The Employees’ State Insurance Corporation (ESIC) has extended the New Amnesty Scheme 2025 until 31 December 2026. The scheme was initially scheduled to run from 1 October 2025 to 30 September 2026, and the extension provides eligible employers and insured persons with three additional months to resolve pending legal disputes. The Ministry of Labour and Employment announced the extension after receiving representations from stakeholders.
Scheme period and eligibility
The New Amnesty Scheme 2025 is a one-time dispute resolution initiative for pending disputes under the erstwhile Employees’ State Insurance (ESI) Act, 1948. It aims to facilitate settlement of disputes and reduce the backlog of cases in courts and tribunals. Cases filed in court on or before 31 March 2025 are eligible for settlement under the scheme. About 27,000 cases pending against employers in courts and tribunals can be considered under the scheme. Eligible parties include employers and insured persons with disputes covered by its settlement provisions.
Settlement provisions
Under the scheme, employers can settle ad-hoc assessments by paying the actual contribution due and interest, without payment of damages. Where an employer has already paid the dues, the related case may be withdrawn subject to payment of 10% of the disputed damages. Regional directors have been empowered to withdraw cases when contributions and interest have been paid. They can also process settlements relating to coverage, contribution and damages.
ESIC and the ESI framework
ESIC administers the Employees’ State Insurance scheme under the ESI Act, 1948. The Act provides social security benefits to insured employees, including medical, sickness, maternity, disablement and dependants’ benefits. The amnesty scheme addresses disputes involving assessments and compliance under this statutory framework.
Important Facts for Exams
- The Employees’ State Insurance Act was enacted in 1948.
- The New Amnesty Scheme 2025 is a one-time dispute resolution initiative.
- Eligible court cases must have been filed on or before 31 March 2025.
- Regional directors can process settlements concerning coverage, contribution and damages.
The scheme’s extended deadline is 31 December 2026. Settlement of ad-hoc assessments requires payment of actual contributions and interest, with no damages levied.
