New Delhi: The Employees’ State Insurance Corporation (ESIC) has extended its New Amnesty Scheme, 2025, by three months until December 31, 2026, giving eligible employers and insured persons additional time to resolve pending legal disputes.
According to the Ministry of Labour and Employment, the extension follows a review of representations received from various stakeholders. The scheme will continue from October 1 to December 31, 2026, under the existing terms and conditions.
The one-time dispute resolution initiative aims to reduce the backlog of court cases and promote compliance under the erstwhile Employees’ State Insurance (ESI) Act, 1948. It provides a mechanism for employers to settle eligible disputes with ESIC outside the court system.
What Benefits Does the ESIC Amnesty Scheme Offer?
Under the scheme, employers can settle ad-hoc assessments by paying the actual contribution amount along with applicable 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In cases where employers have already paid their dues, pending cases can be withdrawn subject to payment of 10 per cent of the disputed damages.
The scheme also covers cases filed by ESIC over non-submission of records or delayed payments, provided the required compliance has subsequently been completed. Such cases may be withdrawn with the court’s permission.
Which Cases Are Eligible?
Court cases filed on or before March 31, 2025, are eligible under the scheme, subject to its terms and conditions.
The extension gives eligible employers and insured persons more time to take advantage of the dispute resolution mechanism before the revised deadline.
ESIC Urges Eligible Stakeholders to Apply Before Deadline
The Ministry said the extension is intended to facilitate dispute resolution, encourage voluntary compliance and reduce litigation. It also supports the government’s broader objective of improving ease of doing business while safeguarding the rights of ESIC beneficiaries.
Eligible stakeholders have been encouraged to use the extended window before the scheme closes on December 31, 2026.