Employers get six months to regularise EPF omissions without full penalties

The Ministry of Labour and Employment has introduced the Employees’ Enrolment Scheme (EES) 2025, a six-month initiative aimed at giving employers an opportunity to regularise employees previously omitted from the Employees’ Provident Fund (EPF) between 1 July 2017 and 31 October 2025. This scheme permits employers to bring eligible workers into the formal social security framework without facing full retrospective penalties.

According to the ministry, employers enrolling such workers will only be required to deposit the employer’s share of contributions, applicable interest under Section 7Q, administrative charges, and penal damages capped at a lump sum of ₹100.

The payment is considered full compliance under all three schemes administered by the Employees’ Provident Fund Organisation (EPFO). As stated, “The ministry said this payment will be treated as full compliance across all three EPFO-administered schemes.”

EES 2025 is described as a one-off, time-limited opportunity. The EPFO emphasises the importance of this initiative in progressing towards the government’s broader aim of ‘Social Security for All.’ In addition, the EPFO plans to actively contact known defaulting employers via SMS and email, encouraging them to benefit from the scheme’s relaxed compliance terms and rectify past defaults. This approach is expected to facilitate a smoother transition for employers seeking to regularise their employees’ status. EPFO has described EES 2025 as a one-time, time-bound opportunity and urged employers to use the window to bring uncovered workers into the formal social security framework, in line with the government’s vision of ‘Social Security for All."