A One-Time Opportunity for Employers
The Amnesty Scheme 2025 will come into effect on October 1, 2025 and remain valid until September 30, 2026. It provides employers with a structured mechanism to resolve disputes with ESIC through out-of-court settlements, thereby easing the burden on courts and companies alike.
As of March 31, 2025, around 27,000 cases were pending in different courts across India. The scheme offers relief by allowing employers to pay actual contributions and interest without additional damages. Cases where dues have already been paid will be eligible for withdrawal upon payment of 10% of disputed damages.
The scheme covers:
- Settlement of ad-hoc assessments with no damages if contributions and interest are paid.
- Withdrawal of cases where dues were already cleared, subject to 10% of disputed damages being paid.
- Cases involving delayed compliance or non-submission of records, which were later rectified, can also be withdrawn with court approval.
- All court cases filed up to March 31, 2025 qualify under the scheme.
Importantly, Regional Directors and Sub-Regional Officers have been empowered to process withdrawals during this period, eliminating bureaucratic hurdles that previously prolonged litigation.
Promoting Ease of Doing Business
Before the introduction of Amnesty 2025, employers had limited avenues to resolve cases, often leading to long and costly legal battles even after compliance. By creating a simplified settlement mechanism, the scheme aligns with the government’s vision of ease of doing business and reducing compliance burdens on enterprises.
Officials noted that the scheme balances employer relief with worker protection, ensuring that social security contributions are properly accounted for while avoiding unnecessary penalties.
Commitment to Social Security
The ESIC emphasized that Amnesty 2025 is not just about reducing litigation but also about fostering trust between employers, employees, and the social security system. By addressing long-pending disputes and offering an amicable resolution process, ESIC aims to build a more cooperative compliance culture.