In a significant step towards simplifying employer compliance and strengthening social security in India, the Employees’ State Insurance Corporation (ESIC), under the Ministry of Labour & Employment, has officially launched outreach activities for the Amnesty Scheme 2025. Announced on September 1, 2025, as part of the ongoing Azadi Ka Amrit Mahotsav celebrations, this initiative aims to educate employers across the country about the scheme’s benefits and encourage widespread participation.
The scheme was earlier approved during the 196th ESIC Meeting held on June 26, 2025, in Shimla, chaired by Dr. Mansukh Mandaviya, Union Minister for Labour & Employment and Youth Affairs & Sports. It was formally announced on June 27, 2025, marking a crucial milestone in the government’s efforts to reduce litigation and enhance the ease of doing business.
What is the Amnesty Scheme 2025?
The Amnesty Scheme 2025 is a one-time dispute resolution window designed to clear the backlog of legal cases and promote better compliance with the Employees’ State Insurance (ESI) Act. The scheme will be in effect from October 1, 2025, to September 30, 2026, offering employers an opportunity to resolve disputes through out-of-court settlements.
As of March 31, 2025, more than 27,000 cases were pending in various courts related to ESI dues and compliance. The scheme addresses these cases in a structured, employer-friendly manner:
Ad-hoc assessments can be settled by paying the actual contribution and interest, with no damages levied.
Employers who have already paid dues can get their cases withdrawn by paying 10% of disputed damages.
Cases filed due to delayed records or payments, later complied with, can be withdrawn with court permission.
All court cases filed up to March 31, 2025, are eligible under this scheme.
Empowering ESIC Field Offices
One of the key features of the scheme is the empowerment of Regional Directors and Sub-Regional Officers to process case withdrawals during the amnesty period. This decentralised approach ensures faster resolutions and reduces bureaucratic delays, allowing employers to benefit from the scheme efficiently.
Previously, limited appeal provisions and lack of withdrawal powers meant that even after compliance, legal proceedings dragged on for years. Amnesty 2025 directly addresses these bottlenecks, providing clarity and closure.
Outreach Activities: Taking the Message to the Grassroots
To ensure that employers across sectors and regions are well-informed, ESIC has launched nationwide outreach activities through its field offices. These efforts aim to:
Educate employers about the benefits of the scheme.
Facilitate the application and settlement process.
Build trust and encourage long-term compliance.
This outreach is critical in ensuring the success of the scheme, especially among small and medium enterprises (SMEs), which often struggle with legal and regulatory complexities.
A Step Towards Inclusive, Employer-Friendly Governance
The Amnesty Scheme 2025 is not just a legal reform — it is a visionary initiative that balances enforcement with empathy. It reflects the government’s commitment to reducing legal burden, improving the business environment, and strengthening the social security net for workers.
As India continues its journey of economic growth and formalisation, initiatives like Amnesty 2025 reaffirm ESIC’s role as a progressive, responsive, and inclusive institution.
Employers are encouraged to stay tuned for detailed guidelines, which will be notified shortly before the scheme comes into effect.