Notification under Section 138(1) of CoSS, 2020

**Executive Summary** The Ministry of Labour and Employment issued notification S.O. 2362(E) on May 8, 2026, to designate specific officials of the Employees’ State Insurance Corporation (ESIC) as compounding officers. Issued under the Code on Social Security, 2020, this authorization applies to all establishments covered under Chapter IV of the Code. The notification is effective immediately from its date of publication in the official gazette. **Key Points / Main Content** **Authorization of Compounding Officers** * The Central Government has authorized specific high-ranking officials within the Employees’ State Insurance Corporation to exercise the powers of a compounding officer. * The authorized officials include the Director General, Insurance Commissioner, Additional Commissioner, Regional Director Grade ‘A’/Director, and Regional Director Grade ‘B’/Joint Director. **Legal and Regulatory Framework** * The notification is issued in exercise of powers conferred by sub-section (1) of section 138 of the Code on Social Security, 2020. * The mandate is read in conjunction with sub-rule (1) of rule 54 of the Social Security (Central) Rules, 2026. **Scope of Application** * The authority of these compounding officers extends to all establishments covered under the provisions of Chapter IV of the Code on Social Security, 2020. * The powers are effective from May 8, 2026, the date of the notification’s publication in the official gazette. **Impact Analysis** **Employees’ State Insurance Corporation (ESIC) Officials** **Impact** Designated officials, ranging from the Director General to Joint Directors, are now legally empowered to act as compounding officers under the Code. **Action Required** The identified officials must assume the responsibilities and exercise the statutory powers of a compounding officer in relation to establishments covered under Chapter IV. **Establishments covered under Chapter IV of the Code** **Impact** These establishments are now subject to the compounding authority of the specified ESIC officials for relevant legal and regulatory matters. **Action Required** Establishments must interact with the newly authorized designated officers for any matters requiring the exercise of compounding powers as per the provisions of the Code.

Key Entities Referenced