ESIC extends New Amnesty Scheme 2025 by three months to December 31; check details

The scheme, which originally ran from October 1, 2025 to September 30, 2026, will now continue from October 1, 2026 to December 31, 2026 on the existing terms and conditions, the Ministry of Labour and Employment said in a release on Thursday.

The extension follows a review of representations from various stakeholders, the release said, and is aimed at giving eligible employers and insured persons additional time to avail themselves of the scheme.

ESIC described it as a one-time dispute resolution initiative meant to reduce the backlog of court cases and promote compliance under the erstwhile ESI Act, by providing "a structured mechanism for employers to resolve legal disputes with ESIC for an out-of-court settlement".

Under the scheme, ad-hoc assessments can be settled by paying the actual contributions along with interest, with no damages levied. Cases can be withdrawn where employers have already paid their dues, subject to payment of 10% of the disputed damages.

Separately, cases filed by ESIC for non-submission of records or delayed payments, which were subsequently complied with, will also be withdrawn with the permission of the court.

Court cases filed up to March 31, 2025 are eligible for the scheme. "All concerned stakeholders are encouraged to make use of the extended window before it closes on 31.12.2026," the release said, adding that details are available on the ESIC website.

The ministry launched the scheme as a practical, employer-friendly route to resolving disputes, saying it "supports the government's broader goal of enhancing ease of doing business while upholding the rights of citizens served by ESIC".

The extension is expected to help employers who are contesting assessment orders or damages levied for procedural lapses, and who would otherwise have had to pursue litigation. For ESIC, the amnesty scheme reduces the burden of pending cases before courts and industrial tribunals, while recovering contributions that are legitimately due.