Lok Sabha Question No. 2596 (UNSTARRED), answered on 2026-03-09
Subject: ESIC or Statutory Insurance to Contract Workers
Ministry: LABOUR AND EMPLOYMENT
Asked by: Shri Dulu Mahato

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA UNSTARRED QUESTION NO. 2596 TO BE ANSWERED ON 09.03.2026

## ESIC OR STATUTORY INSURANCE TO CONTRACT WORKERS

2596. SHRI DULU MAHATO:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)whether the Government is aware that contract workers engaged in hazardous industrial tasks perform duties similar to permanent employees but remain deprived of equivalent medical benefits and if so, the details thereof;
- (b)the details of action taken by the Government to bridge this gap in medical coverage across industrial sectors;
- (c)the  details  of  the  reasons  for  the  disparity  in  health  coverage between permanent and contractual workers in industrial units;
- (d)whether  the  Government  proposes  to  extend  ESIC  or  statutory insurance to contractual workers exceeding current wage ceilings
- or introducing mandatory group insurance for parity; and
- (e)the  details  of  policy  amendments  under  the  Code  on  Social Security to ensure health security for contract labour at par with permanent employees?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SUSHRI SHOBHA KARANDLAJE)

(a) to (e): Under the erstwhile Employees' State Insurance Act, 1948 and now under Chapter IV of the Code on Social Security, 2020 (CoSS) effective  from  21.11.2025,  employees,  including  contract  workers, employed  in  or  in  connection  with  the  work  of  a  factory  or establishment  (other  than  seasonal  factories)  having  ten  or  more employees and drawing monthly wages up to the prescribed limit of Rs. 21000/- are required to be covered under the ESI Scheme. Further, the CoSS, 2020 also extends ESI coverage to even a single employee, working  in  a  notified  hazardous  or  life-threatening  occupation, provided his monthly wage does not exceed the prescribed limit of Rs. 21,000/-.

The responsibility to ensure coverage of contract workers rests  with  the  principal  employer,  irrespective  of  whether  such workers are engaged directly or through a contractor.

There is no distinction between permanent and contract workers under the Code with regard to eligibility for medical benefits under  ESIC.  Accordingly,  no  disparity  exists  in  statutory  health coverage  between  permanent  and  contract  employees  who  fall within the ambit of the Scheme. Instances of non-compliance, if any, are  addressed  through  surveys,  inspections  and  complaint-based inspections by the competent authorities.

To  strengthen  medical  access,  ESIC,  besides  its  own of Understating with the National Health Authority (NHA) to enable ESI beneficiaries to avail treatment at PM-JAY empanelled hospitals in emergencies and referred cases. ESIC also utilises State Government health infrastructure, has entered into a Memorandum health facilities to expand access to healthcare services.

The existing statutory framework provides for contributory  social  security  through  ESIC  and  does  not  mandate compulsory  group  insurance  through  private  insurers.  At  present, there  is  no  proposal  to  introduce  mandatory  group  insurance,  and health security for eligible contract labour is at par with permanent employees under the provisions of the Code.

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