ESIC extends deadline for 'New Amnesty Scheme 2025' until December 31, 2026

The Employees' State Insurance Corporation (ESIC) has announced an extension to the period of the 'New Amnesty Scheme, 2025'. This scheme will now remain in effect until December 31, 2026, providing employers and insured persons more time to resolve their pending cases. According to a statement from the Ministry of Labour, this decision was taken after reviewing representations made by various stakeholders.

According to the PIB, the scheme was originally scheduled to run from 01.10.2025 to 30.09.2026. However, it has now been extended for an additional three-month period, i.e., from 01.10.2026 to 31.12.2026, under the existing terms and conditions. The main objective of this extension is to reduce the backlog of court cases and increase compliance under the previous ESI Act.

The 'New Amnesty Scheme 2025' is a one-time initiative for dispute resolution. It provides a structured framework for employers to resolve legal disputes with ESIC through out-of-court settlements. Various types of concessions and facilities have been provided under this scheme, which are helpful in the speedy disposal of disputes.

According to a report by PIB Ahmedabad, ad-hoc assessments can be settled under this scheme. In this, employers can complete the process by paying the actual contribution and interest, and no damages will be recovered in this case. This is a practical and employer-friendly path.

In addition, there is a provision to withdraw cases where employers have already paid the outstanding dues. For this, 10% of the disputed damages will have to be paid. Cases filed by ESIC for non-submission of records or delay in payment can also be withdrawn under the scheme, but if those matters have been complied with later, these cases can be withdrawn with the court's permission.

Regarding eligibility to avail the benefits of this scheme, it has been clarified that court cases filed up to 31.03.2025 are eligible under this scheme. The extension of the scheme will give eligible employers and insured persons additional time to avail these benefits. All concerned stakeholders have been encouraged to utilize this extended period before this window closes on 31.12.2026.

According to reports from Business Standard and The Hindu, this scheme supports the government's broader goal, which aims to enhance the ease of doing business while protecting the rights of citizens. Resolving disputes out of court through this scheme will reduce the burden of legal processes and encourage voluntary compliance.

Details of the scheme and further information have also been made available on the official website by ESIC. This extension will provide major relief to all parties who are caught in legal disputes and wish to resolve cases by complying with the rules.