The ‘New Amnesty Scheme 2025’ is a one-time dispute resolution initiative aimed at reducing the backlog of court cases and promoting compliance under the erstwhile ESI Act, the ministry said on Thursday.
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The scheme provides a structured mechanism for employers to resolve legal disputes with ESIC for an out-of-court settlement.
As per the ministry, court cases filed up to 31.03.2025 are eligible under this scheme. The scheme ran from October 1, 2025 to September 30, 2026.
The scheme allows for settlement of ad-hoc assessments by paying actual contributions and interest without any damages. Besides, it allows for 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Cases filed by ESIC for non-submission of records or delayed payments, which were later complied with, will also be withdrawn with court permission.Also read | EPFO plans to invest in startups, AIFs five years after govt approval
With the extension of this scheme, eligible employers and insured persons will have additional time to avail themselves of the benefits of the scheme, it added.
The ‘New Amnesty Scheme, 2025’ is a practical and employer-friendly route to dispute resolution and supports the government’s broader goal of enhancing ease of doing business while upholding the rights of citizens served by ESIC, it added.