From 1 November 2025, a special enrollment campaign has been opened that allows employers to declare and enroll workers who should have been in provident fund but were left out between July 2017 and October 2025. Under this limited period scheme, if an eligible worker is still alive and working with the establishment, the employer can now bring them into provident fund coverage with a surprisingly light penalty structure. The employees own contribution share for the past period can be waived, and the employer pays only a small fixed damage amount per establishment instead of facing full retrospective interest and penalty exposure. The campaign will run for six months and is clearly designed to nudge voluntary clean up rather than rely only on inspections and prosecutions.
For workers who were unofficially treated as informal staff even while working full time, this window could change their relationship with the company forever. Many such employees have long felt that they do the same work as regular staff but do not receive the same social security or retirement protections. Some feel hopeful that this campaign will finally give them a provident fund number, proof of service, and long term savings. Others are nervous that employers might selectively regularise only a few people, or pressure them to sign back dated documents to protect the company. There is also a layer of mistrust where workers wonder if coming into the formal net might trigger more taxes without seeing the full benefit.
For HR and compliance heads, this campaign is both an opportunity and a test. It offers a chance to correct old PF coverage gaps with minimal financial pain, but it also exposes where organisations knowingly or unknowingly bypassed the law for years. HR must work with management to identify all eligible employees, especially long serving workers in sales support, security, housekeeping, warehouse, and small branch roles who were kept outside PF. Transparent communication is critical, explaining to workers what enrollment means for their money and their future. Companies that use this window sincerely can signal that they are serious about social security compliance, not just avoiding penalties.
What steps should HR take to identify every left out worker and bring them into PF coverage fairly?
How can employers explain the benefits of PF enrollment so workers trust the change and stay engaged?
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7For workers who were unofficially treated as informal staff even while working full time, this window could change their relationship with the company forever. Many such employees have long felt that they do the same work as regular staff but do not receive the same social security or retirement protections. Some feel hopeful that this campaign will finally give them a provident fund number, proof of service, and long term savings. Others are nervous that employers might selectively regularise only a few people, or pressure them to sign back dated documents to protect the company. There is also a layer of mistrust where workers wonder if coming into the formal net might trigger more taxes without seeing the full benefit.
For HR and compliance heads, this campaign is both an opportunity and a test. It offers a chance to correct old PF coverage gaps with minimal financial pain, but it also exposes where organisations knowingly or unknowingly bypassed the law for years. HR must work with management to identify all eligible employees, especially long serving workers in sales support, security, housekeeping, warehouse, and small branch roles who were kept outside PF. Transparent communication is critical, explaining to workers what enrollment means for their money and their future. Companies that use this window sincerely can signal that they are serious about social security compliance, not just avoiding penalties.
What steps should HR take to identify every left out worker and bring them into PF coverage fairly?
How can employers explain the benefits of PF enrollment so workers trust the change and stay engaged?
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The HR department plays a crucial role in identifying employees left out of the Provident Fund (PF) coverage and bringing them under the scheme. Here's a step-by-step guide on how to do it:
1. Identify Eligible Employees: Review employment records to identify employees who were not enrolled in the PF scheme but should have been. Focus on long-serving workers in sales support, security, housekeeping, warehouse, and small branch roles who were kept outside PF.
2. Collaborate with Management: Work closely with management to ensure that all eligible employees are included. This may require discussions and negotiations with senior management to ensure their support.
3. Communicate Transparently: Once the eligible employees are identified, communicate with them transparently about the enrollment campaign. Explain the benefits of PF enrollment, such as long-term savings, social security, and retirement protections.
4. Handle Employee Concerns: Address any concerns employees may have about the change. Some may worry about increased taxes or being pressured into signing backdated documents. Assure them that the change is for their benefit and that they will not be forced into anything they are uncomfortable with.
5. Enroll in the PF Scheme: Once all concerns are addressed, proceed with the enrollment process. Ensure that all necessary documents are in order and that the process is carried out smoothly.
Remember, the goal is not just to avoid penalties but to demonstrate the company's commitment to social security compliance. It's important to handle this process with care and sensitivity to maintain trust and engagement among employees.
From India, Gurugram
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1. Identify Eligible Employees: Review employment records to identify employees who were not enrolled in the PF scheme but should have been. Focus on long-serving workers in sales support, security, housekeeping, warehouse, and small branch roles who were kept outside PF.
2. Collaborate with Management: Work closely with management to ensure that all eligible employees are included. This may require discussions and negotiations with senior management to ensure their support.
3. Communicate Transparently: Once the eligible employees are identified, communicate with them transparently about the enrollment campaign. Explain the benefits of PF enrollment, such as long-term savings, social security, and retirement protections.
4. Handle Employee Concerns: Address any concerns employees may have about the change. Some may worry about increased taxes or being pressured into signing backdated documents. Assure them that the change is for their benefit and that they will not be forced into anything they are uncomfortable with.
5. Enroll in the PF Scheme: Once all concerns are addressed, proceed with the enrollment process. Ensure that all necessary documents are in order and that the process is carried out smoothly.
Remember, the goal is not just to avoid penalties but to demonstrate the company's commitment to social security compliance. It's important to handle this process with care and sensitivity to maintain trust and engagement among employees.
From India, Gurugram
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