This document summarizes the Indian Ministry of Labour and Employment's response to Lok Sabha Unstarred Question No. 1221, answered on July 28, 2025, regarding the extension of the Employees' State Insurance (ESI) Scheme to unorganized sector workers. As of March 31, 2025, the ESI Scheme covered 38,041,160 employees (provisional). The ESI Scheme, as framed under the ESI Act, 1948, is applicable to factories and establishments with ten or more employees earning wages up to ₹21,000 (₹25,000 for persons with disabilities). Consequently, the Act's applicability is limited, excluding the unorganized sector. Recognizing this gap, the government enacted the Code on Social Security, 2020, with the objective of extending social security benefits to all employees and workers, irrespective of their sector of employment (organized, unorganized, or any other sector). The Minister of State for Labour and Employment, Sushri Shobha Karandlaje, provided the response.
Key Entities Referenced
ESI Scheme: Employees' State Insurance Scheme, a social security scheme in India providing medical and cash benefits to employees and their families.
Ministry of Labour and Employment: The Indian government ministry responsible for labour and employment policies and regulations.
Lok Sabha: The lower house of the Parliament of India.
SHRI SHAFI PARAMBIL: Member of Parliament who asked the question regarding ESI Scheme.
SUSHRI SHOBHA KARANDLAJE: Minister of State for Labour and Employment who provided the answer to the question.
ESI Act, 1948: The Employees' State Insurance Act of 1948, which provides for health insurance and other benefits to employees in India.
Code on Social Security, 2020: A legislative act in India aiming to consolidate and amend the laws relating to social security with the goal to extend social security to all employees and workers.
31st March 2025: Date for which the number of employees covered under ESI Scheme is provided in the policy text.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 1221
TO BE ANSWERED ON 28.07.2025
ESI SCHEME TO UNORGANISED SECTOR WORKERS
1221. SHRI SHAFI PARAMBIL:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a)the details of workers who are covered under the ESI Scheme as
on 31st March 2025;
(b)whether the Government is aware of the fact that more than 90%
of the workers in the country are out of the purview of the ESI
scheme due to the unorganised/informal nature of their work;
(c)if so, whether the Government has any plan to extend the ESI
benefits to unorganised sector workers; and
(d)if so, the details thereof and if not, the reasons therefor?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) to (d): The Employees’ State Insurance (ESI) Scheme framed
under ESI Act, 1948 is applicable to all factories and establishments
having ten or more employees, drawing wages up to Rs 21,000/-
(Rs. 25,000/- for Persons with disability). As such, the Act does not
apply to the unorganized sector. The number of employees covered
under ESI Scheme as on 31st March, 2025 is 3,80,41,160
(provisional).
The Government has enacted Code on Social Security,
2020 with the goal to extend social security to all employees and
workers with either in the organized or unorganized or any other
sectors and for matters connected therewith or incidental thereto.
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