SGCCI hails ESI Amnesty Scheme 2025 Approval

Surat, Gujarat –  In a significant development for industrial units across the country, the Government of India’s Minister of Labour and Employment, Dr. Mansukh Mandaviya, has approved the ESI Amnesty Scheme 2025 during the 196th Board Meeting of the Employees’ State Insurance Corporation (ESIC) held in Shimla on June 27, 2025. The move is set to provide substantial relief from litigation to industries—particularly in South Gujarat, where over 100 ESI-related legal cases have been pending.

President of the Southern Gujarat Chamber of Commerce and Industry (SGCCI), Nikhil Madrasi, hailed the decision as a major victory for industrial harmony and legal clarity.

“This is a welcome decision and a long-standing demand of SGCCI,” said Madrasi. “We personally submitted the proposal to Dr. Mandaviya in Delhi, and today, the government has delivered. Industries of South Gujarat, especially Surat, will now be free from unnecessary legal entanglements.”

The Special Provision for Retrospective Enrolment (SPREE) scheme, first introduced in 2016, has now been revived under the 2025 Amnesty Scheme. Institutions and factories employing more than 10 workers who get themselves registered under the ESI Act between July and December 2025 will be treated as legally registered from the date they declare.

Additionally, the interest rate for delayed payments towards the ESIC has been reduced from 25% per annum to 1% per month, easing the financial pressure on delayed contributors. The ESI AYUSH 2023 medical policy has also been revised to improve healthcare services for insured workers.

Litigation Load to Be Lifted

South Gujarat’s booming textile, diamond, and engineering industries had been facing a significant burden of ESI-related court cases. Madrasi confirmed that more than 100 cases in the region will be resolved under this scheme, bringing both administrative relief and cost savings.

“This will not only unclog the courts but also allow industries to focus on productivity and employment generation. We thank Dr. Mandaviya for listening to the industry’s voice,” Madrasi added.

SGCCI’s Active Role

Madrasi highlighted that the Chamber had been pushing for this scheme since August 2023, when SGCCI Labour Law Committee Chairman Sohail Sawani met with Dr. Mandaviya in Delhi. A follow-up meeting in June 2025 reinforced the demand, emphasizing the urgent need to resolve disputes under the ESI Act.

“It is through consistent dialogue and cooperation that we achieved this. We urge all eligible businesses to utilize the SPREE scheme and regularize their ESI obligations,” Madrasi urged.

With this amnesty now in place, SGCCI has launched an awareness drive to educate businesses across Surat and South Gujarat about the benefits of timely registration and compliance.