No denial of benefits without Aadhaar authentication: ESIC clarifies in new notification
ET Online
No denial of benefits without Aadhaar authentication
Synopsis
The Labour Ministry has recently announced that the Employees' State Insurance Corporation (ESIC) can now use Aadhaar authentication to verify the identity of beneficiaries.
By Sneha Kulkarni, ET Online
The Ministry of Labour and Employment has recently announced that the Employees' State Insurance Corporation (ESIC) can now use Aadhaar authentication to verify the identity of beneficiaries. The initiative aims to improve the delivery of social security benefits and promote transparency in administration.
Also read: Aadhaar deactivation for deceased family member: How can you report death of a relative to UIDAI, prevent any fraud
The Ministry of Labour and Employment, in a notification on August 19, 2025, stated: "The Employees' State Insurance Corporation (ESIC) is allowed to perform authentication and be permitted the use of the Aadhaar number during authentication for establishing the identity of the Aadhaar number holder and notify the same under rule 5 of the said rules read with sub-clause (ii) of clause (b) of sub-section (4) of section 4 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (hereinafter referred to as the said Act)."
The ESIC, however, will be required to obtain prior consent from Aadhaar number holders before conducting authentication, as per the notification.
The notification comes into force from the date of its publication in the Official Gazette, i.e., August 19, 2025.
Using the Aadhaar number to prove identity makes it easier for people to get subsidies, benefits, and services. It removes the need for multiple documents, simplifies the process, and ensures greater transparency and efficiency.
The notification further stated, "Aadhaar authentication shall be performed for usage of digital platforms to ensure good governance and prevention of dissipation of social welfare benefits. Aadhaar authentication only for delivery of social security benefits to bona fide beneficiaries as well as to ensure good governance and effective administration of the scheme mechanism."
SPREE 2025
According to a PIB release on August 18, 2025, ESIC has launched a scheme called the Scheme for Promotion of the Registration of the Employers and Employees (SPREE), which will run from July 1, 2025, to December 31, 2025, aimed at increasing the coverage of uncovered employers and employees. ESI Corporation has also approved an Amnesty Scheme 2025, which serves as a one-time dispute resolution window from October 1, 2025, to September 30, 2026. This initiative looks to reduce litigation and promote compliance under the ESI Act, 1948.
Employers can register their units and employees digitally through the ESIC portal and the Shram Suvidha portal
Registration will be considered valid from the date declared by the employer.
No contribution or benefit will apply for periods prior to registration.
No inspection or demand of past records will be made for the pre-registration period.
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The ministry, however, said that Aadhaar authentication will be optional for ESIC beneficiaries and assured that no one would be denied ESIC benefits due to refusal or inability to complete Aadhaar authentication. If any beneficiary chooses not to authenticate Aadhaar, ESIC can instead accept their passport, PAN card, or driving licence as proof of identity, the ministry said.Also read: Aadhaar deactivation for deceased family member: How can you report death of a relative to UIDAI, prevent any fraud
The Ministry of Labour and Employment, in a notification on August 19, 2025, stated: "The Employees' State Insurance Corporation (ESIC) is allowed to perform authentication and be permitted the use of the Aadhaar number during authentication for establishing the identity of the Aadhaar number holder and notify the same under rule 5 of the said rules read with sub-clause (ii) of clause (b) of sub-section (4) of section 4 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (hereinafter referred to as the said Act)."
The ESIC, however, will be required to obtain prior consent from Aadhaar number holders before conducting authentication, as per the notification.
The notification comes into force from the date of its publication in the Official Gazette, i.e., August 19, 2025.
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ESIC has consistently been making efforts to enhance and broaden ESI facilities in order to deliver high-quality medical services to its beneficiaries. Aadhaar authentication is one the significant steps implemented recently.
Importance of Aadhaar
Using the Aadhaar number to prove identity makes it easier for people to get subsidies, benefits, and services. It removes the need for multiple documents, simplifies the process, and ensures greater transparency and efficiency.The notification further stated, "Aadhaar authentication shall be performed for usage of digital platforms to ensure good governance and prevention of dissipation of social welfare benefits. Aadhaar authentication only for delivery of social security benefits to bona fide beneficiaries as well as to ensure good governance and effective administration of the scheme mechanism."
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SPREE 2025
According to a PIB release on August 18, 2025, ESIC has launched a scheme called the Scheme for Promotion of the Registration of the Employers and Employees (SPREE), which will run from July 1, 2025, to December 31, 2025, aimed at increasing the coverage of uncovered employers and employees. ESI Corporation has also approved an Amnesty Scheme 2025, which serves as a one-time dispute resolution window from October 1, 2025, to September 30, 2026. This initiative looks to reduce litigation and promote compliance under the ESI Act, 1948.
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Under the SPREE 2025Employers can register their units and employees digitally through the ESIC portal and the Shram Suvidha portal
Registration will be considered valid from the date declared by the employer.
No contribution or benefit will apply for periods prior to registration.No inspection or demand of past records will be made for the pre-registration period.
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