India’s Employees’ State Insurance Corporation (ESIC) extended its New Amnesty Scheme, 2025, through Dec. 31, 2026, giving eligible employers and insured persons more time to resolve qualifying court disputes. The Ministry of Labour & Employment announced the extension Oct. 29, covering Oct. 1 through Dec. 31.
ESIC extended the window after considering stakeholder submissions, the ministry said. The scheme had been scheduled to end Sept. 30, 2026, after beginning Oct. 1, 2025. It applies to court cases filed by Mar. 31, 2025, subject to the scheme’s detailed conditions.
The payment terms depend on the type of case. For ad hoc assessments, employers can settle by paying the actual contributions owed and interest, without damages. In a damages dispute, a case may be withdrawn after the employer pays contributions and interest, along with 10% of the disputed damages.
A court may permit withdrawal of a case filed by ESIC over missing records or late payments if the employer has since complied. ESIC’s original instructions also set a separate requirement for certain contribution disputes: when an employer cannot provide records or alternative documents, payment must be at least 30% of the assessed contribution plus interest, with no damages.
The ministry describes the one-time scheme as a way to reduce court backlogs and promote compliance under the erstwhile Employees’ State Insurance Act. In a September 2025 release, it said limited appeal provisions and ESIC’s lack of authority to withdraw cases could keep litigation going even after an employer complied.
That September release counted about 27,000 cases pending in courts as of Mar. 31, 2025. ESIC’s instructions say employers or insured persons who used earlier amnesty schemes may also qualify. The extended application window ends Dec. 31, 2026.
