The government on Thursday extended the ‘New Amnesty Scheme 2025’ until December 31, 2026, giving employers and insured persons additional time to resolve pending cases.

Following a review of representations from various stakeholders, the Employees’ State Insurance Corporation (ESIC) extended the scheme by three months, from October 1 to December 31, 2026. The scheme initially ran from October 1, 2025, to September 30, 2026, under the existing terms and conditions.

The New Amnesty Scheme 2025 offers a one-time dispute resolution mechanism to reduce the backlog of court cases and improve compliance under the erstwhile Employees’ State Insurance (ESI) Act.

The scheme enables employers to settle legal disputes with ESIC outside court through a structured process. It also supports the government’s broader objective of improving the ease of doing business while protecting the rights of citizens covered by ESIC.

Under the scheme, employers can settle ad hoc assessments by paying actual contributions and interest without incurring damages. Employers who have already paid their dues can seek the withdrawal of pending cases by paying 10 per cent of the disputed damages. The scheme also allows ESIC to withdraw cases involving the non-submission of records or delayed payments when employers subsequently comply with the requirements, subject to court approval.

An official statement said the scheme covers court cases filed up to March 31, 2025.

The extension gives eligible employers and insured persons more time to benefit from the scheme. The Labour Ministry urged all concerned stakeholders to use the extended window before it closes on December 31, 2026.

Meanwhile, Union Labour and Employment Minister Mansukh Mandaviya recently said ESIC provides health security to 25 crore people across India.