ESIC Approves Amnesty Scheme 2025

Approved in the 196th ESIC Corporation Meeting held in Shimla, Himachal Pradesh; effective 1 October 2025 to 30 September 2026. A structured mechanism for employers to settle ESIC disputes outside courts. As of March 2025, about 27,000 cases were pending in various courts.

Overview

The Employees’ State Insurance Corporation (ESIC) has come out with an Amnesty Scheme 2025, effective from 1 October 2025 to 30 September 2026, thereby providing a structured mechanism for employers to settle legal disputes with ESIC outside the courts. Let us understand what this Amnesty Scheme is all about and how it will help employers.

Key Highlights

• One-time opportunity for employers to settle disputes and pending litigations under the ESI Act, 1948.
• Includes prosecution cases filed under Sections 84 & 85, and court cases under Sections 75 & 82 of the ESI Act, along with Article 226 matters.
• Units closed for more than 5 years or closed before 31 March 2025 can seek settlement.
• For functioning units producing valid records of non-coverage or later coverage, no damages will be charged.
• Contribution disputes under Section 45A and 45AA, or recovery in ESI Court, are covered.
• Damages-only disputes may be withdrawn if employers pay 10% of damages.

Why This Matters

• A clear, time-bound window to close legacy ESIC exposures.
• Relief for employers with functioning units backed by valid documentation.
• Practical solution for damages-only disputes through a 10% payment condition.

Steps for Employers

1. Identify applicability: prosecution, court cases, contribution disputes, closed units, or damages-only.
2. Seek court permission if a petition is already pending.
3. Prepare and submit relevant documentation and records.
4. Approach ESIC through the designated regional or sub-regional offices.
5. Conclude withdrawal/closure and pay any applicable amounts (e.g., 10% damages).

Expert Assistance

Karma Management Global Consulting Solutions Pvt. Ltd., headquartered in Santacruz, Mumbai, is among the top compliance solution providers, handling ESIC contributions amounting to crores of rupees every month. Employers facing such issues can engage Karma Management for early closure of pending ESIC cases.

For assistance, write to marketing@karmamgmt.com