The Employees State Insurance Corporation (ESIC) under the Code on Social Security, 2020 (“Code”) represents a significant step in India’s labour welfare framework. The Code consolidates multiple social security laws into a unified system with the objective of extending social protection to all categories of workers, including those in the unorganised, gig, and platform sectors. Within this broader framework, ESIC continues to function as an important institution providing health insurance and income security through benefits such as medical care, sickness, maternity, disablement, and dependants’ support. The Code not only retains the foundational structure of the earlier scheme but also expands its coverage, digitises compliance, and enables the Government to extend benefits to a wider workforce.

Who appoints the principal officers of the Corporation?

The Central Government appoints a Director General and a Financial Commissioner, who act as the principal officers of the Corporation.

What is the tenure of the Director General and Financial Commissioner?

They hold office for a period specified in their appointment order, not exceeding five years.

Are they eligible for re-appointment?

Yes, they are eligible for re-appointment if otherwise qualified.

What remuneration do they receive?

They receive salary and allowances as prescribed by the Central Government.

What are their powers and functions?

They exercise powers and discharge duties as prescribed by the Central Government and perform functions specified in regulations.

Who is disqualified from being appointed to these posts?

Any person subject to the specified disqualifications applicable under the law cannot be appointed.

Can they be removed from office?

Yes, the Central Government may remove them at any time and must do so if a two-thirds majority resolution of the Corporation recommends removal.

Can the Corporation appoint other staff?

Yes, it may employ officers and employees necessary for efficient functioning and responsibilities assigned by the Central Government.

Is approval required for creating high-salary posts?

Yes, prior sanction of the Central Government is required if the salary exceeds a prescribed limit.

How are service conditions determined?

Through regulations aligned with rules applicable to Central Government employees in similar pay scales.

What about specialists and........

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