ESI Act Extension Proposed for Educational and Healthcare Sectors in Maharashtra (public, private, aided or partially aided institutions run by individuals, trustees, societies or other organizations)


📜 Maharashtra Government Gazette Update: ESI Act Provisions Extended to Educational & Medical Institutions

Date: July 29, 2025
Published by: Government of Maharashtra, Public Health Department
Gazette Notification No.: PHD-12016/3/2025-PHD (R.K.V.2)
Effective Date of Proposed Change: August 28, 2025

✦ "Satyamev Jayate – Truth Alone Triumphs"

The Maharashtra Government, through an extraordinary notification published in its official Gazette, has proposed a significant extension of the Employees’ State Insurance Act, 1948 (ESI Act). This new draft notification brings certain categories of institutions under the ambit of the ESI Act, expanding social security coverage to more workers in the state.

🔍 What’s the New Proposal?

The state government has proposed to extend the provisions of the ESI Act to:

  1. Educational Institutions
    Including public, private, aided, or partially aided institutions run by individuals, trusts, societies, or other organizations.

  2. Medical Institutions
    Including hospitals, nursing homes, diagnostic centers, pathological labs, etc., operated by corporations, joint ventures, trusts, charitable organizations, or private ownership.

These institutions will now fall under the ESI Act if they employed 10 or more persons at any time during the past 12 months, and are located in areas where the Act has already been made applicable under Section 1(3) of the ESI Act.

🧾 What Does This Mean?

The Employee State Insurance (ESI) Act provides health insurance and social security benefits to employees in India. Bringing educational and medical institutions under its scope means that:

  • Employees in these sectors will receive benefits like medical care, maternity leave, disability support, and unemployment insurance.

  • Employers will be required to make ESI contributions for eligible employees.

  • Institutions will need to ensure compliance or raise objections (if any) before the implementation.

📅 Timeline for Action

  • The effective date of this inclusion is August 28, 2025.

  • Objections or suggestions regarding this draft can be submitted to the Public Health Department before this date.

📫 Where to Send Suggestions or Objections?

Anyone likely to be affected by this change may send their inputs to:

Secretary (2), Public Health Department,
Government of Maharashtra,
10th Floor, G. T. Hospital Administrative Building,
Lokmanya Tilak Marg, Mumbai 400001

🖋️ Final Note

This is a crucial move towards the universalization of employee welfare across all organized sectors in Maharashtra. Institutions and stakeholders must take note of this update, understand its implications, and prepare accordingly before the final implementation.

Issued by Order and in the Name of the Governor of Maharashtra
Chandrakant Vibhute
Deputy Secretary, Government of Maharashtra


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