The Definitive Guide to Employees’ Enrolment Scheme 2025 (Targeting Employers/HR)
If you are an employer or HR professional in India, the government has just handed you a massive “Reset” button for your Provident Fund (PF) compliance.On November 1, 2025, the Ministry of Labour and Employment launched the(https://www.pib.gov.in/PressReleasePage.aspx?PRID=2178405). This isn’t just another regulation; it is a limited-time amnesty scheme designed to help businesses bring informal or missed employees onto the formal PF rolls without facing the crippling penalties that usually follow.
Whether you missed enrolling employees due to administrative errors, cash flow issues, or lack of awareness, this is your chance to fix it. The scheme runs until April 30, 2026, and it comes with two massive financial incentives: a ₹100 Damage Cap and an Employee Share Waiver.
Here is everything you need to know, explained in plain English.
1. The Game Changer: The ₹100 Damage Cap
In the world of EPF compliance, the “Contribution” (the actual PF money) is often manageable. The real killer is the “Damage” (Penalty) charged under Section 14B of the Act.
How it Usually Works
Under normal rules, if you are late in paying PF, the EPFO charges damages that can go up to 100% of the unpaid amount depending on the delay. If you missed paying ₹10 Lakhs back in 2018, you would typically owe another ₹10 Lakhs in penalties today. That doubles your cost instantly.
How it Works Under EES 2025
Under this scheme, that entire penalty structure is scrapped. Instead, you pay a flat lump-sum damage of just ₹100.
- It is per establishment, not per employee: Whether you are regularizing one employee or one thousand, the total penalty is just ₹100.
- It covers everything: This ₹100 is deemed as full compliance for damages under the EPF, EPS (Pension), and EDLI (Insurance) schemes.
This transforms a potential liability of millions into a token payment, removing the fear of financial ruin for coming forward.
2. The Financial Relief: Employee Share Waiver
The second major hurdle in regularizing past employees is the cost of the “Employee Share.”
The Problem
Legally, 12% of the PF comes from the employer and 12% comes from the employee’s salary. If you failed to enroll an employee three years ago, you obviously can’t go back and cut 12% from their salary checks from 2022. Under normal laws, the employer is forced to pay both shares (24% total) out of their own pocket.
The EES 2025 Solution
For the period covered by this scheme (July 1, 2017, to October 31, 2025), the government has waived the employee’s share entirely.
- You Pay: Only the Employer’s Share (12% + Admin Charges).
- You Save: The entire Employee’s Share (12%).
- Result: Your regularization cost is cut largely in half.
⚠️ The “Golden Rule” Warning
There is one critical condition for this waiver: You must NOT have deducted the money from the employee’s salary.
If your payroll records show that you deducted the PF amount from the employee’s wages but didn’t pay it to the EPFO, you are not eligible for this waiver. In fact, retention of employee share is treated as a Criminal Breach of Trust under Section 405 of the IPC, and the scheme does not protect you from that liability.
Bottom Line: This waiver is for employers who missed enrolling employees entirely—not for those who deducted the money and kept it.
3. Am I Eligible? (The Checklist)
Before you rush to file, ensure you meet the criteria outlined in the official FAQs.
✅ The Timeframe
The scheme covers employees who joined your establishment between July 1, 2017, and October 31, 2025.
✅ The “Alive and Employed” Rule
You can only declare employees who are currently alive and employed in your establishment on the day you file the declaration. You cannot use this scheme to fix records for people who have already resigned or left your company.
✅ Litigation Status
Even if your company is currently facing an inquiry (Section 7A) or a dispute regarding employee enrollment, you can still participate. By declaring the employees under this scheme, you can settle the dispute with the nominal ₹100 penalty instead of fighting a long legal battle.
4. How to File: A Simple 3-Step Process
The process has gone fully digital to ensure transparency.
Step 1: Audit Your Records
Identify all employees who joined after July 1, 2017, but were not enrolled in PF. Ensure they are still working with you.
Step 2: Generate UAN via Face Auth
You cannot just upload data on an excel sheet anymore. You must generate a Universal Account Number (UAN) for these employees using Face Authentication on the UMANG App. This ensures “Ghost Employees” cannot be added to the system.
Step 3: File Online Declaration
Log in to the EPFO Unified Portal. File the declaration for the amnesty period. The system will calculate the Employer Share + Interest + ₹100 Damages. Once you pay this, you are compliant.
Conclusion: Don’t Miss the Bus
The Employees’ Enrolment Scheme 2025 is a rare opportunity to clean up your compliance books with minimal financial impact. The window closes on April 30, 2026. After this date, the ₹100 cap vanishes, and the heavy penalties return.
Action Item for HR: Start your internal audit today. Identify the gaps, calculate the reduced liability, and get management approval to file before the rush in April.
