SPREE Scheme 2025: Join ESI Without Penalty – Big Opportunity for Employers & Workers

The Indian Government has revived the SPREE Scheme (Scheme to Promote Registration of Employers/Employees), offering a fantastic opportunity to increase social security coverage. The union labour minister Mansukh Mandaviya announced the scheme that will be operational from July 1st to December 31st, 2025. The scheme will bring informal employers and employees into the fold of the Employees’ State Insurance (ESI) Act, along with contract and temporary workers, without penalties.

The SPREE Scheme was introduced in October 2016. It resulted in registering more than 88,000 employers and 1.02 crore employees. Under this revival businesses will be considered to be covered from the date they declare when they register and employees will be covered from their enrolment dates.

What It Means for Employers and Employees

Employers – Businesses previously exempt from ESI can register free from the potential for sanctions/penalties.

Employees – Contract workers, temporary workers or any other unregistered employees can register and utilise ESI benefits anywhere regardless of their contractor’s ESI compliance.

Amnesty Scheme 2025 & Simplified Compliance

ESIC has also initiated the Amnesty Scheme 2025 along with SPREE which will launch from October 1st 2025 to September 30th, 2026. This is a one-time resolution window meant to reduce litigation and improve compliance. For the first time, it covers disputes involving coverage, damages and interest. Old pending cases can be withdrawn, finally giving many employers relief that has been a long time coming.

Furthermore, ESIC reduced its damages structure and lowered the penalty from 25% per annum to just 1% per month on unpaid payments. This move aims to foster a more employer-friendly environment for regulatory compliance.

With these changes made, the government is publicly demonstrating its continued dedication to worker welfare and inclusive social security.