Major Relief for Employers: EPF Launches ‘Employees’ Enrolment Campaign, 2025′ with Nominal Penalty!

New Delhi | SGC Services – The Ministry of Labour and Employment has delivered a significant compliance opportunity for employers across India by notifying the Employees’ Provident Funds (Amendment) Scheme, 2025 (G.S.R. 749(E), dated October 10, 2025). This landmark amendment introduces the Employees’ Enrolment Campaign (EEC), 2025, a temporary yet crucial initiative aimed at substantially boosting EPF coverage and allowing businesses to regularize past non-enrolment of eligible employees without facing heavy penalties.

Key Campaign Details: A Six-Month Window for Compliance

The Employees’ Enrolment Campaign is effective for a six-month period, running from November 1, 2025, to April 30, 2026.

This amnesty scheme specifically targets employees who:

Joined an establishment between July 1, 2017, and October 31, 2025.
Are currently employed by the same employer as of the declaration date.
Were not previously enrolled under the EPF Scheme.

Unprecedented Relief for Past Defaults

The EEC 2025 introduces a massive reduction in the financial burden for employers seeking to correct past non-compliance:

Employee Share Waived: The employee’s share of the EPF contribution for the past period (July 1, 2017, to October 31, 2025) will be waived, provided it was not deducted from the employee’s wages earlier and not retained by the employer.
Nominal Damages: Instead of standard high penalties, the damages for defaults during the period of July 1, 2017, to October 31, 2025, are limited to a mere ₹100 (Rupees One Hundred Only) lump sum, applicable across all three schemes (EPF, EDLI, and EPS).
Employer Liability: The employer will only be required to pay their own share of contributions for the past period, along with statutory Interest (u/s 7Q) and Administrative Charges.

Simple Compliance Process

To avail of this scheme, employers must adhere to the following steps:

EPF Coverage: Employers not yet covered under the EPF Act must first apply for mandatory EPF coverage.
Employee Enrolment: Enroll all eligible employees using the UMANG App to create Aadhaar-authenticated Universal Account Numbers (UANs).
Payment: Pay the requisite contributions through the Electronic Challan-cum-Return (ECR) system.
Online Declaration: Submit an online declaration on the EPFO Portal, linking it to the corresponding ECR and paying the nominal ₹100 lump-sum damage fee.
Regular Compliance: Compliance for current periods starts from the month of declaration.

Clarity on Inquiries and Departing Employees

The campaign also addresses complex compliance scenarios:

Ongoing Inquiries: Establishments with pending inquiries (u/s 7A, Para 26B EPF, or Para 8 EPS) can still utilize the campaign. However, in such cases, both the employee’s and the employer’s full contributions, along with the Interest u/s 7Q, must be paid.
No Suo Motu Action: The EPFO will not initiate suo motu (on its own motion) compliance action for employees who left the establishment before the declaration date, provided all currently eligible employees are declared and no current dues are pending.

Added Incentive: PM-VBRY Benefits

Employers registering under the EEC, 2025, or declaring additional employees will also be eligible to avail of incentives under the Pradhan Mantri-Viksit Bharat Rojgar Yojana (PM-VBRY), subject to the scheme’s terms and conditions.

The Employees’ Enrolment Campaign, 2025, represents a golden opportunity for employers to formalize their workforce, rectify past lapses with minimal financial and legal consequences, and ensure their employees receive their rightful social security benefits. We urge all eligible establishments to take immediate note of this temporary window and ensure compliance before the deadline of April 30, 2026.

For an in-depth understanding of the notification and compliance requirements, employers are advised to refer to the official Employees’ Provident Funds (Amendment) Scheme, 2025 (G.S.R. 749(E), dated October 10, 2025).

Disclaimer: This blog post provides a general overview of the new campaign based on the notification. For specific compliance advice tailored to your establishment, please contact SGC Services.

Download Notification : EEC, EPFO, 2025