ESIC SPREE Scheme: To further increase the Employees’ State Insurance (ESI) coverage in the country, the government has recently announced the re-launch of a scheme to promote registration of companies and employees. Union Labor Minister Mansukh Mandaviya said that this new initiative, named ‘SPREE’ (Scheme to Promote Registration of Employers/Employees), will run from July 1 to December 31, 2025.
This is a golden, one-time opportunity for all unregistered employers and left-out workers, including contract and temporary employees, to get enrolled under the ESI Act. This move will enable crores of employees to get the benefit of social security.
What is the ‘SPREE’ scheme
According to reports, the ‘SPREE’ scheme was originally launched in 2016. It has helped to register more than 88,000 employers (companies) and 1.02 crore employees so far.
Under this renewed scheme
Companies that register during this period will be considered to be under coverage from their date of registration or the date of registration declared by them. Newly registered employees will be able to avail themselves of the coverage from their respective registration dates. This important decision has been taken in a meeting of the Employees’ State Insurance Corporation (ESIC) in Shimla, Himachal Pradesh. Its objective is to bring more and more workers under the ambit of health and social security.
‘Amnesty Scheme – 2025’ also approved
ESIC has also approved the ‘Amnesty Scheme – 2025’. This is a one-time dispute resolution window running from 1 October 2025 to 30 September 2026. Its main objective is to reduce litigation and promote compliance under the ESI Act.
Salient features of this scheme
For the first time, it includes cases related to damages and interest as well as disputes related to coverage. This latest decision empowers Regional Directors to withdraw cases where contributions and interest have been paid. Apart from this, cases can also be withdrawn that were filed against insured persons more than five years ago and in which no notice was issued. This scheme will help in reducing the burden and providing an easy way for both employers and ESIC.
Damages structure simplified
ESIC has also decided to simplify its Damages Structure. Now, a straight fixed rate will be applicable instead of the old graded rates.
What has changed
In the earlier structure, the maximum rate of damages was 25 per cent per annum. This has now been reduced to 1 per cent per month on the amount payable by the employer. This change will promote compliance, reduce disputes, and promote a more conducive regulatory environment. Along with this, ESIC also approved the proposal to delegate powers to the Director General, ESIC, to give relaxation in submitting applications beyond the limit of 12 months from the date of leaving the job under Rajiv Gandhi Shramik Kalyan Yojana (RGSKY).
