Dr. Mansukh Mandaviya Chairs ESIC’s 196th Meeting, Approves Major Labour Reforms

In a landmark gathering held in Shimla, Himachal Pradesh, the Employees’ State Insurance Corporation (ESIC) convened its 196th meeting, chaired by Union Minister for Labour & Employment and Youth Affairs & Sports, Dr. Mansukh Mandaviya. The high-level meeting witnessed the approval of critical reform measures and policy initiatives aimed at expanding social security, enhancing healthcare delivery, and promoting voluntary compliance under the Employees’ State Insurance (ESI) Act.

The meeting was attended by a wide cross-section of stakeholders, including Members of Parliament Ms. Dola Sen and Shri N.K. Premachandra, Director General of ESIC Shri Ashok Kumar Singh, senior officials from state governments, and representatives of employers and employees.

SPREE Scheme Relaunch to Drive ESI Registrations Nationwide

A key decision was the relaunch of the SPREE (Scheme to Promote Registration of Employers/Employees), which will be active from 1st July to 31st December 2025. Originally introduced in 2016, SPREE had successfully enrolled over 88,000 employers and 1.02 crore employees into the ESI fold.

The 2025 edition is designed to bring unregistered employers, contractual, and temporary workers under formal social security coverage. Under the scheme:

• Employers registering during the scheme period will be considered covered from their self-declared date or the date of registration.

• Employees registered will be entitled to benefits from the date of their individual registration.

• Focus will be on voluntary compliance rather than penal actions, with the aim of reducing litigation and enhancing goodwill among stakeholders.

Amnesty Scheme 2025: One-Time Dispute Resolution Window

In a major move to reduce legal burden and promote compliance, the Corporation approved the Amnesty Scheme – 2025, effective from 1st October 2025 to 30th September 2026. For the first time, this scheme includes:

• Disputes involving coverage issues, damages, and interest payments.

• Empowering Regional Directors to withdraw cases where dues and interest have already been paid.

• Closure of cases older than five years involving insured persons where no notices were issued.

This one-time dispute resolution framework is designed to encourage settlement outside courts, enhance the ease of doing business, and foster a culture of cooperation between employers and the regulatory system.

Damages Framework Overhaul to Encourage Timely Compliance

ESIC also simplified its damages calculation model, replacing the earlier graded penalty system with a straightforward fixed rate. The maximum penalty has been revised from 25% per annum to 1% per month on unpaid dues.

This reform aims to:

• Reduce compliance costs

• Minimize litigation

• Promote a conducive regulatory climate

Reforms to Rajiv Gandhi Shramik Kalyan Yojana (RGSKY)

To enhance the scope and responsiveness of RGSKY, which provides unemployment benefits to insured workers who lose their jobs, the Corporation approved a proposal to delegate powers to the Director General, ESIC, allowing for relaxation in application submission timelines beyond the current 12-month limit on a case-by-case basis.

Revised AYUSH Policy: Promoting Holistic Healthcare

In a step toward integrative and preventive health services, the Corporation approved the Revised ESI Policy on AYUSH – 2023. The new policy seeks to mainstream:

• Ayurveda

• Yoga

• Unani

• Siddha

• Homeopathy

The updated policy encourages a holistic health model and recognizes the growing preference for traditional medicine systems in India. To operationalize this, the ESIC has approved the engagement of Yoga therapists and Panchakarma technicians/attendants in ESIC hospitals.

Pilot Project with Charitable Hospitals for Wider Access

To bridge healthcare gaps in underserved regions, the Corporation has greenlit a pilot project in partnership with charitable hospitals. These facilities will provide:

• Outpatient (OPD) services

• Inpatient and emergency care

• Affordable and comprehensive treatment options

The pilot will be rolled out in selected districts to evaluate the scalability and impact of such partnerships, with a focus on cost efficiency, access, and patient satisfaction.

A Holistic Strategy for Expanding ESI’s Reach and Impact

The 196th meeting of the Corporation reflects a paradigm shift in ESIC’s policy direction, embracing:

• Voluntary compliance over penal enforcement

• Dispute resolution outside litigation

• Health system modernization

• Integration of traditional wellness practices

• Improved access through public-private and charitable partnerships

Dr. Mandaviya emphasized that these reforms are aligned with the government’s vision of “Swasth Bharat, Samriddh Bharat” (Healthy India, Prosperous India) and reaffirmed ESIC’s commitment to protecting the working class, especially in times of economic or health crises.

“These initiatives strengthen our resolve to build an inclusive, efficient, and compassionate ESI system that upholds the dignity and welfare of every worker,” said Dr. Mandaviya in his concluding remarks.