ESIC Expands Reach: Revival of SPREE Scheme to Broaden ESI Coverage
The Employees’ State Insurance Corporation (ESIC) has relaunched its Scheme to Promote Registration of Employers/Employees (SPREE) to encourage unregistered employers and informal workers to enroll under the ESI Act. Announced by Labour Minister Mansukh Mandaviya during the 196th ESIC meeting in Shimla, the renewed initiative aims to enhance compliance and minimize litigation. The registration window will be open from July 1, 2025, to December 31, 2025, providing a significant opportunity for employers and workers to join the ESI network.
SPREE Scheme Overview
The SPREE scheme, initially launched in 2016, has successfully enrolled over 88,000 employers and more than 1.02 crore employees into the ESI network. The renewed version of the scheme offers a one-time opportunity for unregistered employers and informal workers, including temporary and contractual staff, to voluntarily join. Employers who register during this period will be covered from either their stated registration date or the actual date of enrollment. This initiative is part of a broader strategy to improve compliance among employers and ensure that more workers benefit from the protections offered by the ESI Act.
Amnesty Scheme 2025
In conjunction with the SPREE initiative, the ESIC has introduced the Amnesty Scheme 2025, which will be active from October 1, 2025, to September 30, 2026. This scheme aims to resolve long-standing disputes and alleviate the legal burden on employers by providing a pathway to settle pending issues outside of court. Notably, this amnesty window will include cases involving interest and damages for the first time. Additionally, it empowers Regional Directors to withdraw cases where dues have been cleared, further simplifying the compliance process for employers.
Revised Damages Framework
To enhance compliance, the ESIC has revised its damages framework. Instead of the previous graded penalty rates that could reach up to 25% per annum, employers will now face a simplified flat rate of 1% per month on delayed contributions. This change is expected to encourage greater compliance among employers and reduce legal friction. Furthermore, the ESIC has approved a proposal allowing the Director General to grant individual relaxations on job-loss claims filed beyond the 12-month limit under the Rajiv Gandhi Shramik Kalyan Yojana, providing additional support to workers.
Healthcare Initiatives and Future Plans
As part of its commitment to healthcare, the ESIC board has approved a revised AYUSH policy aimed at integrating traditional medicine systems, such as Ayurveda, Yoga, Unani, Siddha, and Homeopathy, into ESI hospitals. The board also authorized the hiring of yoga therapists and Panchakarma technicians across its health facilities. Additionally, the ESIC plans to launch a pilot project to deliver healthcare services in underserved districts by partnering with charitable hospitals to provide comprehensive care, from outpatient services to emergency care. This initiative reflects the ESIC’s ongoing efforts to enhance healthcare access for its beneficiaries.
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