The Employees’ State Insurance Corporation (ESIC) announced the kickstarting of a series of outreach activities centred around the Amnesty Scheme 2025, to be undertaken by ESIC field offices across the country.

ESIC, in its 196th Meeting held on 26th June 2025 at Shimla, Himachal Pradesh, under the chairmanship of Dr. Mansukh Mandaviya, Union Minister for Labour & Employment and Youth Affairs & Sports, approved the launch of Amnesty 2025. The initiative was formally announced on 27th June 2025.

Amnesty Scheme 2025

The Amnesty Scheme 2025 is a one-time dispute resolution initiative aimed at reducing the backlog of court cases and promoting compliance under the ESI Act. The scheme will come into effect on 1st October 2025 and remain valid until 30th September 2026, providing a structured mechanism for employers to resolve legal disputes with ESIC through out-of-court settlements.

As of 31st March 2025, around 27,000 cases were pending in various courts. The scheme allows:

• Settlement of ad-hoc assessments by paying actual contributions and interest—no damages will be levied.
• Withdrawal of cases where employers have already paid dues, subject to payment of 10% of disputed damages.
• Cases filed by ESIC for non-submission of records or delayed payments, which were later complied with, will also be withdrawn with court permission.
• Court cases filed up to 31.03.2025 are eligible under this scheme.

Importantly, Regional Directors and Sub-Regional Officers have been empowered to process withdrawals during this period.

Before this scheme, limited appeal provisions and lack of withdrawal powers often prolonged litigation even after compliance. Amnesty 2025 addresses these gaps, offering a practical and employer-friendly route to dispute resolution and supporting the government’s broader goal of enhancing ease of doing business.

Detailed guidelines of the scheme will be issued separately through a notification, prior to the scheme coming into effect.

This proactive step by the ESI Corporation reflects its commitment to strengthening social security and simplifying compliance for employers. The Amnesty Scheme 2025 provides a practical route to resolve long-pending litigations, reduce legal burden, and promote ease of doing business. Together, these initiatives are a significant move toward inclusive growth, fostering trust between stakeholders and reinforcing ESIC’s role as a progressive and responsive social security institution.

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Rini Choudhury/Anjelina Alexander

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