Union Labour Minister Mansukh Mandaviya Chairs 196th ESIC Meeting in Shimla and Launches Key Schemes for Social Security Reform.
National
In June 2025, Union Labour and Employment Minister Dr. Mansukh Mandaviya chaired the 196th meeting of the Employees’ State Insurance Corporation (ESIC) in Shimla, Himachal Pradesh. The meeting highlighted major policy initiatives focused on social security expansion, healthcare improvements, and easing employer compliance.
- The high-level ESIC meeting was presided over by Dr. Mansukh Mandaviya, who also holds the Youth Affairs & Sports portfolio. The gathering aimed to assess current schemes under the Ministry of Labour & Employment (MoL&E) and introduce new strategies to broaden the ESIC's reach and impact.
- A major highlight of the meeting was the re-launch of the SPREE initiative—Scheme to Promote Registration of Employers/Employees. This scheme is designed to expand ESIC coverage across India by encouraging more businesses and workers to register under the social insurance system.
- The re-launched SPREE scheme will be active from July 1, 2025, to December 31, 2025. During this period, incentives and support mechanisms will be provided to increase voluntary registrations, thereby enhancing the ESIC network.
Main Point :- (i) Another key decision from the meeting was the approval of the Amnesty Scheme 2025, a one-time dispute resolution framework for employers. This window will be open from October 1, 2025, to September 30, 2026, allowing businesses to resolve outstanding compliance issues without penalties.
(ii) ESIC also announced a significant reform in its damages framework. The existing graded penalty system has been replaced by a simplified flat rate structure, aimed at reducing legal and financial burdens on defaulting employers and promoting easier resolution.
(iii) The maximum rate of damages has been substantially reduced—from 25% per annum to 1% for every month on the default amount. This shift is expected to increase compliance and lessen the financial strain on small and medium enterprises.
About ESIC (Employees’ State Insurance Corporation)
Director General : Ashok Kumar Singh
Headquarters: New Delhi
____________________________
