ESIC Amnesty Scheme extended to December 31 for eligible dispute settlements

The ESIC Amnesty Scheme will remain available until December 31, 2026, after the Employees’ State Insurance Corporation granted a three-month extension. The additional period gives eligible employers and insured persons more time to resolve covered disputes, according to the reported announcement.

The New Amnesty Scheme 2025 had been due to close on September 30, 2026. Its extended window runs from October 1 through the end of December, with the existing conditions continuing to govern settlements.

ESIC acted after receiving requests from stakeholders. The corporation said the measure was intended to reduce litigation and encourage compliance with requirements under the erstwhile Employees’ State Insurance Act.

Which disputes the settlement window covers

The ESIC Amnesty Scheme provides a one-time route for resolving specified disagreements involving assessments, contributions and other compliance matters. Court cases lodged on or before March 31, 2025, fall within its stated eligibility cutoff.

For ad-hoc assessments, employers can settle by paying the contributions actually due along with interest. Under this provision, they do not have to pay damages.

A different condition applies where the employer has already cleared the dues. Pending proceedings can be withdrawn if the employer pays 10 per cent of the damages under dispute, according to the terms described in the report.

The initiative also addresses proceedings brought by ESIC over missing records or payment delays when the required compliance has subsequently been completed. Withdrawal in those circumstances requires the court’s permission.

The extension changes the closing date rather than replacing those settlement requirements. Eligible employers and insured persons remain subject to the existing scheme rules when seeking resolution of their cases.

ESIC has encouraged those covered to use the additional time before the December deadline. The stated objectives include a smaller backlog of court disputes, simpler settlement procedures and greater voluntary compliance.

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