EPFO-ESIC Launch Voluntary Enrolment Scheme

The Ministry of Labour & Employment has unveiled a significant six-month initiative, the Employees’ Enrolment Scheme, 2025 (EES 2025), aimed at aggressively expanding the coverage of organized social security across India.

Launched jointly by the Employees’ Provident Fund Organisation (EPFO) and the Employees’ State Insurance Corporation (ESIC), the scheme offers a critical, simplified window for employers to voluntarily enroll previously excluded eligible employees and regularize their past compliance records with minimal financial burden.

Targeted Amnesty and Compliance Window

The EES 2025 is operational from November 1, 2025, to April 30, 2026.

This special window primarily targets employees who were eligible for EPF membership but were left out of coverage between July 1, 2017, and October 31, 2025.

By encouraging employers to declare all existing and past eligible workers, the government seeks to ensure that millions of uncovered formal sector employees gain access to crucial retirement savings (EPF), pension benefits (EPS-95), and life insurance cover (EDLI).

The joint promotion with ESIC emphasizes that this move helps consolidate workers’ access to comprehensive social benefits, including medical care, sickness, and maternity benefits provided by ESIC, often managed through a common registration process.

Major Financial Incentives for EPFO Employers

The core feature designed to promote voluntary disclosure is the extensive financial relief offered to establishments.

Under the EES 2025, the employee’s share of the provident fund contribution for the entire past period (2017-2025) will be waived entirely, provided the employer never deducted this amount from the employee’s wages.

Employers are only required to remit their own share of the contributions, along with interest and administrative charges.

Furthermore, the penalty structure for non-compliance has been drastically simplified.

Establishments utilizing the scheme will be liable to pay a nominal, lump-sum penal damage of only ₹100 per establishment.

This represents a massive reduction from the standard, often punitive, penalties for non-adherence.

The nominal penalty applies even to establishments currently facing inquiries under various sections of the EPF Act.

However, they must utilize the EES 2025 window to benefit from this reduction.

The EPFO has assured that no suo motu compliance action will be initiated against participating employers. This facilitates a transparent path towards full compliance.

The Unified Vision for Social Security

Union Minister for Labour & Employment, Dr. Mansukh Mandaviya, positioned the EES 2025 as a “giant leap” towards achieving the goal of “Social Security for All.”

The scheme is expected to widen EPF and ESIC coverage significantly.

By simplifying the regulatory environment, it will also accelerate the formalization of the Indian workforce.

Additionally, employers registering under the EES 2025 may become eligible for benefits under the Pradhan Mantri-Viksit Bharat Rojgar Yojana.

This added incentive further encourages adherence to labor laws and promotes the ease of doing business.

The success of this six-month drive is critical to building a robust and comprehensive national social safety network.

Note: We are also on WhatsApp, LinkedIn, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.