The decision is expected to provide employers and insured persons with more time to address outstanding disputes and take advantage of the scheme’s provisions for resolving penalty-related cases.
The extension follows suggestions received by the ministry from several stakeholders. After reviewing these suggestions, ESIC decided to extend the duration of the New Amnesty Scheme 2025 by three months.
The scheme was initially scheduled to run from October 1, 2025, to September 30, 2026. Under the revised timeline, it will now continue from October 1, 2026, to December 31, 2026, allowing eligible parties an additional three months to settle pending matters.
Introduced by the Ministry of Labour, ESIC’s New Amnesty Scheme 2025 is an initiative aimed at resolving disputes and reducing cases that have remained pending in courts for years. It also seeks to ensure compliance with the provisions of the old Employees’ State Insurance (ESI) Act.
Under the scheme, employers are provided with a structured mechanism to resolve legal disputes with ESIC outside the courts. It allows them to settle ad hoc assessments by paying the actual contribution amount and applicable interest, without the imposition of damages.
The scheme also provides a settlement option for cases in which employers have already paid the outstanding amount. Such employers can withdraw their cases, subject to the condition that they pay 10% of the disputed damages amount.
With the deadline now extended to December 31, 2026, the revised timeline offers employers and insured persons additional time to pursue settlements under the scheme and resolve eligible disputes without prolonged court proceedings.
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