SPREE Scheme 2025: Big Boost for ESI Coverage—Register Without Penalty from July 1

Updated: 30-06-2025, 02.05 PM

June 30, 2025 — In a significant move to widen social security coverage across India, the government has re-launched the SPREE scheme (Scheme to Promote Registration of Employers/Employees), providing a golden opportunity for employers and workers to register under the Employees’ State Insurance (ESI) Act without facing any penalties.

EPFO 3.0

Union Labour Minister Mansukh Mandaviya officially announced the initiative, which will be open from July 1 to December 31, 2025. The scheme targets unregistered employers, contractual staff, and temporary workers who have been left out of the ESI system until now.

What is the SPREE Scheme 2025?

The SPREE scheme, first introduced in 2016, facilitated the registration of over 88,000 employers and more than 1.02 crore employees. The 2025 version extends the same benefits, allowing companies and employees to voluntarily register under the ESI Act with no penal action for previous non-compliance.

✅ For Employers:

Register your establishment without penalties or legal consequences
Declared date of registration will be considered as the effective coverage date
Encourages formalisation of employment

✅ For Employees:

Eligible for ESI medical and cash benefits after enrollment
Includes contract, temporary, and left-out workers
Get access to insurance, maternity, and unemployment benefits

Amnesty Scheme 2025: One-Time Legal Relief Window

Alongside SPREE, the Amnesty Scheme – 2025 has also been approved by the Employees’ State Insurance Corporation (ESIC). Running from October 1, 2025 to September 30, 2026, this scheme allows employers to resolve pending disputes related to:

Damages and interest
Coverage disputes under the ESI Act

Employers who have paid contributions and interest will now be eligible for withdrawal of legal cases. Even cases filed over five years ago without notice can be closed, reducing long-standing litigation and boosting compliance.

Simplified Damages Structure to Encourage Compliance

To make the ESI system more business-friendly, ESIC has approved a revised damage rate:

The earlier graded penalty system with rates up to 25% per annum has been replaced
Now a flat 1% per month penalty will be levied on unpaid dues
This simplifies the process, reduces disputes, and encourages timely contributions

Other Key Announcements

Relaxation under Rajiv Gandhi Shramik Kalyan Yojana (RGSKY):
The Director General of ESIC will now have the power to extend application deadlines beyond 12 months for job loss-related benefits under RGSKY.

These changes reflect a worker-centric approach by the government, aiming to make India’s labour insurance ecosystem more inclusive, transparent, and efficient.

Why This Matters

With a growing gig and contractual workforce, schemes like SPREE 2025 and the Amnesty window are crucial in ensuring workers are protected and employers are compliant without facing harsh penalties for past oversights.

Whether you’re a business owner, HR head, contractor, or unregistered worker, July 1 to December 31, 2025 marks the best time to come under the ESI safety net.

Author Profile

Kuldeep Singh Chundawat: My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.