New Delhi, October 30, 2026: The Employees’ State Insurance Corporation (ESIC) has extended its New Amnesty Scheme, 2025, until December 31, 2026, giving eligible employers and insured persons an additional three months to settle pending legal disputes. The scheme provides relief from damages in certain contribution-related cases and allows qualifying court proceedings to be withdrawn under specified conditions.
The Ministry of Labour and Employment announced the extension on October 29 following representations from stakeholders seeking more time to resolve disputes under the Employees’ State Insurance Act, 1948.
Originally introduced on October 1, 2025, the scheme was scheduled to end on September 30, 2026. ESIC has extended it from October 1 to December 31, 2026, without changing its existing terms and conditions.
The one-time initiative aims to reduce pending litigation and encourage employers to settle disputes rather than pursue prolonged court proceedings.
Under the scheme, employers facing eligible ad hoc contribution assessments can settle their cases by paying the actual contributions owed, along with applicable interest, without incurring damages under the relevant settlement provision.
Employers who have already paid the required contributions and interest but are contesting damages may also qualify for the withdrawal of eligible cases by paying 10% of the damages determined by ESIC, subject to the scheme’s conditions.
The scheme also provides for the withdrawal of certain cases filed by ESIC over non-submission of records or delayed payments where employers have subsequently fulfilled their obligations. Withdrawal of such proceedings requires permission from the relevant court.
Eligible insured persons may also receive relief in certain cases involving incorrect declarations that resulted in excess benefit payments. Under the scheme’s conditions, such cases may be considered for withdrawal if the insured person refunds the full excess amount and submits the required undertaking.
The relevant provision does not require interest on the refunded excess benefit amount. However, cases involving criminal conspiracy or forgery are excluded.
According to ESIC, the scheme applies to eligible court cases filed on or before March 31, 2025. The extension does not change this cut-off date or automatically make newer cases eligible.
Employers and insured persons seeking settlement can approach their nearest ESIC Regional or Sub-Regional Office with the required documents and undertakings. Further information is available on ESIC’s official website and through its toll-free helpline, 1800-11-2526.
The government said the scheme is intended to reduce the backlog of legal disputes, improve voluntary compliance and support ease of doing business.
However, the extension does not automatically cancel pending cases or waive all outstanding contributions, interest or penalties. Each settlement remains subject to the applicable eligibility requirements, payment conditions and court approvals.
Eligible employers and insured persons now have until December 31, 2026, to use the extended settlement window under the existing scheme.
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