The Employees’ State Insurance Corporation (ESIC) has extended the New Amnesty Scheme 2025 until 31 December 2026, giving eligible employers and insured persons additional time to seek resolution of specified disputes and prosecution cases.
According to the Ministry of Labour & Employment announcement published by the Press Information Bureau (PIB) on 29 October 2026, the scheme has been extended for three months, from 1 October 2026 to 31 December 2026, under its existing terms and conditions.
The scheme is a one-time dispute-resolution initiative intended to reduce litigation and facilitate the settlement or withdrawal of eligible cases under the erstwhile Employees’ State Insurance (ESI) Act framework.
Key Highlights of the ESIC Amnesty Scheme Extension
- Extended deadline: 31 December 2026.
- Scheme: New Amnesty Scheme 2025.
- Objective: Reduce litigation and facilitate resolution of eligible disputes.
- Ad-hoc assessments: Eligible cases may be settled by paying actual contributions and applicable interest without damages, subject to the scheme conditions.
- Disputed damages: Eligible cases where dues have already been paid may qualify for withdrawal upon payment of 10% of the disputed damages, subject to the applicable conditions.
- Eligibility cutoff: Court cases filed on or before 31 March 2025 may qualify, depending on the category of case and the scheme’s specific requirements.
- Action required: Employers and insured persons should review their cases and consult the appropriate ESIC office before the extended deadline.
What Is the ESIC New Amnesty Scheme 2025?
The New Amnesty Scheme 2025 is a dispute-resolution initiative introduced by ESIC to provide a structured mechanism for resolving specified pending disputes and prosecution cases.
It covers particular categories of matters under the ESI framework. Depending on the type of case and the conditions satisfied, the scheme may provide for settlement of disputes or withdrawal of eligible proceedings.
The scheme is not a blanket waiver of all ESI contributions, interest, damages, penalties, or other statutory liabilities. Employers must establish that their cases meet the applicable eligibility criteria.
Key Benefits Under the Scheme
1. Settlement of Eligible Ad-Hoc Assessments
Eligible ad-hoc assessment cases may be settled by paying actual contributions and applicable interest without damages, in accordance with the scheme’s terms and conditions.
Employers should review their assessment orders, payroll records, wage information, and contribution history to determine the applicable settlement requirements.
This relief should not be interpreted as applying automatically to every ESI assessment or contribution dispute.
2. Settlement of Eligible Disputed-Damages Cases
Where the applicable dues have already been paid, eligible cases involving disputed damages may qualify for withdrawal upon payment of 10% of the disputed damages, subject to the scheme’s conditions.
Employers should verify the payment status, amount of disputed damages, and relevant case details before relying on this provision. The 10% provision is not a universal reduction applicable to every outstanding ESI liability.
3. Cases Involving Non-Submission of Records or Delayed Payments
The official announcement states that cases filed by ESIC for non-submission of records or delayed payments, where the required compliance was subsequently completed, may be withdrawn with court permission.
Where proceedings are pending before a court, ESIC’s clarification explains that prior court permission is not a prerequisite for entering into a settlement. However, the settlement must be placed before the court for appropriate orders to record the settlement and dispose of or withdraw the pending proceedings.
Employers should follow the applicable ESIC procedures and court requirements for their particular cases.
4. Additional Time to Review Eligible Cases
The extension provides additional time for eligible employers and insured persons to review their records, confirm eligibility, and initiate the prescribed settlement process.
The scheme covers qualifying court cases filed on or before 31 March 2025. However, the filing date alone does not establish eligibility. The applicable conditions for the relevant category of case must also be met.
Who Should Review Their Eligibility?
The extension may be relevant to:
- Employers involved in eligible ESI coverage or contribution disputes.
- Establishments with qualifying disputes concerning damages.
- Employers facing prosecution cases covered by the scheme.
- Insured persons whose cases fall within the scheme’s scope.
- Businesses that have completed the required compliance but still have eligible proceedings pending.
Eligibility depends on the nature of the case, the relevant legal provisions, payment and compliance status, and the specific conditions in the official guidelines.
What Should Employers Do Before 31 December 2026?
Employers considering the scheme should:
- Identify pending cases: Review relevant ESI assessments, disputes, appeals, and prosecution proceedings.
- Verify payment records: Check contributions paid, applicable interest, disputed damages, and any outstanding amounts.
- Collect supporting documents: Organise payroll records, wage registers, contribution records, assessment orders, and relevant legal documents.
- Confirm eligibility: Review the official scheme guidelines and contact the appropriate ESIC Regional or Sub-Regional Office.
- Follow the prescribed application process: Submit the required application, supporting records, and undertakings for the relevant category of case.
- Address pending court proceedings: Where a case is before a court, ensure the settlement is placed before the court for appropriate orders.
Applying under the scheme does not guarantee approval or settlement. Employers should obtain case-specific clarification from ESIC or a qualified professional before relying on any benefit.
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Official Notification and Further Reading
For complete details, consult the official announcement and scheme documents:
- Extension announcement: Ministry of Labour & Employment – Press Information Bureau
- New Amnesty Scheme 2025 guidelines: Download the official ESIC scheme document (PDF)
- Clarification on court proceedings: Read ESIC’s official clarification (PDF)
Source: Ministry of Labour & Employment, Government of India; PIB announcement dated 29 October 2026, and official ESIC scheme documents.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Settlement benefits and withdrawal of proceedings depend on the applicable scheme conditions and case-specific requirements. Employers should consult ESIC or a qualified professional before proceeding.