The Employees’ State Insurance Corporation (ESIC) has extended its New Amnesty Scheme 2025 till December 31, 2026, giving eligible employers and insured persons additional time to resolve pending legal disputes under the erstwhile Employees’ State Insurance (ESI) Act.
The scheme, which was initially applicable from October 1, 2025, to September 30, 2026, has been extended from October 1 to December 31, 2026, on the existing terms and conditions, ESIC said in a press release issued by the Press Information Bureau (PIB) on October 29.
The extension follows representations from various stakeholders, the release said.
What does the ESIC amnesty scheme offer?
The New Amnesty Scheme 2025 is a one-time dispute resolution initiative aimed at reducing pending court cases and encouraging compliance with the provisions of the erstwhile ESI Act. It provides a mechanism for eligible employers to settle disputes with ESIC outside court.
Under the scheme, employers can settle ad-hoc assessments by paying the actual contributions due along with interest, without any damages being levied.
In cases where employers have already paid their dues, pending cases can be withdrawn subject to payment of 10% of the disputed damages.
The scheme also covers cases filed by ESIC over non-submission of records or delayed payments, where the employers subsequently complied with the requirements. Such cases can be withdrawn with the permission of the court.
Which cases are eligible?
Court cases filed up to March 31, 2025, are eligible under the scheme, subject to its terms and conditions.
ESIC has encouraged eligible employers and insured persons to use the extended window to settle disputes before the scheme closes on December 31, 2026.
The extension is intended to provide additional time for dispute resolution, reduce litigation and promote voluntary compliance, while supporting the broader objective of improving ease of doing business.