution hasn't previously dealt with ESI compliance, get your payroll and HR processes reviewed promptly, since delayed registration typically attracts penalties. Getting employment terms and termination procedures right matters just as much; see our guide on remedies for illegal termination and unpaid notice pay for the compliance side employers most often get wrong.
Does this apply outside Maharashtra?
This specific 2026 notification covers Maharashtra. ESI Act extensions to new categories of establishments are generally rolled out state by state through separate notifications, so if you operate in another state, confirm the current position there directly rather than assuming the same rule applies uniformly.
Disclaimer: This article is for general information only and is not legal advice. Confirm the current position for your state and institution with a qualified advocate.
Frequently asked questions
Are private schools now covered under the ESI Act?
In Maharashtra, yes. The state government issued a notification on 30 January 2026 extending the Employees' State Insurance Act, 1948 to educational and medical institutions with 10 or more employees in the preceding 12 months, covering public, private, aided and partially aided institutions run by individuals, trustees, societies, or other organisations.
Does this cover hospitals and clinics too?
Yes. The notification also covers corporate, joint sector, trust, charitable, and privately owned hospitals, nursing homes, diagnostic centres, and pathological laboratories with 10 or more employees.
From when does this coverage actually apply?
ESIC has clarified that educational and medical institutions in Maharashtra are covered under the ESI Scheme from 21 November 2025, under the Social Security Code, 2020, even though the formal state notification followed in January 2026.
What does an employer need to do to comply?
Register the establishment with ESIC if it crosses the 10-employee threshold, register eligible employees, and begin remitting the employer and employee ESI contributions on time. Institutions that haven't previously dealt with ESI compliance should get their payroll and HR processes assessed promptly to avoid penalties for delayed registration.
Is this change limited to Maharashtra?
The 2026 notification specifically covers Maharashtra. ESI Act extensions to new categories of establishments are typically rolled out state by state through separate notifications, so employers in other states should confirm the current position for their own state rather than assuming the same rule applies uniformly nationwide.