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New EPFO enrolment drive offers waiver, low penalty window

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The Ministry of Labour and Employment has launched the Employees’ Enrolment Campaign 2025, a time-bound initiative aimed at expanding social security coverage by bringing a large number of workers under the Employees’ Provident Fund Organisation framework, while offering significant compliance relief to employers .

The campaign will remain operational from November 1, 2025, to April 30, 2026, and is positioned as a continuation of earlier enrolment efforts undertaken by the Ministry. The initiative seeks to encourage both existing and newly covered establishments under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, to voluntarily declare and enrol eligible employees who were previously left out of the EPF system.

Under the scheme, employers are allowed to enrol all existing employees who joined their establishments between July 1, 2017, and October 31, 2025, provided such employees are alive and in employment on the date of declaration. The provision applies irrespective of the reasons for non-enrolment during the past period, effectively creating a clean compliance window for establishments.

One of the key features of the campaign is the waiver of the employee’s share of provident fund contributions for the retrospective period, subject to the condition that the amount was not deducted from wages earlier. In such cases, employers are required to pay only their own share of contributions, significantly reducing the financial burden associated with retrospective compliance.

In addition, employers availing the scheme are required to pay a nominal penal damage of ₹100 as a lump sum. This marks a substantial reduction from standard penalties typically levied for non-compliance, which often deter establishments from coming forward voluntarily.

The scheme has been made broadly inclusive. All establishments are eligible to participate regardless of whether they are facing inquiries under Section 7A of the Act, Paragraph 26B of the EPF Scheme, or Paragraph 8 of the Employees’ Pension Scheme, 1995. Furthermore, no suo motu compliance action will be initiated by the EPFO against employers availing the scheme in respect of employees who have already left the establishment as on the date of declaration.

Employers registering or declaring additional employees under the Employees’ Enrolment Campaign 2025 will also be eligible to avail benefits under the Pradhan Mantri–Viksit Bharat Rojgar Yojana, subject to conditions prescribed under that scheme. This linkage is expected to enhance the overall attractiveness of the enrolment drive.

Declarations under the campaign are required to be made through the online facility provided by the EPFO. Employers must indicate employee details and link the declaration to the Electronic Challan-cum-Return through which contribution payments are made, along with the lump-sum penal damage.

The government has indicated that the campaign is expected to significantly boost social security coverage for employees while enabling employers to regularise past records with minimal legal and financial exposure. The initiative is also aligned with broader ease-of-doing-business objectives by promoting voluntary compliance rather than punitive enforcement.

For detailed guidelines and procedural instructions, stakeholders have been advised to refer to official websites of the Ministry of Labour and Employment and the EPFO, or approach regional EPFO offices for clarification.

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