Centre launches Employee Enrollment Scheme 2025 to boost workforce formalisation: All you need to know

The Centre on Saturday, November 1, launched the Employee Enrollment Scheme 2025, a major initiative aimed at boosting formal employment and enhancing citizen-centric service delivery. The scheme, introduced by Union Minister of Labour and Employment Dr Mansukh Mandaviya at Bharat Mandapam in New Delhi, coincided with the Employees’ Provident Fund Organisation’s (EPFO) 73rd Foundation Day.

According to the Ministry of Labour and Employment, the scheme - effective from November 1, seeks to simplify compliance procedures for employers while bringing more workers under the formal social security net. It allows employers to regularise employees’ provident fund contributions without retrospective penalties, encouraging voluntary adherence to labour regulations.

Employers get relief under new compliance framework

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Under the new framework, if an employer has not deducted an employee’s share earlier, they can now avoid remitting it retrospectively. Only a nominal penal damage of Rs 100 will apply. Officials said this measure aims to support small and medium enterprises while encouraging transparent and accountable employment practices.

The ministry added that the initiative reflects the government’s broader push to formalise the workforce and promote ease of doing business, in line with India’s employment and growth objectives.

'Reforms must directly benefit workers', says Mandaviya

Speaking at the event, Dr Mandaviya emphasised that every reform should deliver tangible benefits to workers and strengthen public trust in government systems. “Efficiency, transparency, and empathy must remain the driving forces of EPFO’s transformation. Every reform must reach workers in clear and simple terms so that the impact of change is felt directly in their lives,” the minister said.

He lauded EPFO’s contribution to India’s social security network and urged it to set global standards of service delivery as the country progresses towards Viksit Bharat 2047.

EPFO 3.0 to enhance efficiency and transparency

EPFO’s Central Provident Fund Commissioner Ramesh Krishnamurthi announced that the upcoming EPFO 3.0 platform would expand accessibility and efficiency through digital transformation. He said systems such as the Centralised Pension Payment System, Aadhaar and Face Authentication, and the revamped Electronic Challan-cum-Return (ECR) process have already improved transparency and convenience.

Krishnamurthi added that simplified withdrawal categories and the Viswas Scheme have made compliance easier for employers, contributing to smoother service delivery for millions of members.

Citizen-first approach under Viksit Bharat Rozgar Yojana

Labour Secretary Vandana Gurnani said EPFO’s transition towards a citizen-focused model aligns with the Prime Minister’s Viksit Bharat Rozgar Yojana, which targets 3.5 crore new jobs. She said the organisation’s digital initiatives and partnerships are aimed at delivering inclusive, technology-driven social security coverage.

During the event, EPFO signed Memoranda of Understanding with India Post Payments Bank (IPPB) to enable digital life certificate submissions and with Government e-Marketplace (GeM) for data sharing. The ministry said these collaborations would improve service delivery, reduce paperwork, and strengthen pension disbursal mechanisms.

Step towards inclusive, technology-driven labour reforms

The Employee Enrollment Scheme 2025 marks a significant step in India’s ongoing efforts to modernise labour governance. Officials said the initiative complements India’s vision of Viksit Bharat 2047, focusing on expanding job creation, ensuring transparency in labour systems, and promoting equitable growth through digital empowerment.