New EPFO Scheme Offers Amnesty to Boost Employee Social Security Coverage

In a significant move to expand social security and formalize the workforce, the Indian government has launched the "Employee Enrollment Scheme 2025". Announced by the Union Minister of Labour and Employment, Mansukh Mandaviya, on the 73rd Foundation Day of the Employees' Provident Fund Organisation (EPFO), this scheme provides a golden opportunity for employers to voluntarily enroll their eligible employees who were previously left out of the provident fund's ambit.The scheme, which became operational on November 1, 2025, and will run until April 30, 2026, is designed to be an amnesty-style campaign. It encourages employers to declare and enroll all employees who joined their establishment between July 1, 2017, and October 31, 2025, but were not registered with the EPFO for any reason.This initiative offers substantial relief to both employers and employees. For employers, the scheme drastically reduces the financial burden of past non-compliance. They are only required to pay their own share of the Provident Fund contributions for the specified period, along with any applicable interest and administrative charges. Crucially, the penalty for this past default has been reduced to a nominal, one-time fee of just₹100 per establishment.For employees, the primary benefit is the waiver of their share of the PF contribution for the past period, on the condition that this amount was not already deducted from their wages by the employer. This brings a large number of workers into the formal social security net, providing them with access to provident fund, pension, and insurance benefits without any historical financial liability.This initiative is a continuation of a similar successful campaign conducted in 2017 and is aimed at promoting the ease of doing business while strengthening the social security framework in the country. The government expects the scheme to facilitate wider EPF coverage and encourage transparency as India moves towards its goal of "Viksit Bharat 2047". All establishments, even those facing inquiries, are eligible to participate in this voluntary declaration scheme.