Over One Crore New Workers Join ESIC Following SPREE Scheme and Labour Reforms
The Union Labour Ministry announced that the social security net has expanded to over one crore new workers due to recent reforms. Specifically, 1.03 crore new employees and 1.17 lakh new employers registered with the Employees' State Insurance Corporation (ESIC) between July 2025 and January 2026. This growth is attributed to the 'Scheme to Promote Registration of Employers/Employees' (SPREE), which offers a one-time opportunity for registration without punitive action for past non-compliance. Additionally, reforms in the EPFO now allow members to withdraw up to 75% of their balance under simplified provisions, enhancing financial flexibility.
Key Points
- The SPREE scheme aims to formalize the workforce by encouraging employers to register workers for social security benefits.
- ESIC provides medical and cash benefits to employees in case of sickness, maternity, or employment injury.
- EPFO reforms have introduced an 'auto mode' for claim settlement, with over 72% of advance claims now processed automatically.
- The 25% balance retention in EPFO accounts is designed to ensure a better retirement corpus for members.
Exam Facts
- SPREE Scheme operational period: July 1, 2025, to January 31, 2026.
- New ESIC registrations: 1.03 crore workers.
- EPFO withdrawal limit: up to 75% of balance.
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