Employee’s Enrolment Scheme 2025: Expanding EPF Coverage for Inclusive Social Security

Employee’s Enrolment Scheme 2025: Expanding EPF Coverage for Inclusive Social Security

Context:

The Ministry of Labour and Employment has launched the Employee’s Enrolment Scheme 2025 to expand Employees’ Provident Fund (EPF) coverage and promote voluntary compliance among employers.
The scheme focuses on formalising the workforce and ensuring financial security for employees who were previously not part of the EPF system.

About the Employee’s Enrolment Scheme 2025

What is it?

It is a one-time special compliance window under the Employees’ Provident Fund Organisation (EPFO).
Allows employers to voluntarily enrol eligible employees who were not covered under EPF between 1 July 2017 and 31 October 2025.

Organisation Involved:

Aim of the Scheme:

Extend social security coverage to all eligible employees under the EPF Act, 1952.
Encourage voluntary compliance by employers and build trust between businesses and regulators.
Promote formalisation of the workforce and provide financial protection to unregistered employees.

Key Features:

Operational Period: Six months from 1 November 2025 to 30 April 2026.
Eligibility: Employees employed between July 2017 and October 2025 who were left out of EPF coverage.
Waiver of Employee Contribution: Employee contribution waived if not deducted earlier.
Employer Contribution & Nominal Penalty: Only employer’s share plus ₹100 penalty per employee is required.
Applicability: Includes establishments under inquiry under Section 7A or Paragraph 26B of the EPF Act.
Non-Penal Action: Once voluntary compliance is made, EPFO will not take suo motu action for past omissions.

Significance of the Scheme:

Expands EPF coverage and strengthens the social security net for millions of workers.
Reduces compliance burden and potential penalties, enhancing ease of doing business.
Promotes workforce formalisation and aligns with the government’s goal of universal social protection.

Conclusion:

The Employee’s Enrolment Scheme 2025 is a strategic initiative to integrate previously unregistered employees into the EPF system.
It ensures financial security, encourages voluntary compliance, and supports the formalisation of the workforce, advancing India’s vision of inclusive social protection.

Source : ANI