SPREE Scheme: The government has taken a major initiative to expand the Employees’ State Insurance (ESI) coverage across the country. On Friday, the government announced the re-launch of a scheme to promote registration of companies and employees. Union Labor Minister Mansukh Mandaviya said that this renewed scheme, named ‘SPREE’ (Scheme to Promote Registration of Employers/Employees), will be open from July 1 to December 31, 2025. It will provide a golden, one-time opportunity to unregistered employers and left-out workers, including contract and temporary employees, to enroll under the ESI Act.

The shield of ‘SPREE’ scheme

According to reports, the ‘SPREE’ scheme, originally launched in the year 2016, has helped in the registration of more than 88,000 employers (companies) and 1.02 crore employees. Under this scheme, companies registering during this period will be considered covered from the date of registration declared by them, while newly registered employees will get coverage from their respective registration dates. This important decision was taken at a meeting of the Employees’ State Insurance Corporation (ESIC) in Shimla, Himachal Pradesh on Friday.

This scheme simply means

For employers

If your company was not under the purview of ESI earlier, then now you can get registered without any penal action.

For employees

If you are working in a company that is not covered under ESI, or you yourself are a contract or temporary employee and are not eligible for ESI, then you can get it registered without any penal action. If you are not able to avail the benefits of ESI, then this is your opportunity to get enrolled under ESI.

Amnesty Scheme – 2025 was also approved

ESIC has also approved the ‘Amnesty Scheme – 2025’. This is a one-time dispute resolution window open from 1 October 2025 to 30 September 2026. Its purpose is to reduce litigation and promote compliance under the ESI Act. For the first time, cases related to damages and interest as well as disputes related to coverage have also been included in it.

This latest decision empowers Regional Directors to withdraw cases where contributions and interest have been paid. Cases that were filed against insured persons more than five years ago and where no notice was issued can also be withdrawn. This scheme will be a big relief for employers who have old ESI-related cases pending against them.

Decision to simplify damage structure

ESIC has also decided to simplify its damages structure. The old graded rates structure has now been replaced with a straight fixed rate. The maximum rate of damages in the earlier structure was 25 percent per annum, which has now been reduced to 1 percent per month on the amount payable by the employer. This change will enhance compliance, reduce disputes, and promote a more conducive regulatory environment.

ESIC also approved the proposal to delegate power to the Director General of ESIC to relax the submission of applications beyond the limit of 12 months from the date of leaving the job under Rajiv Gandhi Shramik Kalyan Yojana (RGSKY). This reflects the government’s commitment to the welfare of workers.