News

In a significant relief for employers and a potential lifeline for thousands of workers left outside the social security net, the Employees’ Provident Fund Organisation (EPFO) has announced a one-time six-month window to allow voluntary enrolment of eligible employees who were not covered under the Employees’ Provident Fund (EPF) scheme earlier.

The move, announced by the Ministry of Labour and Employment, is aimed at correcting past lapses without imposing heavy financial or legal penalties, while expanding formal social security coverage in line with the government’s long-term goal of “Social Security for All”.

The move is part of the newly introduced Employees’ Enrolment Scheme (EES) 2025, which will run for six months from November 2025. During this window, employers will have the option to enrol eligible workers who were not brought under EPF coverage between July 1, 2017, and October 31, 2025. Rather than penalising past lapses, the scheme is meant to offer a clean-up opportunity, allowing employers to fix earlier omissions without the risk of retrospective action.

One of the biggest incentives under EES 2025 is the relaxation on financial liabilities. In cases where employees’ PF contributions were not deducted earlier, employers will now be required to deposit only the employer’s share of contributions.

In addition, they must pay applicable interest under Section 7Q, standard administrative charges, and a nominal penal damage capped at Rs 100. The government has clarified that this will be treated as full compliance under all three EPFO schemes - EPF, EPS and EDLI. This significantly lowers the cost barrier for employers who may have avoided enrolment earlier due to fear of large penalties.

To ensure wider participation, EPFO will proactively contact identified defaulting employers through SMS and email, urging them to make use of this one-time opportunity. The organisation has emphasised that the window is time-bound and will not be extended.

Officials believe this outreach will help employers come forward voluntarily rather than face inspections or enforcement actions later.