ESIC Expands ESI Coverage with SPREE Scheme

New Delhi, Jun 27 (PTI) Union Labour Minister Mansukh Mandaviya on Friday announced renewal of a scheme to promote registration of employers and employees to expand Employees' State Insurance (ESI) coverage across India.

Originally introduced in 2016, SPREE (Scheme to Promote Registration of Employers/Employees) has facilitated the registration of over 88,000 employers and 1.02 crore employees.

The renewed SPREE will be open from July 1 to December 31, 2025, offering a one-time opportunity for unregistered employers and left-out workers, including contractual and temporary staff, to enrol under the ESI Act, a labour ministry statement said.

Under the scheme, employers registering during this period will be treated as covered from the date of registration or as declared by them, while newly registered employees will be covered from their respective dates of registration.

By focusing on voluntary compliance rather than penalization, the scheme will seek to ease the litigation burden, encourage formal registration, and foster improved engagement and goodwill among stakeholders.

The decision was taken at a meeting of the Employees' State Insurance Corporation (ESIC) in Shimla, Himachal Pradesh on Friday.

The Corporation also approved Amnesty Scheme – 2025, a one-time dispute resolution window from October 1, 2025 to September 30, 2026 aimed at reducing litigation and promoting compliance under the ESI Act.

For the first time, disputes along with cases involving damages and interest regarding coverage are included.

Regional Directors have been empowered to withdraw cases where contributions and interest have been paid, and also to withdraw cases filed against insured persons over five years ago where no notices were issued.

The scheme aims to reduce the number of litigations by providing a mechanism for the resolution of disputes outside the court, offering employers an opportunity to come forward for a mutual settlement to promote ease of doing business, and earn the goodwill of all stakeholders.

ESIC also decided to simplify its damages framework by replacing the earlier framework of graded rates in favour of straight forward fixed rate.

Further, the maximum rate of damage in the earlier framework was 25 per cent per annum, which has now been reduced to 1 per cent for every month on the amount payable by the employer.

This change will promote compliance, minimize disputes and foster a more conducive regulatory environment.

The Corporation also approved a proposal to delegate powers to the Director General, ESIC, to grant relaxation in submission of applications beyond the 12-month limit from the date of job loss under Rajiv Gandhi Shramik Kalyan Yojana ( RGSKY) on case-to-case basis.

It also approved the revised AYUSH Policy of ESIC. This policy focuses on integrating traditional systems of medicine such as Ayurveda, Yoga, Unani, Siddha, and Homeopathy into the ESIC healthcare network.

The Corporation has approved the engagement of Yoga therapists and Panchakarma technicians/attendants in ESIC hospitals.

The Corporation approved a pilot project to improve healthcare access for ESI beneficiaries by partnering with charitable hospitals in underserved areas. These hospitals will provide comprehensive services—from OPD to emergency care—ensuring affordable, quality treatment while advancing ESIC's mission of social security and welfare.

The pilot will be initiated in a few districts of the country.

The 196th meeting of the ESI Corporation was attended by MPs Dola Sen, and NK Premachandra; Ashok Kumar Singh, Director General, ESIC; Principal Secretaries/Secretaries of state governments, representatives of employers, employees and senior officers from Ministry of Labour & Employment and ESIC.