The government has extended the Employees’ State Insurance Corporation’s (ESIC) New Amnesty Scheme 2025 until December 31, 2026, to provide employers and insured persons additional time to settle pending legal disputes.
The three-month extension, announced by the Labour Ministry, follows a review of representations received from various stakeholders. The scheme, which was initially operational from October 1, 2025, to September 30, 2026, will continue under the existing terms and conditions.
The New Amnesty Scheme 2025 is a one-time dispute resolution initiative aimed at reducing the backlog of court cases and promoting compliance under the erstwhile Employees’ State Insurance (ESI) Act. It provides a mechanism for employers to resolve eligible disputes with ESIC through out-of-court settlements.
Under the scheme, ad hoc assessments can be settled by paying actual contributions and interest, without any damages. Cases in which employers have already paid their dues can be withdrawn subject to payment of 10 per cent of the disputed damages.
Cases filed by ESIC over non-submission of records or delayed payments can also be withdrawn with court permission if the required compliance has subsequently been completed.
Court cases filed on or before March 31, 2025, are eligible under the scheme.
The Labour Ministry has urged eligible employers and insured persons to take advantage of the extended window before it closes on December 31, 2026.
The initiative is intended to facilitate dispute resolution, encourage voluntary compliance and support the government’s broader objective of improving ease of doing business while safeguarding the rights of ESIC beneficiaries.
PIB
