Over 1.03 Crore New Workers Enrolled Under ESIC After Reforms, Says Labour Ministry
ANI via The Hindu
NEW DELHI: The Union Labour Ministry on Friday said that more than 1.03 crore new workers have been brought under the Employees’ State Insurance Corporation (ESIC) following the rollout of key reforms, including the Scheme to Promote Registration of Employers/Employees (SPREE). The move has significantly expanded India’s social security coverage, particularly for workers and establishments that were previously outside the formal safety net.
Speaking in New Delhi on January 16, 2026, Labour Ministry officials said the SPREE scheme, along with reforms in the Employees’ Provident Fund Organisation (EPFO) and ESIC, has helped extend social security benefits to over one crore workers in a short span of time.
Operational since July 2025, the SPREE scheme offers a one-time opportunity for employers and employees who were inadvertently left out of the ESI framework to register themselves without fear of retrospective coverage or punitive action. The scheme is aimed at encouraging voluntary compliance rather than enforcement-driven registration.
“Till January 11, 2026, around 1.17 lakh new employers and 1.03 crore new employees have registered under the SPREE scheme with ESIC,” a senior Ministry official told reporters. He added that the scheme will remain operational from July 1, 2025, to January 31, 2026.
EPFO Reforms Ease Withdrawals and Speed Up Claims
Alongside ESIC reforms, the Labour Ministry also highlighted major changes in EPFO processes aimed at improving liquidity and ease of access for members. According to officials, EPFO members are now allowed to withdraw up to 75 per cent of their provident fund balance under simplified and liberalised rules.
“The remaining 25 per cent stays invested, helping members build a stronger retirement corpus,” the official said, underlining the balance between immediate financial relief and long-term savings.
The ministry also pointed to improved efficiency in claim settlements. Data shared by officials showed that 47.48 per cent of total claims and 72.09 per cent of advance claims are now being settled through auto mode, significantly reducing processing time and paperwork after streamlining procedures.
Boost to Formalisation and Worker Security
The government views these reforms as a step towards greater formalisation of the workforce and improved trust between employers, employees, and social security institutions. By removing the fear of penalties and retrospective liabilities, SPREE has encouraged many small establishments and informal employers to come forward voluntarily.
Labour officials said the reforms reflect a shift from compliance-driven enforcement to a facilitative approach, aimed at ensuring wider coverage and faster service delivery.
With just a few weeks left before the SPREE window closes, the Ministry expects more registrations in the coming days, further strengthening India’s social security framework for workers across sectors.
Our Thoughts from TheTrendingPeople.com
The sharp rise in ESIC registrations under SPREE shows that policy design matters as much as intent. By removing fear and simplifying processes, the government has managed to bring over a crore workers into the social security fold in less than a year. EPFO’s push towards faster, automated settlements and flexible withdrawals also signals a more worker-friendly approach. Together, these reforms underline a clear message: formalisation works best when systems are simple, accessible, and built on trust rather than penalties.