New Amnesty Scheme 2025 Extended
The one-time dispute resolution initiative has been extended till December 31, 2026, to reduce court case backlogs and promote compliance under the ESI Act
The New Amnesty Scheme 2025, a one-time dispute resolution initiative, has been extended till December 31, 2026. The scheme aims to reduce the backlog of court cases and promote compliance under the ESI Act.
The scheme provides a structured mechanism for employers to resolve legal disputes with the Employees' State Insurance Corporation (ESIC) for an out-of-court settlement. It allows settlement of ad-hoc assessments by paying actual contributions and interest, with no damages levied.
Employers who have already paid dues can also withdraw cases, subject to payment of 10% of disputed damages. Additionally, cases filed by ESIC for non-submission of records or delayed payments, which were later complied with, will be withdrawn with court permission.
Court cases filed up to March 31, 2025, are eligible under this scheme. The extension of the scheme till December 31, 2026, provides employers with more time to resolve disputes and comply with the ESI Act.
## Why it matters The New Amnesty Scheme 2025 is a significant initiative aimed at reducing the backlog of court cases and promoting compliance under the ESI Act. The scheme supports the government's broader goal of enhancing ease of doing business while upholding the rights of citizens served by ESIC. By providing a structured mechanism for dispute resolution, the scheme encourages employers to comply with the ESI Act and reduces the burden on the judiciary.
The details of the scheme can be accessed at https://esic.gov.in/attachments/publicationfile/Amnesty_Flyer_2025_1762755260.pdf. All concerned stakeholders are encouraged to make use of the extended window before it closes on December 31, 2026.
