Mandatory Aadhaar-Based Identification / Authentication under Section 142 of the Code on Social Security, 2020

The Ministry of Labour and Employment, Government of India, vide communication dated 17 May 2026, has advised the Employees’ State Insurance Corporation (ESIC) to implement mandatory Aadhaar-based identification and authentication of beneficiaries under Section 142 of the Code on Social Security, 2020. Key Background The matter was examined by the Ministry of Labor and Employment in consultation with the Legislative Department. It has been clarified that Section 142 of the Code on Social Security, 2020, is self-executory in nature, and therefore, no separate notification is specifically required for its implementation. Accordingly, ESIC has been advised to issue necessary administrative instructions or advisories for the implementation of Aadhaar-based identification/authentication for registration and availing benefits/services under the ESI Scheme. What Section 142 Provides Section 142 of the Code on Social Security, 2020, provides that an employee, unorganized worker, or any other person shall establish their identity, or the identity of their family members/dependents, through an Aadhaar number for: Registration under the Code Seeking benefits Receiving medical attendance Receiving payments under the Code Key Highlights 1. Aadhaar Authentication to Become Mandatory for ESI Benefits ESIC has been advised to implement Aadhaar-based identification/authentication for beneficiaries under the ESI Scheme. 2. No Separate Notification Required The Legislative Department has clarified that no separate notification is required under Section 142, as the provision is self-executory. 3. Implementation Through Administrative Action ESIC may implement the provision through executive or administrative instructions/advisory. 4. Applicable for Registration and Availing Benefits Aadhaar-based authentication may be required for registration as well as for availing medical and cash benefits under the ESI Scheme. 5. Data Privacy and Security to Be Ensured While implementing the same, ESIC has been directed to ensure compliance with the Aadhaar Act, 2016, and related rules/regulations, including data privacy, security, and protection of beneficiary information. 6. Foreign Employees to Be Handled Separately ESIC has also been advised to ensure that provisions relating to foreign employees under Section 142 of the Code are duly followed. LabourCodes360 Note for Employers Employers covered under ESIC should ensure that Aadhaar details of employees and their eligible family members/dependents are correctly updated and authenticated in ESIC records. This may become important for smooth registration, claim processing, medical benefits, and other ESI-related services. Employers should also guide employees to keep their Aadhaar details, mobile number, and family particulars updated to avoid future difficulties in availing ESIC benefits. Conclusion This clarification is an important step towards the digitization and verification of social security benefits under the Code on Social Security, 2020. ESIC is now expected to issue further administrative instructions for implementation of mandatory Aadhaar-based identification/authentication under the ESI Scheme.