1.03 Crore New Workers Added to ESIC

Workers added: 1.03 crore (10.3 million) employees registered under ESIC under the SPREE scheme (as of 11 Jan 2026).
Employers added: 1.17 lakh (117,000) unregistered employers brought into the ESIC system.
Scheme: Scheme to Promote Registration of Employers/Employees (SPREE) – a one‑time, penalty‑free window for registration.
EPFO reforms: Withdrawal of up to 75% of PF balance while retaining 25% for retirement; auto‑settlement of claims.
Legal framework:
Employees’ State Insurance Act, 1948 (administers ESI).
Employees’ Provident Fund & Miscellaneous Provisions Act, 1952 (administers PF & pension).

ESIC, a statutory body under the Ministry of Labour & Employment, provides medical care, sickness, maternity, disability and injury benefits to insured workers and their families.
EPFO, another statutory body, manages one of the world’s largest social security funds.
Prior to SPREE, many small‑scale and informal sector employers avoided registration due to fear of retroactive liabilities and penalties.
The SPREE window, announced in early 2026, removed penalties and allowed back‑dated entry without financial burden, encouraging mass enrolment.

Social security expansion: Extends formal protection to a large segment of the informal workforce, aligning with the government’s goal of universal social security.
Fiscal impact: Increased contribution base will bolster ESIC’s fund health, reducing reliance on government subsidies.
Labour market formalisation: Encourages transition from informal to formal employment, aiding data‑driven policy making.
Policy precedent: Demonstrates the effectiveness of one‑time amnesty‑type reforms for large‑scale enrolment, a model that could be replicated for other schemes (e.g., Pradhan Mantri Suraksha Bima).
Health outcomes: Greater coverage can improve occupational health and reduce out‑of‑pocket expenditure for workers.

Article 41 of the Directive Principles of State Policy – the State shall secure a living wage, decent standard of life and social security.
Article 21 – right to health as part of the right to life.
Employees’ State Insurance Act, 1948 – provides the statutory basis for ESI benefits.
Employees’ Provident Fund & Miscellaneous Provisions Act, 1952 – governs PF and pension benefits.