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In a bid to reduce litigation and promote compliance under the Employees' State Insurance (ESI) Act, 1948, the ESI Corporation (ESIC) on Friday approved a one-time amnesty scheme – applicable from October 1, 2025.
“The scheme aims to reduce the number of litigations by providing a mechanism for the resolution of disputes outside the court, offering employers an opportunity to come forward for a mutual settlement to promote ease of doing business,” the labour ministry said in a statement after the meeting of the apex decision making body of the social security organisation.
The scheme will be applicable till September 30, 2026.
Under the scheme, the regional directors have been empowered to withdraw cases where contributions and interest have been paid, and also to withdraw cases filed against insured persons over five years ago where no notices were issued. For the first time, disputes along with cases involving damages and interest regarding coverage are included.
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Besides, the ESIC has also approved the re-launch of scheme to promote registration of employers/employees (SPREE) with the objective of expanding ESI coverage across the country. The scheme introduced in 2016, successfully facilitated the registration of over 88,000 employers and 10.2 million employees.
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The renewed SPREE will be open from July 1 to December 31, 2025, offering a one-time opportunity for unregistered employers and left-out workers—including contractual and temporary staff—to enroll under the ESI Act. Under the scheme, employers registering during this period will be treated as covered from the date of registration or as declared by them, while newly registered employees will be covered from their respective dates of registration.
“By focusing on voluntary compliance rather than penalization, the scheme will seek to ease the litigation burden, encourage formal registration, and foster improved engagement and goodwill among stakeholders,” the labour ministry statement said.
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