Aadhaar 'not must' for ESIC claims, benefits continue under new rules

Labour Ministry notification clarifies workers availing of the social security scheme will continue to get benefits

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The Employees’ State Insurance Corporation (ESIC) has said that Aadhaar authentication is not mandatory for workers to avail of benefits under the Employees’ State Insurance (ESI) scheme. A notification by the Labour Ministry said no beneficiary will be denied health care or cash benefits for not completing Aadhaar verification.

 

What is ESI Scheme? 

 

The ESI scheme primarily covers organised sector employees earning up to Rs 21,000 a month, providing them and their families with medical care, maternity benefits, and income support during illness or job loss.”

 

Aadhaar authentication

 

The ministry issued the notification on August 18 after ESIC said it is allowed to use Aadhaar-based authentication to verify the identity of beneficiaries for transparency, record-keeping and strengthening the delivery of social security benefits.

 

However, the ministry underlined that the authentication is to remain optional. ESI members unwilling or unable to authenticate their Aadhaar number can provide other government-issued identity documents such as:

 

• Passport 
• PAN card 
• Driving licence

 

Further, ESIC will be required to obtain explicit consent from beneficiaries before conducting Aadhaar verification.

 

Why Aadhaar authentication matters

 

Linking Aadhaar to ESI services is expected to:

 

• Reduce paperwork and the need for multiple identity documents 
• Speed up access to health and cash benefits 
• Prevent leakages and duplication of claims 
• Ensure better governance of the scheme

 

At the same time, the assurance that services will not be withheld without Aadhaar addresses concerns about exclusion of informal and vulnerable workers.

 

New schemes to widen coverage

Alongside the Aadhaar clarification, ESIC has also announced fresh initiatives to expand the scheme’s reach.

 

SPREE 2025 (Scheme for Promotion of Registration of Employers and Employees): Running from July 1 to December 31, the scheme aims to bring uncovered employers and workers into the ESI fold. Registration through the ESIC and Shram Suvidha portals will be digital, with no retrospective contributions or inspections for the pre-registration period.

 

Amnesty Scheme 2025: To be rolled out between 1 October 2025 and 30 September 2026, the one-time dispute resolution window will help employers settle pending issues under the ESI Act, 1948, and reduce litigation.