Centre launches Employee Enrolment Scheme 2025 to boost voluntary EPF coverage

In a major step toward expanding social security coverage and promoting voluntary compliance, the Government of India has launched the Employees’ Enrolment Scheme 2025, a special six-month initiative under the Employees’ Provident Fund Organisation (EPFO). The scheme was officially unveiled by Union Minister for Labour & Employment and Youth Affairs & Sports, Dr Mansukh Mandaviya, during the 73rd Foundation Day celebrations of the EPFO in New Delhi.

The Employee Enrolment Scheme 2025 is designed to provide a simplified compliance mechanism for employers and extend EPF benefits to all eligible employees who were previously left out of coverage. The scheme will remain open from November 1, 2025, to April 30, 2026, giving establishments across India a one-time opportunity to regularise their past compliance and ensure social security for their workforce.

What the new scheme offers

The scheme provides a special window for employers to voluntarily declare and enrol employees who were engaged between July 1, 2017, and October 31, 2025, but were not covered under the EPF Act. Employers can now register such employees through the EPFO portal, with simplified documentation and reduced penalties.

In a major relief, the employee’s share of contribution will be waived for the declared period if it was not deducted earlier. Employers are required only to deposit their own share, along with interest under Section 7Q, administrative charges, and a nominal ₹100 penal damage fee per establishment, which will be treated as deemed compliance across the three EPF schemes.

This move is expected to encourage employers—especially those in small and medium enterprises—to come forward voluntarily and bring their employees under the social security net without fear of heavy penalties or litigation. The government hopes the initiative will accelerate formalisation of the workforce and strengthen India’s social protection architecture.

Simplified compliance and wider inclusion

Notably, even establishments currently under inquiry or litigation under Section 7A, Para 26B, or Para 8 of EPS-1995 will remain eligible to participate in the scheme, with damages capped at ₹100. The EPFO has also clarified that no suo-motu action will be initiated against employers opting for voluntary compliance, ensuring a transparent and non-punitive framework.

The Employees’ Enrolment Scheme 2025 complements the government’s larger vision of creating a universal social security system that covers both formal and informal workers. It reflects the Centre’s commitment to ease of doing business while protecting employee rights.

EPFO 3.0 and recent reforms

The launch of the scheme follows a series of recent digital and procedural reforms approved by the Central Board of Trustees (CBT) in October 2025, including the rollout of EPFO 3.0, a next-generation digital platform. The upgraded system will integrate core banking, cloud-based technology, and API-driven modules to enable faster claim settlements, instant withdrawals, and multilingual self-service for over 30 crore members.

The EPFO has also simplified withdrawal rules—merging 13 categories into three: essential needs, housing, and special circumstances—and introduced the ‘Vishwas Scheme’ to help employers settle old disputes on delayed PF dues with reduced penalties.

Additionally, EPFO has partnered with India Post Payments Bank (IPPB) to allow pensioners to submit Digital Life Certificates (DLCs) from home, and appointed four professional fund managers to enhance investment efficiency and returns.

To promote long-term savings, the organisation has mandated that 25% of the PF balance be retained as a minimum reserve, allowing members to benefit from the current 8.25% annual interest rate and compounding growth.