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The Employees' State Insurance Corporation introduces the New Amnesty Scheme 2025 to withdraw prosecution and court cases filed against insured persons and employers up to March 31, 2025. The scheme applies to pending cases under sections 75, 82, 84, 85, 85A, and Article 226 of the Constitution of India. Eligible employers and insured persons must pay required contributions, interest, or specific settlement amounts without damages, and submit applications. The scheme remains in force from October 1, 2025, to September 30, 2026.
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Ask about this circular
No. P-11/14/Amnesty Scheme/2023-Rev.II
Date: 24.07.2025
All Additional Commissioners/Regional Directors/SRO I/c ESI Corporation Regional Office/Sub-Regional Office
Sub: The New Amnesty Scheme, 2025 For withdrawal of the Criminal Cases Filed against Insured Persons and Employers and settlement of cases filed by Employers u/s 75 and 82 of ESI Act 1948-regarding
Sir /Madam,
The Corporation in its $196^{\text{th}}$ meeting held on 27.06.2025 has approved the launch of the Amnesty Scheme 2025:
To reduce the number of litigation by providing a mechanism for resolution of disputes outside the court.
To earn goodwill of stakeholders and thus enhance the brand image of the Corporation.
Keeping in view above factors, the New Amnesty Scheme 2025 provides the opportunity for the withdrawal of prosecution cases filed u/s 84 and 85 of ESI Act and court cases u/s 75 and 82 of the ESI Act and Article 226 up to 31.03.2025 subject to following terms and condition
The scheme shall include all cases filed in which the employer has disputed the coverage which may be settled subject to the following conditions:
In case of closed units:
Unit is closed for more than 5 years as on 31.03.2025
Case is pending before Hon'ble Courts for more than 5 years as on 31.03.2025
No assessment has been made for the period under dispute and litigation up to the date of commencement of Amnesty Scheme 2025
RD/Incharge will initiate action to instruct the counsel to make the statement before Hon’ble Court for withdrawal/settlement in terms of Amnesty Scheme.
Unit closed within 5 years as on 31.03.2025:
Employer showing record to substantiate coverage.
He pays the accepted dues i.e. contribution, interest on the accepted contribution.
No damages will be claimed.
In such cases where the assessment has been made on assumed basis, such cases may also be considered provided the employer produces records in support of accepted dues.
In case of running units:
If the unit is functioning and the employer produces records to substantiate his plea regarding non-coverage or coverage from a later date, same may be accepted.
No damages will be claimed in such cases.
submitting Form-01 on the portal (SSP/ESIC) will be excluded from the Amnesty Scheme.
This Scheme shall also include cases in which the employer has disputed the determination of contribution under section 45A or under section 45AA or recovery of contribution, in the Employees' State Insurance Court, u/s 75 of the ESI Act, made the appeal u/s 82 of the Act or under article 226 of Constitution of India (where substantial question of law is not involved), up to 31.03.2025 subject to the fulfilment of the following conditions:
(i) The employer shall file a petition before the Hon’ble Court where he has raised the dispute and seek permission of Hon’ble Court for out of Court settlement of matter under litigation. If the Court allows, then the matter shall be settled as per the scheme. The employer shall apply for the Amnesty scheme in the proforma prescribed by the corporation
(ii) The employer shall pay both the Employees' and Employers' share of contribution and interest on the revised amount of as per their records, which he shall produce before the assessing officers, if the contribution has been assessed on assumed wages and he shall comply with other provisions of the Act.
(iii) In case all the records required for assessment of contribution are not available with the employer, they shall produce alternative records such as EPFO and Income Tax Record etc. and shall pay the contribution accordingly as per these records.
(iv) However, if the employer is not able to produce any of the records and the assessment has been made in respect of wages other than the wages shown in Regulation 32 Register, he shall pay the contribution which shall be not less than 30% of the assessed amount of contribution. The cases where assessment has already been made as per Hqrs instruction No. P-11/13/97- Ins-IV dated 26.05.2003 or where the contribution has been assessed on actual basis will not fall under the purview of the scheme.
(v) The employer shall pay Interest as per the revised contribution.
(vi) No damages shall be levied.
(vii) The employer shall also furnish an undertaking to the Corporation to the effect that he/she shall be regular in compliance in the provisions of ESI Act in future or else he/she shall forfeit the right to avail of such amnesty scheme.
(i) There are cases where employer has disputed levy of damages in the court of law after making payment of contribution and interest. These cases filed up to 31.03.2025 may also be considered for withdrawal with the condition that the employer has to pay 10% (Ten Percent) of the damages as determined by the Corporation. If Employer has gone in Higher Court against the decision of Lower Court, RO/SRO may make a statement before the Hon’ble Court that the Corporation would accept the 10% of the damage amount under the Amnesty Scheme.
(ii) Similarly, where the Corporation has gone in higher Court against the decision of EI Court/High Court, damages as ordered by the lower court should be accepted and the case may be withdrawn by the Corporation after realizing the amount of the damages as ordered by the lower court.
(1) Case filed against the insured persons under section 84 of the ESI Act for giving wrong declaration/statement resulting in excess payment to him/her may be withdrawn subject to the condition that:
a. The entire amount paid in excess to the Insured person is refunded in full by him/her to the Corporation
b. No Interest will be claimed
c. An undertaking is also given by Insured Person to the effect that he/she would not give wrong declaration/statement in future
d. Where the whereabouts of IP is not known and notices cannot be served despite best efforts, all such cases which are pending for more than 5 years shall be withdrawn where the complaints are strictly under the ESI Act.
e. Cases involving criminal conspiracy and forgery will not be covered under the Scheme.
(2) Cases filed against the employer under section 85 and 85A of the ESI act up to 31, March 2025
Prosecution cases filed against the employer u/s 85 and 85-A of the ESI Act may be withdrawn subject to the following conditions:
(i) If the contribution has been assessed on assumed wages, the employer shall pay both the Employees' and Employers' share of contribution along with Interest as per their records, which he shall produce before the assessing officers.
(ii) In case the relevant records are not available with the employer, they shall produce alternative records such as EPFO and Income Tax Records etc and shall pay the contribution accordingly as per these records.
(iii) However, if the employer is not able to produce any of the records, he shall pay contribution based on following, in the same order, (i.e. only in cases where the records as per option 'a' is not available, down below alternatives in the same order is to be exercised for assessing dues.):
OR
OR
OR
(iv) The cases where the contribution has been assessed on actual basis will not fall under the purview of the scheme.
(v) The employer will pay the interest as per the contribution paid by him as per his records.
(vi) No Damages will be claimed.
(vii) In all such cases where employer has already deposited both contribution and interest without protest, shall be withdrawn by the Regional Director without waiting any request from the employer.
(viii) It will be subject to the condition that the employer is regular in compliance or the employer makes the up to date compliance of ESIC dues.
