ESIC Amnesty Scheme Window Extended Till End of 2026

Employers facing pending disputes with the Employees' State Insurance Corporation now have more time to resolve them. The government announced on Thursday that the New Amnesty Scheme 2025 has been extended until December 31, 2026.

The decision followed a review of feedback received from various stakeholders. Initially, the scheme was scheduled to operate from October 1, 2025 to September 30, 2026. Under existing terms, it has now been extended by three months, running from October 1, 2026 to December 31, 2026.

The initiative is a one-time dispute resolution mechanism. Its aim is to reduce the number of cases pending in courts and to boost compliance under the earlier ESI Act.

The scheme allows employers to settle legal disputes with ESIC outside the courts through a defined process. The government views it as a practical, employer-friendly option that supports ease of doing business and reinforces its broader commitment to protecting the rights of citizens connected with ESIC.

Ad hoc assessments can be closed by paying actual contributions and interest, and no damages will be charged. Where employers have already paid the dues, cases with disputed damages can be withdrawn after paying 10 per cent of the disputed damages.

Cases filed by ESIC over non-filing of returns or late payments may also be withdrawn with court permission if the employer has since complied.

As per an official statement, court cases filed on or before March 31, 2025 are eligible. The extension provides eligible employers and insured persons with extra time to avail the benefits.

The Labour Ministry has urged all concerned stakeholders to use the extended period before it ends on December 31, 2026.

The announcement comes after Union Labour and Employment Minister Mansukh Mandaviya recently said that India is providing health security to 25 crore people through ESIC.