EPFO Gives Employers 6 Months to Fix PF Defaults for Just ₹100

Employees’ Provident Fund Organisation (EPFO) has officially launched the Employees’ Enrolment Campaign 2025 (EEC-2025).

This special initiative provides employers with a one-time, six-month compliance window to voluntarily enroll employees who were left out of provident fund coverage in previous years.

The campaign, which became operational on November 1, 2025, is scheduled to remain open until April 30, 2026.

By offering deep financial concessions and a simplified regularization process, the government aims to bring millions of workers into the organized sector while helping businesses clear their past defaults with minimal legal friction.

EPFO Amnesty Provisions: Significant Financial Relief for Businesses

The primary highlight of EEC-2025 is the substantial waiver of traditional penalties.

Under normal circumstances, non-compliance with EPF regulations can result in heavy damages, interest, and even prosecution.

However, during this six-month window, the EPFO has introduced the following incentives:

• Waiver of Employee Share: If the employer had not previously deducted the employee’s contribution from their wages, that share is now fully waived.
• Nominal Penal Damages: Instead of the usual percentage-based penalties, employers are only required to pay a nominal, lump-sum penal damage of ₹100 per establishment.
• Reduced Liability: Employers are only obligated to deposit their own share of contributions along with interest under Section 7Q and applicable administrative charges.

Eligibility and Scope of the Campaign

The scheme targets employees who joined an establishment between July 1, 2017, and October 31, 2025, but were not enrolled in the EPF scheme for any reason.

To qualify for the amnesty, the employee must be alive on the date the declaration is made. Additionally, they must still be in employment with the establishment at that time.

The window is open to:

1. Already Registered Establishments: Companies currently under the EPFO but who missed enrolling specific eligible staff.
2. Unregistered Establishments: New firms that have crossed the eligibility threshold (20 or more employees) but have yet to register. These firms can apply for coverage and declare their employees simultaneously.

EPFO Digital Integration and Face Authentication

To ensure the integrity of the process, the EPFO has integrated advanced technology into the EEC-2025.

Employers must file their declarations online via the EPFO portal.

Notably, a Face Authentication-based UAN (Universal Account Number) generation process has been introduced through the UMANG App.

This ensures that the benefits reach the correct individual and prevents identity-related fraud during the mass enrollment drive.

Synergy with “Social Security for All”

Union Minister for Labour & Employment, Dr. Mansukh Mandaviya, emphasized that this campaign is a “giant leap” toward the national vision of universal social security.

By encouraging voluntary compliance, the government expects to see a surge in enrollment numbers.

This growth is particularly expected among contractual and casual workers who are often excluded from formal benefits.

Furthermore, employers participating in the EEC-2025 may also become eligible for benefits under the Pradhan Mantri-Viksit Bharat Rojgar Yojana (PM-VBRY), which provides financial incentives for creating net new employment.

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