Section 5: Constitution of Employees’ State Insurance Corporation
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Section 5 — Governs constitution of employees’ state insurance corporation and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) The Central Government may, by notification, constitute with effect from such date as may be specified therein, the Employees' State Insurance Corporation to be called the Corporation, for the purposes of Chapter IV and…
The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- (1) The Central Government may, by notification, constitute with effect from such date as may be specified therein, the Employees' State Insurance Corporation to be called the Corporation, for the purposes of Chapter IV and the provisions of this Code relating to that Chapter and the administration thereof, in such manner as may be prescribed by the Central Government, consisting of the following members,…
- (d) one person representing each of such States in such manner, as may be prescribed by the Central Government;
- (f) ten persons representing employers to be appointed by the Central Government in consultation with such organisations of employers as may be recognised for the purpose by the Central Government;
- (g) ten persons representing employees to be appointed by the Central Government in consultation with such organisations of employees as may be recognised for the purpose by the Central Government;
- (h) two persons representing the medical profession to be appointed by the Central Government in consultation with such organisations of medical practitioners as may be recognised for the purpose by the Central Government;
Provisos, explanations & qualifications
- Provided that a member of the Corporation shall, notwithstanding the expiry of the tenure of his office, continue to hold office until his successor is appointed.
Thresholds and timelines in the text
- No explicit day/month/year/hour/percentage/rupee expression was detected in this section text.
Actors expressly appearing in the text
Employer, Employee / worker, Central Government, Corporation / EPFO / Board
Full statutory text — Section 5
5. Constitution of Employees’ State Insurance Corporation.— (1) The Central Government may, by
notification, constitute with effect from such date as may be specified therein, the Employees' State
Insurance Corporation to be called the Corporation, for the purposes of Chapter IV and the provisions of
this Code relating to that Chapter and the administration thereof, in such manner as may be prescribed by
the Central Government, consisting of the following members, namely:—
(a) a Chairperson to be appointed by the Central Government;
(b) a Vice-Chairperson to be appointed by the Central Government;
(c) not more than five persons to be appointed by the Central Government from amongst its officials;
(d) one person representing each of such States in such manner, as may be prescribed by the Central
Government;
(e) one person to be appointed by the Central Government to represent the Union territories;
(f) ten persons representing employers to be appointed by the Central Government in consultation
with such organisations of employers as may be recognised for the purpose by the Central Government;
(g) ten persons representing employees to be appointed by the Central Government in consultation
with such organisations of employees as may be recognised for the purpose by the Central Government;
(h) two persons representing the medical profession to be appointed by the Central Government in
consultation with such organisations of medical practitioners as may be recognised for the purpose by
the Central Government;
(i) three members of Parliament of whom two shall be members of the House of the People (Lok
Sabha) and one shall be a member of the Council of States (Rajya Sabha) elected respectively by the
members of the House of the People and the members of the Council of States; and
(j) the Director General of the Corporation, ex officio.
(2) The Corporation shall be a body corporate by the name of Employees' State Insurance Corporation,
having perpetual succession and a common seal and shall by the said name sue and be sued.
(3) The Central Government may, by notification, constitute, with effect from such date as may be
specified therein, a Standing Committee from amongst the members of the Corporation, in such manner
as may be prescribed by the Central Government.
(4) Subject to the general superintendence and control of the Corporation, the Standing Committee—
(a) shall administer the affairs of the Corporation and may exercise any of the powers and perform
any of the functions of the Corporation in such manner as may be prescribed by the Central Government;
(b) shall submit for the consideration and decision of the Corporation all such cases and matters as
may be specified in the regulations made in this behalf; and
(c) may, in its discretion, submit any other case or matter for the decision of the Corporation.
(5) (a) The Central Government may, by notification, constitute, with effect from such date as may be
specified therein, a Medical Benefit Committee of such composition as may be specified therein, to assist
the Corporation and the Standing Committee in performance of its functions relating to administration of
medical benefits.
(b) the Medical Benefit Committee shall perform such duties and exercise such powers as may be
prescribed by the Central Government.
(6) The Corporation may, by order, constitute one or more committees of such composition as may be
specified in the regulations to assist it in the discharge of its functions.
(7) The terms and conditions, including tenure of office, subject to which a member of the Corporation
and Standing Committee shall discharge their respective duties may be such as may be prescribed by the
Central Government:
Provided that a member of the Corporation shall, notwithstanding the expiry of the tenure of his office,
continue to hold office until his successor is appointed.How to apply this provision
- Primary statutory test — (1) The Central Government may, by notification, constitute with effect from such date as may be specified therein, the Employees' State Insurance Corporation to be called the Corporation, for the purposes of Chapter IV and the provisions of this Code relating to that Chapter and the administration thereof, in such manner as may be prescribed by the Central Government, consisting of the following members,…
- Additional operative limb — (d) one person representing each of such States in such manner, as may be prescribed by the Central Government;
- Qualification / exception to test — Provided that a member of the Corporation shall, notwithstanding the expiry of the tenure of his office, continue to hold office until his successor is appointed.
- Central Rule mapping — 8, 11, 12. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
- Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker, Central Government, Corporation / EPFO / Board.
Rules, forms and cross-references
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
For a worker/member seeking a benefit connected with constitution of employees’ state insurance corporation, the file should show coverage, service/contribution facts, the rule/scheme and prescribed form, and the calculation/payment. One statutory point to test is: “(1) The Central Government may, by notification, constitute with effect from such date as may be specified therein, the Employees' State Insurance Corporation to be called the Corporation, for the purposes of Chapter IV and the provisions of this Code relating to that Chapter and” Also test the express qualification/proviso before concluding the result. Read the mapped Central Rule(s) 8, 11, 12.
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 5
What does Section 5 of the Social Security Code cover?
Section 5 — Governs constitution of employees’ state insurance corporation and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) The Central Government may, by notification, constitute with effect from such date as may be specified therein, the Employees' State Insurance Corporation to be called the Corporation, for the purposes of Chapter IV and…
What is the main legal requirement or power in Section 5?
The first operative clause identified from the official text is: “(1) The Central Government may, by notification, constitute with effect from such date as may be specified therein, the Employees' State Insurance Corporation to be called the Corporation, for the purposes of Chapter IV and the provisions of this Code relating to that Chapter and the administration thereof, in such manner as may be prescribed by the Central Government, consisting of the following members,…” Read it with the remaining subsections and any proviso below.
Does Section 5 contain a proviso or explanation?
Yes. A qualification extracted from the official text is: “Provided that a member of the Corporation shall, notwithstanding the expiry of the tenure of his office, continue to hold office until his successor is appointed.”
What time limit, percentage or amount appears in Section 5?
No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.
Which 2026 Central Rules are linked to Section 5?
The current concordance maps Section 5 to Central Rule(s) 8, 11, 12.
Is Section 5 currently operative?
The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.
Source & verification trail
Act: Code on Social Security, 2020 — official India Code PDF ↗
Central Rules: Social Security (Central) Rules, 2026 — G.S.R. 344(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.