The Employees’ State Insurance Corporation (ESIC) has approved the Amnesty Scheme 2025, a one-time mechanism designed to resolve long-pending disputes under the ESI Act. Announced at the 196th Corporation meeting in Shimla, chaired by Union Minister Dr. Mansukh Mandaviya, the scheme will operate between 1 October 2025 and 30 September 2026.
Under the scheme, employers can settle ad-hoc assessments by paying actual contributions and interest without incurring damages, and cases where dues have been cleared will be withdrawn on payment of a portion of disputed damages. Old disputes relating to non-submission of records or delayed payments may also be closed following compliance and court approval. Authority has been delegated to Regional and Sub-Regional Directors to process withdrawals, streamlining administrative procedures.
With nearly 27,000 cases pending in courts, the scheme seeks to reduce the legal backlog while encouraging compliance, marking a significant intervention in strengthening India’s social insurance framework.
Relevant question for policy stakeholders: To what extent can one-time amnesty schemes serve as sustainable tools for reducing judicial backlog in labour and insurance disputes, and what risks do they pose for rule-of-law consistency?
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https://www.pib.gov.in/PressReleasePage.aspx?PRID=2162763
