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ESIC Launches Nationwide Campaign for Amnesty Scheme 2025, Aims to Clear 27,000 Pending Cases

One-time dispute resolution initiative to promote compliance and reduce court case backlog
ESIC
Indian Masterminds Stories

The Employees’ State Insurance Corporation (ESIC) has announced the commencement of outreach activities nationwide for the Amnesty Scheme 2025. This campaign will be carried out by ESIC field offices to spread awareness and facilitate employer participation in this one-time dispute resolution initiative.

Background and Approval

The Amnesty Scheme 2025 was approved during the 196th ESIC meeting held on June 26, 2025, in Shimla, Himachal Pradesh, under the chairmanship of Dr Mansukh Mandaviya, Union Minister for Labour & Employment and Youth Affairs & Sports. The scheme was officially launched on June 27, 2025.

Objective and Duration

Designed as a practical mechanism to reduce the backlog of court cases under the Employees’ State Insurance Act (ESI Act), the Amnesty Scheme will be effective from October 1, 2025, to September 30, 2026. It aims to simplify dispute resolution through out-of-court settlements between employers and ESIC.

Key Features of the Amnesty Scheme 2025

  • Employers can settle ad-hoc assessments by paying actual contributions and interest, with no damages levied.
  • Cases where dues are already paid can be withdrawn by paying only 10% of disputed damages.
  • Cases filed due to non-submission of records or delayed payments, later rectified, will also be eligible for withdrawal upon court approval.
  • The scheme covers all court cases filed up to March 31, 2025.
  • Regional Directors and Sub-Regional Officers are empowered to approve case withdrawals during the scheme’s validity period.

Impact and Importance

As of March 31, 2025, approximately 27,000 cases were pending in various courts. Previously, limited appeal provisions and lack of withdrawal authority delayed resolutions, even after compliance. The Amnesty Scheme addresses these challenges by offering an employer-friendly and efficient route to resolve disputes.

The scheme supports the government’s broader vision of enhancing the ease of doing business while reinforcing ESIC’s commitment to social security and compliance simplification.

Detailed guidelines will be issued through a notification before the scheme becomes operational.


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