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Rule 8 of the Code on Social Security (Central) Rules, 2026: ESIC Standing Committee and Medical Benefit Committee

The Standing Committee is drawn from the Corporation's members and has a Chairperson appointed by the Central Government, three Central nominees, three State representatives...

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Labour Laws
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September 30, 2026
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Last updated: October 2026Verified against: Government sources

Rule 8 governs the internal machinery of the Employees' State Insurance Corporation: how State members are appointed, who holds the seal, how the Standing Committee is composed and elected, the terms of office, and what the Medical Benefit Committee does.

Why this rule matters

The Corporation constituted under section 5 of the Code runs the ESI scheme. Rule 8 covers the structure beneath it. For employers, the day-to-day effect is indirect: decisions on the scheme, contracts and administration flow through the Standing Committee. The committee's scale is in rule 8(3), and its powers in rule 8(8). For help with ESI registration and contributions in practice, see our ESI and PF registration service. The statutory framework is in sections 4 and 5 and the old structure is carried on by s.153 until the Code's bodies are constituted.

Members and the seal (rule 8(1) and (2))

  • State members: every person representing each of the States is appointed a member of the Corporation on nomination by the State Government concerned (rule 8(1)).
  • Common seal: kept in the custody of the Director General; it is not affixed to any instrument except in the presence of the Director General or two members of the Standing Committee, who sign the contract in token of it (rule 8(2)(a)).
  • Official seals: each other office may have a facsimile with the office name, affixed only in the presence of persons the Standing Committee authorises, and an instrument so sealed binds the Corporation as if sealed with the common seal (rule 8(2)(b) to (d)).

The Standing Committee (rule 8(3))

CategoryNumber
Chairperson, appointed by the Central Government1
Members of the Corporation appointed by the Central Government3
Members of the Corporation representing three State Governments specified by the Central Government3
Elected by the Corporation: employers' representatives3
Elected: employees' representatives3
Elected: medical profession1
Elected: member elected by Parliament1
Director-General, ex officio1

Adding the rows gives 1 + 3 + 3 + 3 + 3 + 1 + 1 + 1 = 16 seats.

How the elected members are chosen (rule 8(4))

  1. At a Corporation meeting called to elect members under clause (d), the Chairperson of the Corporation invites members to propose names from the group concerned, each seconded by another member.
  2. If the number proposed from a group does not exceed the vacancies, those named are declared elected.
  3. If it exceeds the vacancies, each member present gets a secret ballot paper and votes for as many candidates as there are vacancies, one vote per candidate; a vote for too many candidates or more than one for a candidate makes all that member's votes invalid.
  4. Highest votes win. Where a tie means one additional vote would decide who is elected, the tie is resolved by lot drawn in the Chairperson's presence.
  5. Any question about the validity of an election goes to the Central Government, whose decision is final.

Terms of office (rule 8(6) and (7))

BodyTerm
Corporation members other than those named in s.5(1)(a) to (e) and the ex officio memberFour years from notification of appointment or election; continue until a successor is notified; non-official members not more than two terms in total
Corporation members under s.5(1)(a) to (e)Hold office during the pleasure of the Central Government
Standing Committee members other than the Chairperson and Central and State nomineesTwo years from notification of election; continue until a successor is notified; cease when they cease to be a Corporation member
Standing Committee Chairperson and the Central and State nomineesHold office during the pleasure of the Central Government

Powers (rule 8(8))

The Standing Committee is "responsible for administering the affairs of the Corporation" and may exercise any of the Corporation's powers and functions under the rules and regulations made under the Code.

The Medical Benefit Committee (rule 8(5))

The Medical Benefit Committee's powers and duties are advisory:

  • Advise the Corporation on the constitution, setting up, duties and powers of local committees that help administer medical benefit.
  • Recommend on: the scale and nature of medical benefit at hospitals, dispensaries, clinics and other institutions and the medicines, staff and equipment maintained there; the medical formulary; medical certification for grant of benefits, including procedure, forms, statistical returns, registers and medical records; and measures to improve the health and welfare of Insured Persons and the rehabilitation and re-employment of disabled or injured Insured Persons.
  • Advise on the professional conduct of any medical practitioner employed to provide medical benefit under the Code.

A worked example

A member of the Corporation representing employers is elected to the Standing Committee in a meeting where five employer-side names are proposed and seconded for three seats. Each member present votes on a secret ballot for up to three candidates. Two candidates tie for the third seat, and one additional vote would decide it, so the Chairperson decides by lot. The member serves two years, but if the member stops being a Corporation member, the Standing Committee seat ends as well. (Illustrative.)

Need help with ESI compliance?

The Corporation's committees set the framework, but employers deal with registration, contributions and claims every month. Our ESI and PF registration team can help you keep your ESI position in order.

Key takeaways

  • State members of the Corporation are appointed on State Government nomination.
  • The common seal is held by the Director General and used only as rule 8(2) allows.
  • The Standing Committee has 16 seats: Chairperson, six Government-appointed or State members, eight elected and the Director-General.
  • Elected members serve two years; Corporation members four years, with a two-term cap for non-official members.
  • The Medical Benefit Committee advises and recommends on medical benefit, formulary and certification.

Read next

Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.

Quick recapKey facts & short answers

Key Facts About Rule 8

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Who holds the common seal of the Corporation?

The Director General of the Corporation has custody of it (rule 8(2)(a)).

How many members are elected to the Standing Committee?

Eight: three employers' representatives, three employees' representatives, one from the medical profession and one elected by Parliament.

Rule 8: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

The Director General of the Corporation has custody of it (rule 8(2)(a)).

Eight: three employers' representatives, three employees' representatives, one from the medical profession and one elected by Parliament.

By lot, drawn in the presence of the Chairperson, where one additional vote would decide who is elected.

Two years from notification of election, continuing until a successor is notified.

It advises and makes recommendations on local committees, the scale of medical benefit, the formulary, medical certification, health and rehabilitation measures, and professional conduct of medical practitioners.

The Standing Committee, under rule 8(8).