The Employees’ State Insurance Corporation (ESIC) has reactivated its flagship SPREE (Scheme to Promote Registration of Employers and Employees) from July 1 to December 31, 2025, to widen the ESI network. This move targets unregistered employers and left-out workers—especially contractual and temporary staff—encouraging them to voluntarily enroll under the ESI Act. Registrations during this period will be back‑dated, covering contributions from the declared date, allowing workers immediate access to social security benefits.
Alongside SPREE, ESIC has rolled out a one-time Amnesty Scheme 2025, effective October 1, 2025 to September 30, 2026, aimed at resolving pending disputes and litigation. Regional directors have the authority to withdraw cases where dues—like contributions and interest—have been settled. Disputes older than five years without notice issuance may also be dropped, ushering in a streamlined dispute-resolution mechanism outside courts.
The scheme simplifies damages assessment by replacing the former graded penalty model with a single fixed monthly damage rate of 1% per month, significantly more lenient than the previous 25% per annum structure. This reform alleviates the compliance burden on employers and encourages resolution of pending claims.
Additionally, ESIC has approved supportive measures:
These initiatives reinforce ESIC’s shift from penalties to incentives, promoting voluntary compliance, reducing litigation, and expanding the formal social security net. They align with the government’s overarching goal of extending health and welfare coverage to unorganized and underserved workers, fostering a more inclusive labour ecosystem.
Understanding ESIC’s policies is crucial for aspirants preparing for government exams—especially those linked to labour laws, public administration, and social welfare. The SPREE relaunch and amnesty scheme showcase strategic measures to enhance compliance under the Employees’ State Insurance Act, 1948.
These schemes illustrate the government’s evolving approach: transitioning from punitive measures toward incentive-based systems for formalisation and dispute resolution, highlighting best practices in easing business compliance.
For positions in banking, administration, railways, policing, defence, and teaching, questions on labour law reforms, dispute mechanisms, and employee welfare reforms are frequently seen in GS and test of reasoning sections. This news offers direct, factual content that can aid in objective and essay writing segments.
Established under the Employees’ State Insurance Act, 1948, ESIC provides medical and social security benefits to workers in factories and establishments. This was part of India’s post-independence effort to protect labor rights and ensure workforce welfare.
First launched in 2016, the SPREE scheme successfully registered over 88,000 employers and 10.2 million employees during its initial phase—paving the way for current formalization efforts
Litigation often hampers the compliance process. Earlier punitive frameworks imposed heavy financial liabilities, discouraging employers. Scheme after scheme, ESIC has been shifting toward ease-of-doing-business, culminating in the 2025 amnesty mechanism.
Q1. What is the full form of SPREE?
A: SPREE stands for Scheme to Promote Registration of Employers and Employees.
Q2. Why has ESIC relaunched the SPREE Scheme in 2025?
A: The scheme is aimed at encouraging unregistered employers and left-out workers to voluntarily enroll under the ESI Act, thereby expanding social security coverage.
Q3. What is the duration of the Amnesty Scheme 2025?
A: The scheme is effective from October 1, 2025, to September 30, 2026, offering a one-time opportunity to resolve pending disputes and litigation.
Q4. What is the revised damage rate under the Amnesty Scheme 2025?
A: The penalty for delayed contributions is now fixed at 1% per month, replacing the earlier 25% per annum model.
Q5. What other measures were announced along with SPREE and the Amnesty Scheme?
A: Measures include extending RGSKY post-job-loss benefits, partnering with charitable hospitals, and integrating AYUSH healthcare into ESI services.
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