ESIC extends the New Amnesty Scheme 2025 by three months, till 31 December 2026
The Employees' State Insurance Corporation (ESIC) has extended its 'New Amnesty Scheme, 2025', which ran from 01.10.2025 to 30.09.2026, for a further period of three months, from 01.10.2026 to 31.12.2026, on the existing terms and conditions, after reviewing representations from various stakeholders, according to a Ministry of Labour & Employment release of 29 October 2026. The scheme is a one-time dispute resolution initiative aimed at reducing the backlog of court cases and promoting compliance under the erstwhile ESI Act, and gives employers a structured mechanism to resolve legal disputes with ESIC through an out-of-court settlement. Under it, ad-hoc assessments can be settled by paying the actual contributions and interest, with no damages levied; cases where employers have already paid their dues are withdrawn, subject to payment of 10% of the disputed damages; and cases filed by ESIC for non-submission of records or delayed payments that were later complied with are also withdrawn, with court permission. Court cases filed up to 31.03.2025 are eligible. With the extension, eligible employers and Insured Persons get additional time to avail of the scheme's benefits, and all stakeholders are encouraged to use the extended window before it closes on 31.12.2026. The release describes the scheme as a practical and employer-friendly route to dispute resolution that supports the Government's goal of enhancing ease of doing business.
Drafted with AI assistance from the official PIB release linked above and checked against it by a second AI pass. Not line-edited by a human.
Learning context
According to a PIB release of 27 June 2025, the Amnesty Scheme - 2025 was approved at the 196th meeting of the Employees' State Insurance Corporation, chaired by Union Minister for Labour & Employment and Youth Affairs & Sports Dr Mansukh Mandaviya at Shimla, Himachal Pradesh, as a one-time dispute resolution window from 1 October 2025 to 30 September 2026, aimed at reducing litigation and promoting compliance under the ESI Act. For the first time, disputes along with cases involving damages and interest regarding coverage were included, and Regional Directors were empowered to withdraw cases where contributions and interest had been paid. The same meeting approved the re-launch of SPREE (Scheme to Promote Registration of Employers/Employees), open from 1 July to 31 December 2025; originally introduced in 2016, SPREE had facilitated the registration of over 88,000 employers and 1.02 crore employees. The Corporation also replaced its graded rates of damages with a fixed rate, reducing the maximum rate of damages from 25% per annum to 1% for every month on the amount payable by the employer.
Check yourself: at which meeting of the ESI Corporation, and where, was the Amnesty Scheme - 2025 approved, and which registration scheme did the same meeting re-launch?
At its 196th meeting, at Shimla, Himachal Pradesh; SPREE (Scheme to Promote Registration of Employers/Employees).
Revision task: from this release, note the scheme's original and extended periods, the three kinds of settlement it allows, the 10% condition and the cut-off date for eligible court cases; from the note, the meeting that approved the scheme, who chaired it, SPREE's period and the new rate of damages.
Test yourself
Till what date has the Employees' State Insurance Corporation (ESIC) extended its 'New Amnesty Scheme, 2025'?
Show the answer
Answer: 31 December 2026
ESIC has extended the 'New Amnesty Scheme, 2025', which ran from 01.10.2025 to 30.09.2026, for a further three months, from 01.10.2026 to 31.12.2026, on the existing terms and conditions. Court cases filed up to 31.03.2025 are eligible under the scheme.
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