- Why in news
- On 30 June 2026, the 198th ESIC meeting at New Delhi, chaired by Labour Minister Mansukh Mandaviya, decided that ESIC will directly run all new ESI hospitals. It also extended the Atal Beemit Vyakti Kalyan Yojana by one year.
- What it is
- The Employees' State Insurance Corporation is the body that runs the ESI scheme for workers, giving medical care and cash benefits for sickness, maternity, injury and disability. It was set up under the Employees' State Insurance Act, 1948. Its rules are now being framed under the Code on Social Security, 2020.
- Direct management of hospitals
- All upcoming and newly commissioned ESI hospitals will be run directly by ESIC. Hospitals now with States and under reconstruction stay with States unless the State opts to hand them over.
- New General Regulations
- ESIC approved framing the ESI (General) Regulations, 2026 under the Code on Social Security, 2020. They revise the 1950 Regulations.
- Atal Beemit Vyakti Kalyan Yojana
- This unemployment allowance scheme for Insured Persons is extended for one year, from 1 July 2026 to 30 June 2027.
- Ayush integration
- An MoU with the Ministry of Ayush will create a joint framework to integrate Ayush services into ESIC healthcare.
- Statutory basis
- ESIC is a statutory body created by the ESI Act, 1948. The Union Labour Minister chairs the Corporation.
Don’t confuse with ESIC vs EPFO: ESIC gives health and cash benefits to insured workers. EPFO manages provident fund, pension and insurance savings. Both come under the Labour Ministry.
Don’t confuse with ESI Act, 1948 vs Code on Social Security, 2020: The ESI Act was the original law. Its provisions are now subsumed under the Code, which came into effect on 21 November 2025.
Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.
Why it matters
- Direct ESIC management of new hospitals can give uniform standards of care to insured workers.
- Occupational Disease Centres and cancer care widen specialised health cover for industrial workers.
Problems
- Split control between ESIC and State-run hospitals may leave uneven service quality.
- Staffing and funding for new hospitals, colleges and offices is a strain.
Way forward
- Move State hospitals to ESIC in phases, with States' consent and clear staffing terms.
- Track service quality and coverage through published outcome data.
Put in your answer
Code on Social Security, 2020: Social security law now in effect, under which ESIC is framing fresh regulations.
ABVKY example: An unemployment allowance for insured workers, extended to 30 June 2027, shows a safety net for job loss.
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UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Statutory body on social security; meeting decisions are administrative, so a card suffices. Statutory body questions are only 7 in news-linked Prelims.
Worth revising until Prelims 2028: most news questions come within two years of the event.