For a working individual, their Provident Fund (EPF) is not just a savings account, but a lifeline and a strong pillar of social security. It’s often seen that due to a lack of information or company negligence, millions of eligible employees are deprived of this security cover. To address this serious problem, the Employees’ Provident Fund Organization (EPFO) has launched a revolutionary initiative.
The Ministry of Labor and Employment has announced the “Employee Enrollment Scheme-2025” (EES-2025), which is a boon for employees and employers whose PF has not been deducted for any reason. This scheme provides a historic opportunity to correct past mistakes and secure their future financially.
Who will benefit from this
The primary objective of EES-2025 is to bring all eligible employees under the EPF ambit who have not yet joined this social security scheme. The EPFO has opened a special ‘compliance window’ for employers across the country for the next six months. Under this scheme, companies can easily enroll employees who were employed between July 1, 2017, and October 31, 2025, but who were not provided EPF benefits. This will act as an “amnesty scheme” for companies that previously failed to deduct PF from their employees. Now, they can voluntarily come forward and provide their employees with their rightful dues without getting embroiled in complex legal complications.
A nominal penalty of just ₹100
The most powerful and attractive feature of this new scheme is that if employers correct their past mistakes, they will only have to pay a nominal penalty of ₹100, instead of the hefty fines. Companies typically face hefty penalties, interest, and legal litigation for violating PF rules or making delayed payments. However, under EES-2025, the government has opened a significant avenue of relief.
Furthermore, in cases where employee contributions were not previously deducted from their salaries, employers will only be required to deposit their share, the interest prescribed under Section 7Q, and the necessary administrative fees. This means that the burdensome obligation to deposit employee contributions for previous years can be waived, significantly reducing the sudden financial burden on companies.
Why is this an opportunity for employees
This scheme offers a win-win situation for both parties. While employees will receive their pending PF balances for several years and the substantial compound interest earned on them, employers will be able to avoid hefty penalties and reputational damage during government surveys or surprise raids. Often, small and medium-scale companies used to shy away from depositing PF of old employees due to fear of legal complications, but now they can completely clean and update their records by using this special window.