SPREE Scheme 2025: One-Time Opportunity for Employers and Workers to Join ESI Without Penalty

By Siddhi Jain | Jun 30, 2025, 15:54 IST

Government Relaunches SPREE Scheme to Boost ESI Coverage—Register by December 31, 2025 & Avoid Penalties

In a landmark move to widen social security coverage across India, the government has relaunched the SPREE Scheme (Scheme to Promote Registration of Employers/Employees) under the Employees’ State Insurance (ESI) Act. This special scheme is a golden one-time opportunity for unregistered employers and workers—including contract and temporary employees—to enroll in the ESI system without facing any penalties or legal action.

Union Labour Minister Mansukh Mandaviya announced the revival of the SPREE scheme, which will be effective from July 1 to December 31, 2025. The decision was finalized at a key Employees’ State Insurance Corporation (ESIC) meeting held in Shimla, Himachal Pradesh.

What is the SPREE Scheme?

Originally launched in 2016, the SPREE scheme successfully facilitated the registration of over 88,000 employers and more than 1.02 crore employees under the ESI Act. It now returns with a renewed focus to cover the left-out workforce, providing them with medical benefits, insurance coverage, and other welfare measures under ESI.

Key Features of SPREE 2025:

✅ No penalty for employers who were previously unregistered.
✅ No legal action against employees or employers for past non-compliance.
✅ Companies and employees will be considered covered from the declared registration date.
✅ All types of workers, including contractual and temporary staff, can register.

Who Can Benefit?

For Employers:

If your establishment wasn’t earlier covered under ESI provisions, you can now register without worrying about penalties or retrospective charges.
It's a chance to ensure legal compliance and provide social security benefits to your employees.

For Employees:

If you're a worker (permanent, temporary, or contractual) in an unregistered establishment, you can now be brought under ESI without delay.
By registering, you can access affordable medical care, sickness benefits, maternity support, and accident compensation under the ESI Act.

Amnesty Scheme 2025 Also Approved

In addition to SPREE, the ESIC has also greenlit the Amnesty Scheme – 2025, which will be active from October 1, 2025, to September 30, 2026. This scheme is designed to:

Resolve old disputes and reduce ongoing litigation under the ESI Act.
Include cases involving interest, damages, and coverage disputes.
Allow withdrawal of cases where contributions and interest have already been paid.
Permit closure of cases that were filed more than five years ago with no recent activity.

This initiative aims to give a clean slate to employers, ensuring they can comply without the baggage of long-pending cases.

Major Reform in Damage Structure

The ESIC has taken another progressive step by simplifying the damage calculation structure:

Previous Structure	New Structure
Graded system with up to 25% p.a.	Flat 1% per month

This move is expected to:

Make penalty calculations more transparent and predictable.
Encourage timely compliance by employers.
Reduce disputes arising from confusing and high penalty rates.

Extended Relief Under RGSKY

In a worker-centric move, ESIC has delegated powers to the Director General of ESIC to allow relaxation in application deadlines under the Rajiv Gandhi Shramik Kalyan Yojana (RGSKY).
Previously, workers had to apply for benefits within 12 months of leaving their job. Now, delayed applications can be considered for approval, reflecting the government’s commitment to inclusive welfare.

Final Thoughts

The SPREE Scheme 2025 is not just a registration drive—it’s a lifeline for workers and a shield for employers. At a time when formalization of employment and social security are more critical than ever, this scheme offers a win-win opportunity for businesses and workers alike.

Whether you're a business owner seeking compliance or a worker hoping to secure your future, the time to act is now. Register under SPREE before December 31, 2025, and be a part of India's growing social security net.