EPFO launches enrolment scheme to boost social security coverage

In a move to bring more workers under the ambit of social security, the Employees Provident Fund Organisation (EPFO) announced the ‘Employees’ Enrolment Scheme, 2025’ (EES 2025) on Monday.

 

The scheme encourages employers — both registered and new ones coming under the purview of the EPFO Act — to voluntarily declare and enrol eligible employees.

 

Employers can enrol all existing employees who joined the establishment between July 1, 2017, and October 31, 2025, and who are alive and employed on the date of the declaration.

 

They must not be enrolled in the EPF scheme earlier.

 

The scheme will be operational from November 1, 2025, to April 30, 2026, and is in continuation of an earlier scheme conducted in the year 2017, which was for the enrolment of left-out eligible employees from 2009 to 2016.

 

 

Under the scheme, the employee's share of provident fund contribution for the past period (from July 1, 2017, to October 31, 2025) stands waived, provided it was not deducted from the employee's wages. The employer is only required to pay its share for such a period.

 

“Employers availing this scheme shall be liable to pay a nominal penal damage of ~100 only as a lump sum, a significant reduction from the standard penalties for non-compliance,” said the labour ministry in a statement.

 

All the employers who get registered under the EES 2025, or declare additional employees under it, shall also be eligible to avail the benefits of Pradhan Mantri-Viksit Bharat Rojgar Yojana. It would be subject to certain terms and conditions under that scheme.

 

“No suo motu compliance action shall be initiated by the EPFO against the employers who avail the benefits of EES, in respect of such employees, who have already left the establishment as on the date of declaration,” the statement said.

 

Besides, the Central Board of Trustees (CBT) — which is the apex decision making body of the social security organisation — met on Monday and streamlined the criteria for withdrawal to just three. They are essential needs (illness, education, marriage), housing needs and special circumstances, from the existing 13. 

 

Members will now be able to withdraw up to 75 per cent of the total amount in the provident fund, including employee and employer share. The remaining 25 per cent of the contributions in a member’s account must be kept as minimum balance at all times. 

 

“Nearly 75 per cent of the EPF members had less than ~50,000 at the time of final settlement. The minimum balance provision has been made by keeping this in mind. This will enable the members to enjoy a high rate of interest offered by EPFO along with compounding benefits to accumulate a high value retirement corpus,” said a source, aware of the development. 

 

Meanwhile, withdrawal limits, too, have been eased with education withdrawals allowed up to 10 times and marriage up to 5 times from the existing limit of 3 partial withdrawals for marriage and education combined.

 

Members can also apply for withdrawals without specifying any reason under ‘special circumstances’ category as against the requirement to clarify the reasons for partial withdrawals.

 

The reasons earlier were natural calamity, lockouts / closure of establishments, continuous unemployment and outbreak of epidemic, among others.