Aadhaar Authentication Not Mandatory for ESCI Benefits, Says Labour Ministry

New Delhi: The Ministry of Labour and Employment has stated that Aadhaar authentication is optional for beneficiaries of the Employees’ State Insurance Scheme (ESI). 

Aadhaar Authentication Not Mandatory for ESCI Benefits  

In a notice released on August 19, 2025, the ministry stated that no worker would be denied medical or cash benefits just because they were unable or decided not to authenticate using Aadhaar.

Under the guidelines, the Employees’ State Insurance Corporation (ESIC) may use Aadhaar authentication for identity verification, but only with the prior consent of the beneficiary. Those who prefer not to use Aadhaar can present other documents, such as a passport, PAN card, or driving license, to access benefits.

What Is ESIC? 

The Employees' State Insurance Corporation is a statutory body under the Union Ministry of Labour and Employment, set up under the Employees’ State Insurance Act, 1948. It provides a wide range of social security benefits to workers and their families, including medical care, maternity benefits, disability compensation, and financial support in case of sickness or death. The scheme is aimed particularly at employees in the organised sector, ensuring protection during times of financial or health-related vulnerability.

The Labour Ministry further explained that Aadhaar-based verification was introduced to make processes faster, reduce paperwork, and improve the reliability of benefit distribution. However, officials stressed that Aadhaar will not be mandatory, and the absence of authentication cannot stop beneficiaries from receiving their rightful entitlements.

The message is clear ESIC benefits are for workers first, Aadhaar is just an option, not a barrier.

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