ESIC extends New Amnesty Scheme 2025 for employers till 31 December 2026

The Employees' State Insurance Corporation (ESIC) has extended its New Amnesty Scheme, 2025 by three months, until 31 December 2026, on the existing terms and conditions, according to a Ministry of Labour and Employment release dated 29 October 2026. The scheme had run from 1 October 2025 to 30 September 2026.

What Happened

ESIC said it extended the scheme after reviewing representations from various stakeholders. The extended window runs from 1 October 2026 to 31 December 2026.

The New Amnesty Scheme, 2025 is a one-time dispute resolution scheme meant to reduce the backlog of court cases and promote compliance under the erstwhile ESI Act. ESIC runs the state health insurance scheme for workers, funded by contributions from employers and employees. The scheme gives employers a structured way to settle legal disputes with ESIC out of court.

Under the scheme, as the release describes it:

• Ad-hoc assessments can be settled by paying the actual contributions and interest, and no damages will be levied. An ad-hoc assessment is a demand ESIC raises on its own estimate when records are not available.
• Cases where employers have already paid their dues can be withdrawn, subject to payment of 10% of the disputed damages.
• Cases ESIC filed for non-submission of records or delayed payments, which were later complied with, will also be withdrawn with the court's permission.
• Court cases filed up to 31 March 2025 are eligible.

What It Means

Employers with pending court cases or disputed assessments with ESIC, filed up to 31 March 2025, now have until 31 December 2026 to settle them under the scheme. The release says eligible employers and insured persons get additional time to use the scheme, and encourages them to apply before the window closes on 31 December 2026.

For an employer facing an ad-hoc assessment, settling under the scheme means paying the actual contributions with interest but no damages. Where dues are already paid, a case can be closed by paying 10% of the disputed damages.

Details of the scheme are available on ESIC's website at https://esic.gov.in/attachments/publicationfile/Amnesty_Flyer_2025_1762755260.pdf. The release does not set out any other change to the scheme's terms.

Source: PIB press release