New Delhi, October 29: The government on Thursday extended the 'New Amnesty Scheme 2025' till December 31, 2026, giving employers and insured persons more time to resolve pending cases with the Employees' State Insurance Corporation (ESIC), the Union Ministry of Labour and Employment said in a statement.

Source: IANS

The ESIC extended the deadline after reviewing representations from various stakeholders. The scheme, which originally ran from October 1, 2025 to September 30, 2026, will now continue for a further three months — from October 1, 2026 to December 31, 2026 — on the existing terms and conditions, according to the ministry.

The New Amnesty Scheme 2025 is a one-time dispute resolution initiative aimed at reducing the backlog of court cases and promoting compliance under the erstwhile ESI Act. It provides a structured mechanism for employers to resolve legal disputes with the ESIC through out-of-court settlement, and the ministry described it as a practical and employer-friendly route that supports ease of doing business while upholding the rights of citizens served by the ESIC.

Source: DevDiscourse

How the settlement works

Under the scheme, ad-hoc assessments can be settled by paying the actual contributions along with interest — no damages will be levied. In cases where employers have already paid their dues, proceedings can be withdrawn on payment of 10 per cent of the disputed damages. Cases filed by the ESIC for non-submission of records or delayed payments, which were later complied with, will also be withdrawn with the permission of the court.

Court cases filed up to March 31, 2025 are eligible under the scheme, the official statement said. 'All concerned stakeholders are encouraged to make use of the extended window before it closes on 31.12.2026,' the Labour Ministry said.