Last Updated on November 2, 2026 by Abhijit Divekar
What changed
The scheme first ran from 1 October 2025 to 30 September 2026. After requests from stakeholders, ESIC approved a three-month extension and told its regional offices to publicise it. The terms did not change, so the original instructions of 24 July 2025 still apply.
Because the first window closed on 30 September and the extension circular only came out in late October, some employers may believe the chance has gone. It has not, but the new window is short.
Which cases qualify
The cut-off is the same across the scheme: the case must have been filed up to 31 March 2025. Here is what each type of case needs. Section numbers are those used in ESIC’s scheme documents, which refer to the ESI Act, 1948.
| Type of case | What the employer must do | Damages |
|---|---|---|
| Coverage dispute, running unit | Produce records that support your plea of non-coverage, or of coverage from a later date. | None claimed |
| Coverage dispute, unit closed within 5 years (as on 31 March 2025) | Show records and pay the accepted dues: contribution, plus interest on it. | None claimed |
| Coverage dispute, unit closed over 5 years | Case pending over 5 years as on 31 March 2025, with no assessment made for the disputed period. ESIC’s regional office starts the withdrawal. | Not stated (case is withdrawn) |
| Contribution dispute (Sections 45A, 45AA, 75, 82, or Article 226 with no substantial question of law) | Seek the court’s permission for out-of-court settlement, apply in ESIC’s proforma, pay both shares of contribution and interest as per your records, and give an undertaking of future compliance. EPFO and Income Tax records can stand in for missing records. | None levied |
| Damages dispute | Applies where contribution and interest are already paid. If ESIC itself appealed to a higher court, it accepts the damages set by the lower court and withdraws the case once that amount is paid. | Pay 10% of the damages ESIC determined |
| Prosecution under Sections 85 and 85A | Pay contribution and interest as per your records, or alternative records, and be regular or up to date with ESIC dues. If you already deposited contribution and interest without protest, the Regional Director withdraws the case without waiting for a request. | None claimed |
| Old cases under Section 85(a) and (g), pending over 15 years, outstanding contribution up to Rs 25,000 | Closed unit: unit closed or employer untraceable. Running unit: make compliance up to date and pay 30% of the contribution and resulting interest. | Not stated as payable |
| Section 85(e), returns not submitted | Contribution and interest deposited for the period of the return. | Not stated as payable |
| Late declaration forms | Compliance made, any accident case settled, and the case pending over 3 years. | Not stated as payable |
What if your records are missing?
For contribution disputes, if you cannot produce any records and the assessment was made on wages other than those in your Regulation 32 register, you pay at least 30% of the assessed contribution.
For prosecution cases under Sections 85 and 85A, the scheme sets an order to follow: the monthly contribution paid before the default began, then wages declared in Form-01, then wages in the Social Security Officer’s survey report, then the applicable minimum wage.
What the scheme does not cover
- Self-registered employers in coverage disputes: cases where you registered yourself through Form-01 on the portal are excluded.
- Assessments on actual basis: where contribution was assessed on actual figures, the contribution and prosecution routes do not apply. Contribution disputes already assessed under ESIC’s instruction of 26 May 2003 are also outside the scheme.
- Cases filed after 31 March 2025.
- Ordinary current dues: the scheme is about settling listed cases. It does not describe any relief for regular monthly contributions.
How to use it before 31 December
- List your cases. Note the section, court, filing date and amount for each.
- Check the cut-off and the table above. Confirm which row each case falls under.
- Collect records. Wage registers, challans, and EPFO and Income Tax records if the originals are missing.
- Speak to your counsel and your ESIC regional or sub-regional office. Regional heads are empowered to sanction settlements without referring to headquarters.
- Apply early. ESIC’s instructions require cases to be settled within 6 months of the application. The circular does not say whether an application filed by 31 December is enough if settlement finishes later, so ask your regional office to confirm this in writing.
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Frequently asked questions
What is the last date for the ESIC amnesty scheme?
31 December 2026. ESIC extended it from the earlier end date of 30 September 2026.
Can I use it if I used an earlier amnesty scheme?
Yes. The scheme says it is also available to employers and insured persons who availed earlier amnesty schemes.
Does the amnesty waive contribution and interest?
Generally no. In most routes you pay contribution and interest as per your records, and the relief is on damages and on closing the case.
Does it apply if there is no court case against us?
The scheme is written around cases filed up to 31 March 2025. If you have no such case, it is unlikely to apply. Check with your ESIC regional office if you are unsure.
Does this change the ESI wage ceiling?
No. The extension circular does not deal with the wage ceiling. See our guide to the ESIC wage ceiling, and how it compares with PF in PF at Rs 25,000 and ESIC at Rs 21,000.
Official sources: ESIC extension circular, No. Q/6/2026-Rev.I (October 2026); ESIC instructions, No. P-11/14/Amnesty Scheme/2023-Rev.II (24 July 2025). This is a guide, not legal advice. Take advice on your own case.
Once old cases are settled, the scheme expects regular compliance. HRTailor can run monthly payroll and statutory filings for teams of 5 to 100.
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