Govt extends Amnesty Scheme under ESIC for three month till December 31

The Indian government has extended the Amnesty Scheme 2025 under the Employees' State Insurance Corporation (ESIC) for an additional three months, until December 31, 2026. This extension aims to provide employers more time to resolve disputes with ESIC through out-of-court settlements, thereby reducing the backlog of court cases. The 'New Amnesty Scheme 2025' is a one-time initiative designed to promote compliance under the erstwhile ESI Act and streamline the dispute resolution process.

The scheme allows eligible employers to settle legal disputes with ESIC without going to court, provided the cases were filed up to March 31, 2025. Employers can resolve ad-hoc assessments by paying the actual contributions and interest accrued, without incurring any additional damages. Additionally, employers who have already paid dues can withdraw their cases by paying just 10% of the disputed damages, subject to court approval.

Cases dismissed by ESIC due to non-submission of records or delayed payments, which were later rectified, can also be withdrawn with the consent of the court. The extension of the Amnesty Scheme ensures that eligible employers and insured persons have additional time to take advantage of the benefits offered by the scheme. This move supports the government's broader objective of enhancing ease of doing business while safeguarding the rights of citizens served by ESIC.