Govt extends ESIC Amnesty Scheme till December 31, 2026: Who can benefit?

The extension follows requests from various stakeholders and aims to reduce pending court cases and encourage employers to comply with the rules under the erstwhile Employees' State Insurance (ESI) Act.The New Amnesty Scheme 2025 is a one-time initiative that allows employers to settle certain legal disputes with ESIC without going through lengthy court proceedings. (Photo: Pexels)New Delhi,Oct 29, 2026 12:29 ISTThe Employees’ State Insurance Corporation (ESIC) has extended its New Amnesty Scheme 2025 by three months, giving employers and insured persons more time to settle pending disputes. The scheme, which was scheduled to end on September 30, 2026, will now remain open until December 31, 2026.The extension follows requests from various stakeholders and aims to reduce pending court cases and encourage employers to comply with the rules under the erstwhile Employees’ State Insurance (ESI) Act.WHAT IS THE ESIC NEW AMNESTY SCHEME 2025?The New Amnesty Scheme 2025 is a one-time initiative that allows employers to settle certain legal disputes with ESIC without going through lengthy court proceedings. It aims to reduce the backlog of cases and provide a simpler way to resolve disputes related to assessments, contributions and other compliance issues.Following the extension, eligible employers and insured persons can continue to seek settlement under the scheme's existing terms and conditions. WHAT ARE THE BENEFITS OF THE ESIC AMNESTY SCHEME?Under the scheme, employers can settle ad-hoc assessments by paying the actual contributions and interest, without having to pay damages. Credit: pib.gov.in In cases where employers have already paid their dues, pending cases can be withdrawn, provided they pay 10% of the disputed damages. The scheme also covers cases filed by ESIC over the non-submission of records or delayed payments, where the required compliance has since been completed. Such cases can be withdrawn with the court's permission.Court cases filed up to March 31, 2025, are eligible for settlement under the New Amnesty Scheme 2025.The scheme offers eligible employers and insured persons an opportunity to resolve pending disputes without pursuing lengthy legal proceedings. The extension gives them additional time to complete the process.WHAT IS THE LAST DATE TO SETTLE DISPUTES UNDER THE SCHEME?ESIC has extended the New Amnesty Scheme 2025 from October 1 to December 31, 2026. Eligible employers and insured persons can use this additional period to settle their pending cases under the existing rules.The corporation has encouraged all eligible stakeholders to take advantage of the extended window before it closes on December 31, 2026.The extension is aimed at making dispute resolution easier, reducing litigation and promoting voluntary compliance. It also supports the government's broader effort to improve ease of doing business while protecting the rights of citizens served by ESIC.- Ends