Description

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Picture Courtesy: PIB

Context

The Employees' State Insurance Corporation (ESIC) launched the SPREE 2025, initially set for July 1, 2025, to December 31, 2025, but extended until January 31, 2026, to maximize its reach.

What is SPREE 2025 ?

The Scheme for Promotion of Registration of Employers and Employees (SPREE) 2025 is an initiative by the Employees' State Insurance Corporation (ESIC) to bring more workers under the formal social security framework.

It is a time-bound opportunity for employers to voluntarily register their establishments and employees under the ESI Act, 1948, without facing penalties for past non-compliance.

Key Features of SPREE 2025

Scheme Duration

Originally from July 1, 2025, to December 31, 2025. It has been extended for one month until January 31, 2026, due to representations from employers and state governments.

'Amnesty' Clause

Provides a one-time opportunity for registration with full immunity from past liabilities.

No Retrospective Action

No demand for contributions for the period prior to registration.
No inspections or records will be demanded for the pre-registration period.
No interest, damages, or legal penalties will be levied for past non-compliance.

Digital Registration

Employers can register easily through multiple online portals: ESIC Portal, Shram Suvidha Portal, and the MCA Portal.

Effective Date of Coverage

Registration is considered valid from the date declared by the employer, ensuring immediate access to benefits for newly registered employees from that date.

About Employees' State Insurance Corporation (ESIC)

It is a statutory body under the Ministry of Labour and Employment, established under the ESI Act of 1948.

It manages the Employees' State Insurance (ESI) scheme, a self-financing social security and health insurance program designed to provide socio-economic protection to Indian workers.

Key Features

Eligibility Threshold: Mandatory for non-seasonal factories and establishments (like shops, hotels, and private medical/educational institutions) employing 10 or more persons.
Wage Limit: Coverage applies to employees earning a gross monthly salary of up to ₹21,000 (increased to ₹25,000 for persons with disabilities).
Contribution Rates:

Employee's Share: 0.75% of monthly wages.
Employer's Share: 3.25% of monthly wages.

Core Benefits

As per Section 46 of the ESI Act, insured persons (IPs) and their families are entitled to several benefits:

Medical Benefit: Full medical care for IPs and their dependents from day one of employment with no ceiling on expenditure.
Sickness Benefit: Cash compensation at 70% of wages for up to 91 days per year during certified sickness.
Maternity Benefit: Payable for 26 weeks (extendable by one month) at the rate of full wages.
Disablement Benefit:

Temporary: 90% of wages for the duration of the injury.
Permanent: Monthly payments based on the extent of loss of earning capacity.

Unemployment Allowance: Under schemes like Atal Beemit Vyakti Kalyan Yojana, eligible workers can receive relief (currently up to 50% of wages for 90 days) in case of involuntary job loss.
Funeral Expenses: A lump sum of ₹15,000 is paid to dependents or the person performing last rites.

Source: PIB

Attempt Daily Quiz

PRACTICE QUESTION

Q. With reference to the SPREE 2025 scheme, which of the following statements is/are correct?

1. It is an initiative of the Ministry of Finance to expand the tax base.

2. It offers retrospective benefits to employees from the date their employment began.

3. A key feature is the amnesty offered to employers on past dues and penalties.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 3 only

(d) 1, 2 and 3

Answer: b

Explanation:

Statement 1 is incorrect: The SPREE 2025 (Scheme for Promotion of Registration of Employers and Employees) is an initiative of the Ministry of Labour and Employment, implemented by the Employees' State Insurance Corporation (ESIC), not the Ministry of Finance.

Statement 2 is incorrect: The scheme explicitly states that no contribution or benefit will apply for any period prior to registration. Registration is valid from the date declared by the employer (or date of registration), meaning there are no retrospective benefits for employees for the time they were unregistered.

Statement 3 is correct: A key feature of SPREE 2025 is the amnesty offered to employers on past dues and penalties. Employers registering under the scheme are protected from inspections, demands for past contributions, interest, and penalties related to the period before their registration date.

Frequently Asked Questions (FAQs)

SPREE stands for Scheme for Promotion of Registration of Employers and Employees. It was launched by the Employees' State Insurance Corporation (ESIC), which operates under the Ministry of Labour & Employment, Government of India.

By bringing their employer into the formal system, employees gain access to comprehensive social security benefits provided by ESIC, including medical care, sickness benefits, maternity leave benefits, and disability coverage.

Formalization is crucial as it provides social security and legal protection to workers, increases the government's tax revenue, improves businesses' access to credit, and allows for better data-driven policymaking, ultimately boosting overall GDP.