ESI Coverage Extended to 31 Districts in Gujarat from October 1, 2026: Employer Compliance Requirements

Introduction 

The Ministry of Labour and Employment has extended the geographical implementation of the Employees’ State Insurance (ESI) framework to establishments situated across the entire areas of 31 districts in Gujarat, with effect from October 1, 2026. 

The extension was notified through Notification S.O. 5310(E) dated September 25, 2026, under the Code on Social Security, 2020. The notification supersedes the earlier notification S.O. 5206(E) dated September 22, 2026, subject to the specified savings provision. 

The development is relevant to employers operating in districts where the ESI framework was either not previously implemented or applied only to certain areas. Establishments should review their location-specific coverage and assess the registrations, contributions and other compliance requirements applicable to them. 

Districts Covered by the ESI Extension

The notification extends implementation across the entire geographical areas of 15 previously non-implemented districts and 16 partially implemented districts. 

The 15 previously non-implemented districts are: 

Amreli, Aravalli, Banaskantha, Botad, Chhota Udepur, Dahod, Dang, Devbhoomi Dwarka, Gir Somnath, Kutch, Mahisagar, Narmada, Patan, Tapi and Vav-Tharad. 

The 16 districts that were previously partially covered are: 

Ahmedabad, Anand, Bharuch, Bhavnagar, Jamnagar, Junagadh, Kheda, Mehsana, Morbi, Navsari, Panchmahal, Porbandar, Rajkot, Sabarkantha, Surat and Surendranagar. 

With effect from October 1, 2026, establishments situated in areas of these districts that were not previously covered are brought within the geographical scope of the notification. 

Employer Contribution and Employee Benefit Implications

Under the notification, contributions from employers and employees of establishments in the specified areas become payable under Section 29 of the Code on Social Security, 2020. Employees are also eligible for benefits administered by the Employees’ State Insurance Corporation under Chapter IV, subject to the applicable statutory eligibility requirements. 

The geographical extension does not mean that every employee automatically qualifies for every ESI benefit. Employers must assess the applicable statutory conditions, including the relevant employee eligibility requirements and contribution obligations. 

Establishments operating across multiple locations should pay particular attention to the distinction between areas previously covered by the ESI framework and those brought within its geographical scope from October 1, 2026. 

ESI Registration and Compliance Steps for Employers

Employers with operations in the affected districts should undertake a location-wise compliance review. The review should include: 

• Identifying establishments situated in the newly covered areas. 
• Reviewing existing ESI registration details and determining whether further registration or record updates are required. 
• Assessing employee eligibility and applicable contribution obligations. 
• Updating payroll systems and contribution calculations from the relevant effective date. 
• Reviewing employee records and internal compliance processes to ensure that statutory requirements are appropriately reflected. 

Employers should also verify their establishment-specific obligations under the Code on Social Security, 2020, and the applicable rules and administrative directions. 

Conclusion

The extension of ESI coverage across the entire areas of 31 Gujarat districts expands the geographical scope of the statutory social security framework. Employers should assess whether their establishments fall within the newly covered areas and align their registration, payroll and contribution processes with the requirements applicable from October 1, 2026.

Last Updated on 27 October, 2026