Government Launches New Employee Enrolment Scheme 2025 to Boost Formal Social Security Coverage

Economy

Updated on 03 Nov 2025, 06:23 am

Reviewed By

Aditi Singh | Whalesbook News Team

Short Description :

The Central government has rolled out the Employee Enrolment Scheme 2025, effective November 1, 2025. This voluntary scheme encourages employers to enrol eligible workers who were not previously registered under the Employees’ Provident Fund (EPF). Employers can pay only their share of contributions and a nominal penalty to regularise past non-compliance. This initiative aims to bring more workers into the formal economy and enhance social security benefits.

Government Launches New Employee Enrolment Scheme 2025 to Boost Formal Social Security Coverage

▶

Detailed Coverage :

The Ministry of Labour and Employment has officially launched the Employee Enrolment Scheme 2025, which became effective on November 1, 2025. This new initiative is designed to encourage employers to voluntarily enrol workers who joined their organisations between July 1, 2017, and October 31, 2025, but were not registered with the Employees’ Provident Fund (EPF) for any reason. A key benefit for employers is that they are not required to pay the employee's share of PF contributions if it was not deducted previously. They only need to pay their own share along with a small penalty of Rs 100. Employees who were employed during the specified period and are still with the company at the time of declaration are eligible. The scheme also accommodates establishments facing inquiries under specific sections of the EPF Act.

Impact: This scheme is expected to positively impact the Indian economy by increasing the number of workers covered under the formal social security system. It reduces compliance burdens for employers, potentially leading to better labour relations and increased formalisation, which can indirectly benefit businesses by providing a more stable workforce and reducing future liabilities. The government's ongoing efforts to expand PF coverage, possibly by raising the wage ceiling, further support this trend. Rating: 5/10

Difficult Terms: Employees’ Provident Fund (EPF): A mandatory savings scheme for salaried employees in India, providing retirement benefits and other social security measures. Ministry of Labour and Employment: The government ministry responsible for labour-related laws, policies, and welfare in India. Section 7A of the EPF Act, 1952: This section empowers the EPF authorities to recover any amount due from employers or employees under the EPF scheme. Paragraph 26B and Paragraph 8 of the EPF Act, 1952: These paragraphs relate to specific provisions within the Employees' Pension Scheme, 1995, and Employees' Provident Fund Scheme, 1952, concerning contributions and compliance.