The Maharashtra government’s plan to bring medical and educational institutions under the Employees’ State Insurance (ESI) scheme has been put on hold. While the intention was to provide social security to more workers, a legal conflict between old and new laws has forced the state to pause the process.
The Original Plan
On January 31, 2026, the Government of Maharashtra issued a notification to extend ESI benefits to all private medical and educational institutions that employ 10 or more people. This was intended to ensure these staff members had access to healthcare and other social security benefits.
Why the Plan is Paused: The “Expired Law” Problem
The delay is happening because the state government based its order on a law that had already been replaced by the Central Government. Here is the breakdown of that conflict:
• The Law Change: On November 21, 2025, the Central Government officially “repealed” (cancelled) the old ESI Act of 1948. It was replaced by a new law called the Code on Social Security, 2020.
• The Timing Error: The state government issued its notification in January 2026. Because this happened months after the 1948 law was cancelled, the state was effectively using an “expired rulebook”.
• The Legal Result: The Law and Judiciary Department pointed out that you cannot issue a new order using a law that no longer exists. Therefore, the January notification was legally invalid from the start.
Current Status and Next Steps
The state government has now initiated action to officially cancel the January notification.
As of February 12, 2026, all regional ESI offices and hospitals in Maharashtra have been instructed to stop all further action and keep the implementation “in abeyance” (on hold) until further notice.
What this means for institutions: For now, schools and hospitals do not need to follow the January order. The expansion of ESI coverage will remain paused until the state government provides new instructions or issues a fresh notification under the correct new law—the Code on Social Security, 2020.