Employee’s Enrolment Scheme 2025

The Employee’s Enrolment Scheme 2025 allows employers to voluntarily enrol uncovered workers under EPF, expanding social security and formalisation.

Employee’s Enrolment Scheme 2025

Syllabus: Governance (UPSC Prelims)
Source: ANI

Context

The Ministry of Labour and Employment has launched the Employee’s Enrolment Scheme 2025 to expand the coverage of the Employees’ Provident Fund (EPF) and encourage voluntary compliance among employers.

About the Scheme

The Employee’s Enrolment Scheme 2025 is a one-time special compliance window introduced by the Employees’ Provident Fund Organisation (EPFO) under the Ministry of Labour and Employment.

It allows employers to voluntarily enrol employees who were not registered under the EPF between 1 July 2017 and 31 October 2025.

Objectives

To extend social security coverage to all eligible employees under the EPF Act, 1952.
To encourage voluntary compliance and build trust between employers and the government.
To promote formalisation of the workforce and ensure financial protection for unregistered employees.

Key Features

Validity: Six months — from 1 November 2025 to 30 April 2026.
Coverage: Applies to employees left out of EPF coverage between July 2017–October 2025.
Financial Relief:
- No recovery of employee’s contribution if it wasn’t deducted earlier.
- Employers need to pay only their share of contribution and a nominal ₹100 penalty.
Legal Protection: Once an employer opts for voluntary compliance, no suo motu action will be taken by EPFO for past omissions.
Applicable even to establishments under inquiry (Section 7A or Paragraph 26B of the EPF Act).

Significance

Expands EPF coverage and strengthens the social security net for millions of workers.
Promotes ease of doing business by reducing compliance burden and penalties.
Supports labour formalisation and aligns with India’s vision of universal social protection.