Voluntary Declaration and Simplified Compliance
Under the new scheme, all establishments — whether already registered or newly covered under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 — can declare and enroll employees who joined between July 1, 2017, and October 31, 2025, and are still employed as of the date of declaration.
Employers can register such employees through a dedicated online facility on the EPFO portal, linking their details to the Electronic Challan-cum-Return system. This move ensures transparency and ease of doing business, reducing administrative hurdles for companies while ensuring social protection for workers.
Waiver and Nominal Penalties for Employers
To encourage participation, the government has announced major relief measures. The employee’s share of provident fund contributions for the past period (from July 2017 to October 2025) will be completely waived, provided it was not deducted from their wages earlier.
Employers are required to pay only their own share of the provident fund contributions for the eligible period. Additionally, the usual penalties have been drastically reduced — employers availing this scheme will pay just a nominal lump-sum penal damage of ₹100.
Eligibility and Benefits under the Campaign
All establishments are eligible to participate in EEC 2025, irrespective of ongoing inquiries under Section 7A of the Act or related provisions of the Employees’ Pension Scheme, 1995. The campaign also provides immunity from suo motu compliance actions by EPFO for employees who have already left an establishment before the declaration date.
Employers who register or declare additional employees under this campaign will also become eligible for incentives under the Pradhan Mantri Viksit Bharat Rojgar Yojana, subject to the scheme’s conditions. This dual benefit aligns with the government’s broader agenda of promoting job creation and formal sector growth.
Promoting Ease of Doing Business and Worker Welfare
The Labour Ministry stated that the EEC 2025 will serve as a bridge between unregistered workers and the formal economy. It will help boost enrolment under social security while allowing employers to regularize their records with minimal financial and legal burden.
By simplifying compliance, the campaign supports India’s goal of universal social protection and strengthens confidence among small and medium enterprises (SMEs). It also reinforces the government’s commitment to expanding organized sector benefits such as EPF and Pension coverage to every eligible worker.
With millions of informal workers still outside the social safety net, initiatives like EEC 2025 mark a significant step toward inclusive labour reforms and sustainable workforce management.
