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Code on Social Security, 2020 · 2

Section 5: Constitution of Employees’ State Insurance Corporation

Reviewed by Finin2min Editorial Desk · Last Reviewed 12 September 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…

Full official textSource checked: 20 August 20263 direct Central Rule link(s)

2-minute answer

Section 5: Constitution of Employees’ State Insurance Corporation explained with current labour-code/scheme context, eligibility or compliance steps, records to retain.

Current-law check: Reviewed for source/currentness on 12 September 2026. Re-check any later notification, circular, amendment, rate, deadline or portal instruction before acting.

How to use this page

Section 5: Constitution of Employees’ State Insurance Corporation should be read with the operative Code/Scheme/Rules and the establishment or employee facts to which it applies. Coverage, wage base, service history, State overlay and commencement date can change the outcome.

Practical checklist

Confirm coverage of the establishment and employee/member before applying the provision.
Check the latest Gazette, corrigendum and portal/circular instructions for the relevant date.
Retain wage/service/member data, nominations, approvals, challans/returns and acknowledgements.
Where a State rule or establishment-specific exemption applies, document that overlay separately.

Worked use case

Example: the same employee event can produce a different compliance result if the establishment is exempt, the service period is different, or the operative rule changed after the relevant date. Record those facts before calculating the benefit or obligation.

Official-source checks

Related Finin2min guidance

Reviewed for currentness: 12 September 2026. Educational/professional reference; the controlling law, notification, order or official filing instruction prevails.

Current-law status

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.

Primary sources

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

Official English text transcribed from the current India Code consolidation; page headers/line breaks are normalised for web reading. The Gazette/India Code PDF remains authoritative for typography, amendment footnotes and schedules.

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.

Why this is section-specific: the operative-clause, exception, threshold and cross-reference panels above are extracted from Section 5 itself rather than a generic “trigger/control/evidence” template.

Rules, forms and cross-references

Direct 2026 Central Rule mapping

Rule 8 Rule 11 Rule 12

Forms mapped

No prescribed form is directly mapped in the current concordance.

Other sections cited in this text

None expressly mapped in the current concordance.

Related Labour Hub resources

EPFO Schemes ESIC Gratuity hub

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?

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?

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.

Reliance note: This page is an educational legal-reference layer. Verify the current official text, the applicable Central/State rules, notifications, schemes and judicial decisions before acting on a live matter.