The government has extended the Employees’ State Insurance Corporation (ESIC) New Amnesty Scheme 2025 until December 31, 2026, giving employers and insured persons additional time to resolve eligible pending legal disputes.
The Labour Ministry announced the extension following a review of representations received from stakeholders. The scheme will continue under its existing terms and conditions.
The New Amnesty Scheme 2025 is a one-time dispute resolution initiative designed to reduce the backlog of court cases and encourage compliance under the erstwhile Employees’ State Insurance (ESI) Act.
It allows eligible employers to settle disputes with ESIC through an out-of-court resolution mechanism.
Initially, the scheme was operational from October 1, 2025, to September 30, 2026. The extension provides an additional three-month window for eligible applicants.
Under the scheme, eligible disputes can be resolved through the following provisions:
- Ad hoc assessments: Employers can settle eligible assessments by paying actual contributions and interest without damages.
- Disputed damages: Employers who have already paid their dues can seek withdrawal of cases by paying 10% of the disputed damages.
- Non-submission of records: Cases filed by ESIC over missing records or delayed payments may be withdrawn with court permission if the required compliance has subsequently been completed.
These provisions aim to make dispute resolution easier while encouraging employers to fulfil their statutory obligations.
Court cases filed on or before March 31, 2025, are eligible for consideration under the scheme.
The Labour Ministry has encouraged eligible employers and insured persons to use the extended period to settle their pending disputes before the revised deadline.
The extension gives businesses additional time to address outstanding legal matters and may help reduce litigation involving ESIC.
By providing a structured settlement mechanism, the initiative also aims to encourage voluntary compliance, improve ease of doing business and safeguard the interests of ESIC beneficiaries.
