ESI SPREE 2.0 & Amnesty Scheme

ESI updates:

1. SPREE 2.0 – Scheme to Promote Registration of Employers and Employees

Objective: To bring unregistered employers and employees, particularly contractual and temporary workers, under the ESI fold.

Scheme Period: July 1, 2025 to December 31, 2025

Key Features:

  • One-time opportunity for unregistered employers to voluntarily register with ESIC.
  • Coverage will be extended from the actual date of joining or as declared by the employer.
  • Past success of the scheme (launched in 2016) saw over 88,000 employers and 1.02 crore employees registered.

Impact for Employers:
A proactive chance to regularize compliance without the fear of retrospective penalties or litigation.

2. Amnesty Scheme – 2025

Objective: A one-time dispute resolution mechanism to settle long-pending ESIC cases and encourage fresh compliance.

Scheme Period: October 1, 2025 to September 30, 2026

Key Features:

  • Applicable to cases involving disputes, interest, and damages under the ESI Act.
  • Regional Directors empowered to:
    • Close cases where dues and interest have been paid.
    • Withdraw proceedings in cases over 5 years old with no notices issued.
  • A simplified damages structure is now in place:
    • Uniform penalty capped at 1% per month, replacing the earlier graded system (which went up to 25% annually).

Benefits:

  • Reduction in litigation burden for employers.
  • Streamlined and predictable penalty regime.
  • Encouragement for defaulting establishments to resolve pending matters without penal consequences.

Other Notable Approvals

  • Relaxation in RGSKY Claims: The ESIC Director General may now approve delay condonation in unemployment benefit claims.
  • AYUSH Policy Implementation: ESIC to integrate Ayurveda, Yoga, Unani, Siddha, and Homeopathy (AYUSH) services in hospitals.
  • Recruitment of AYUSH Staff: Positions like Yoga therapists and Panchakarma technicians to be added across ESI hospitals.
  • Public-Charitable Hospital Partnerships: Pilots to extend ESIC coverage in underserved areas through OPD and emergency support.

Suggested Action Points for Employers:

  1. Review your employee database and identify unregistered workers.
  2. Avail SPREE 2.0 benefits before December 31, 2025.
  3. Revisit any pending ESIC disputes or litigation and prepare for the Amnesty Scheme launch in October 2025.