ESIC launches New Amnesty Scheme, 2025

What changed

ESIC has launched the New Amnesty Scheme, 2025 to settle and withdraw ESI cases filed up to 31 March 2025. The scheme runs from 1 October 2025 to 30 September 2026.

• Coverage disputes: cases can be withdrawn where:
  • the unit has been closed for more than 5 years, the case has been pending more than 5 years, and no assessment has been made; or
  • the employer produces records supporting their position. Units closed within 5 years also pay the accepted contribution plus interest. No damages are charged.
• Contribution disputes: the employer pays contribution and interest based on their own records, or on EPFO or income tax records. If no records exist, they pay at least 30% of the assessed contribution. No damages are charged.
• Damages disputes: the employer pays 10% of the damages determined by ESIC.
• Prosecutions of employers (Sections 85 and 85A): cases are withdrawn once contribution and interest are paid. The employer's compliance must be up to date. No damages are charged.
• Prosecutions of insured persons (Section 84): cases are withdrawn once the excess amount is refunded in full. No interest is charged.
• Old cases under Section 85(a) and (g): cases pending over 15 years, with outstanding contribution up to ₹25,000, can be withdrawn.

Cases are to be settled within 6 months of the application. The scheme is also open to those who used earlier amnesty schemes.

Who it applies to

• Employers with cases filed up to 31 March 2025 under Sections 75 and 82 of the ESI Act, under Article 226, or under Sections 85 and 85A.
• Insured persons with cases filed under Section 84.

What to do

• For court cases: file a petition asking the court's permission for an out-of-court settlement.
• Apply in the form prescribed by ESIC.
• Produce your records. The scheme accepts your own records, or EPFO and income tax records.
• Pay the dues set by the scheme and give an undertaking to comply regularly in future.