ESIC Amnesty Scheme Extended: Settle Old ESI Disputes Before December 31
ESIC Amnesty Scheme offers employers an opportunity to address long-pending ESI disputes under the extended deadline. Find out who can benefit and how to settle outstanding cases.
ESIC Amnesty Scheme has been extended until December 31, giving employers more time to settle pending ESI disputes and resolve old cases.
NEW DELHI, ESIC Amnesty Scheme: The Employees’ State Insurance Corporation (ESIC) has extended its New Amnesty Scheme 2025 by three months, giving employers and insured persons until December 31, 2026 to settle pending legal disputes under the Employees’ State Insurance Act, 1948.
The scheme was originally open from October 1, 2025 to September 30, 2026. The extra window runs from October 1 to December 31, 2026, and all existing terms and conditions continue to apply, ESIC said in an official release issued on October 29.
What the ESIC Amnesty Scheme Is and Why It Exists
The scheme is a one-time dispute resolution mechanism that lets employers and insured persons settle cases with ESIC outside the courtroom. It was approved by the Corporation at its 196th meeting in Shimla in June 2025, chaired by Union Labour Minister Mansukh Mandaviya. ESIC detailed the rules in guidelines issued on October 1, 2025. According to the Corporation, about 27,000 cases were pending in various courts as of March 31, 2025, and the scheme is meant to cut that backlog.
ESIC has said earlier procedures offered limited appeal options and gave its officers no power to withdraw cases even after an employer complied, which kept disputes alive longer than necessary. Employers who benefited from earlier amnesty schemes can also apply under this one. The Corporation has also linked the scheme to the government’s ease of doing business agenda.
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ESIC Amnesty Scheme – Settlement Terms: What Employers Have to Pay
The scheme sets out different routes depending on the nature of the dispute. Where ESIC made an ad-hoc assessment, an employer can settle by paying the actual contribution due along with interest, and no damages are levied. The employer must also give an undertaking to stay compliant in future, and an employer who lacks records can support the accepted dues with other documents.
In cases where contribution and interest have already been paid but the employer is contesting the damages in court, the matter can be closed on payment of 10 per cent of the damages ESIC determined. Where ESIC itself has appealed against a lower court’s decision, the damages ordered by the lower court will be accepted for withdrawal.
The scheme also covers cases ESIC filed over non-submission of records or delayed payment, where the employer has since complied. These can be withdrawn with the court’s permission. Certain older prosecution cases are included as well, such as those under Section 85 where dues have been pending for more than 15 years as of March 31, 2025, and the outstanding contribution is up to Rs 25,000 excluding interest and damages. Insured persons facing proceedings over incorrect declarations can seek withdrawal after refunding any excess payments and giving an undertaking, although cases involving criminal conspiracy or forgery are excluded. Employers who registered voluntarily by filing Form-01 on the ESIC portal are also left out of the scheme.
ESIC Amnesty Scheme: Eligibility, Process and the Deadline
Only court cases filed on or before March 31, 2025 qualify. The scheme covers employers of both running and closed units, as well as insured persons, with matters pending under provisions of the ESI Act including Sections 45A, 45AA, 75, 82, 84 and 85. Applicants submit their details, case particulars and proof of payment or compliance in the prescribed format, and obtain court approval where required.
A field-level committee reviews each case, and regional and sub-regional officers are authorised to approve settlements. ESIC has said settlements must be completed within six months of the date of application. With the revised cut-off of December 31, 2026, ESIC has urged eligible employers and insured persons to use the extended window to settle their disputes. The Corporation says the extension is intended to reduce litigation, encourage voluntary compliance and support ease of doing business.
