Why in the news?

  • The Union government launched Employee Enrollment Scheme 2025 at the 73rd Foundation day of the Employees Provident Fund Organization.

Employee Enrolment Scheme 2025

  • Objectives:
    • Provide a one-time special window for employers to voluntarily enrol employees who were eligible under the EPF but were not registered/enrolled earlier.
    • Regularise past compliance under the EPF Act for the specified period, thereby expanding the social security net.
  • Eligibility Criteria:
    • For Employees:
      • Any employee who joined an establishment between 1 July 2017 and 31 October 2025 and was not enrolled under EPF for any reason. 
      • The employee must be alive and employed with the establishment at the date of declaration.
    • For Establishments:
      • All establishments, whether already under EPF coverage or not, are eligible to participate.
  • Key Features:
    • Employee share waived: If the employee’s share of contributions was not deducted previously for the period July 2017–Oct 2025, it stands waived under this scheme. Only the employer’s share is to be paid.
    • Employer’s obligation: Employer must pay their share of contribution for the past period, interest as per Section 7Q (if applicable), administrative charges, and a nominal penal damage of ₹ 100 (flat) per establishment covering all three EPF schemes.
    • No retrospective enforcement: On enrolment under this scheme, EPFO will not initiate suo motu compliance action for employees who have left service (provided declaration is made properly).
    • Linkage with other schemes: Employers who register/enrol under this scheme may become eligible for benefits under the Pradhan Mantri Viksit Bharat Rozgar Yojana (subject to its terms & conditions).
  • Significance:
    • Formalisation of workforce: By enabling left-out employees to enter the EPF system, the scheme strengthens the formal labour segment and augments social security coverage.
    • Reduced compliance burden: Offering a low-cost, simplified regularisation window with nominal penalty encourages voluntary compliance by employers
    • Social security impact: For the employees enrolled, benefits include provident fund accumulation, pension (EPS), deposit-linked insurance cover (EDLI) and thus enhancing retirement, survival and insurance protection.
    • Data & monitoring improvements: The initiative mandates use of electronic challan-cum-return (ECR) and face-authentication UAN generation (via UMANG app) for true digitalisation of records.