This is to bring to your kind notice that, Employees’ State Insurance Corporation, under the Ministry of Labour & Employment, Govt. of India has launched a Scheme for Promotion of Registration of Employers and Employees (SPREE) 2025. It is pertinent to mention that all districts in Karnataka have been notified as implemented area under ESI Act & under the provisions of the said act, the employers are required to register the Factory/Establishment under the ESI Act within 15 days after the Act becomes applicable to the unit and also required to register their employees.

However, some of the employers as well as employees may have been left out from the coverage under ESI Act. To encourage such employers to cover themselves under the Act without any botheration of retrospective coverage and punitive action, the Scheme for Promotion of Registration of Employers and Employees (SPREE) 2025, has been launched with a special initiative aimed at expanding social security coverage under the ESI ACT. The scheme will be active from 1st July to 31st December 2025 and provides a one-time opportunity for unregistered employers and employees including contractual and temporary workers to enroll without facing inspections and demands for past dues.

The Scheme has the following features:

• (a) The employers can register their units and employees digitally through the ESIC portal, Shram Suvidha and MCA portal.
• (b) Registration will be considered valid from the date declared by the employer.
• (c) No contribution or benefit will apply for periods prior to registration.
• (d) No inspection or demand of past records will be made for the pre-registration period.

The scheme encourages voluntary compliance by removing the fear of retrospective penalties and easing the registration process. Prior to SPREE, non-registration within specified timeframes could result in legal action and demand for backdated dues. SPREE 2025 addresses these barriers, aiming to bring left-out establishments and workers into the ESI fold and ensure broader social protection.

Employers may register their establishment through:

• ESIC Portal – https://www.esic.gov.in
• Help for registration through ESIC Portal – Employer/Employee registration guide
• Shram Suvidha Portal – https://registration.shramsuvidha.gov.in/user/register
• MCA Portal – Click here to view

All the employers/employees are hereby informed to avail this opportunity & ensure that all the units/employees coverable under the ESI Act are registered availing this one-time benefit of the Scheme. If you need any assistance, feel free to contact us on sro-peenya@esic.nic.in or visit us on any working day.

Note: Employers already registered under ESI Act and who have been allotted Code Nos. may kindly ignore this communication.

The Government of Karnataka, vide Notification No. DPAL 08 SHASANA 2025, dated 15-04-2025, has amended the Karnataka Tax on profession, Trades, Callings and Employments Act, 1976.

The Act may be called as the Karnataka Tax on profession, Trades, Callings and Employments (Amendment) Act, 2025.

The Professional Tax with effect from 01-04-2025 will be as below:

Sl. No	Period	Monthly Gross Salary	PT Old Slab per month	PT New Slab per month
1	April to January	Rs. 25,000/- & Above	Rs. 200/-	Rs. 200/-
2	February	Rs. 25,000/- & Above	Rs. 200/-	Rs. 300/-
3	March	Rs. 25,000/- & Above	Rs. 200/-	Rs. 200/-

The Union Cabinet chaired by the Hon’ble Prime Minister, Shri Narendra Modi, has approved the Employment Linked Incentive (ELI) Scheme to support employment generation, enhance employability and social security across all sectors, with special focus on the manufacturing sector.

Under the Scheme, while the first-time employees will get one month’s wage (up to Rs 15,000/-), the employers will be given incentives for a period of two years for generating additional employment, with extended benefits for another two years for the manufacturing sector.

The ELI Scheme was announced in the Union Budget 2024-25 as part of the PM’s package of five schemes to facilitate employment, skilling and other opportunities for 4.1 Crore youth with a total budget outlay of Rs 2 Lakh Crore. With an outlay of Rs 99,446 Crore, the ELI Scheme aims to incentivize the creation of more than 3.5 Crore jobs in the country over a period of 2 years. Out of these, 1.92 Crore beneficiaries will be first timers, entering the workforce.

The benefits of the Scheme would be applicable to jobs created between 01 August 2025 and 31 July 2027. The Scheme consists of two parts with Part A focused on first-time employees and Part B focused on employers.

Part A: Incentive to First Time Employees

Targeting first-time employees registered with EPFO, this Part will offer one-month EPF wage up to Rs 15,000 in two instalments. Employees with salaries up to Rs 1 lakh will be eligible. The 1^st instalment will be payable after 6 months of service and the 2^nd instalment will be payable after 12 months of service and completion of a financial literacy programme by the employee. To encourage the habit of saving, a portion of the incentive will be kept in a savings instrument or deposit account for a fixed period and can be withdrawn by the employee at a later date.

The Part A will benefit around 1.92 crore first-time employees.

Part B: Support to Employers

This part will cover generation of additional employment in all sectors, with a special focus on the manufacturing sector. The employers will get incentives in respect of employees with salaries up to Rs 1 lakh. The Government will incentivize employers, up to Rs 3000 per month, for two years, for each additional employee with sustained employment for at least six months. For the manufacturing sector, incentives will be extended to the 3^rd and 4^th years as well.

Establishments which are registered with EPFO will be required to hire at least two additional employees (for employers with less than 50 employees) or five additional employees (for employers with 50 or more employees), on a sustained basis for at least six months. The incentive structure will be as under:

EPF Wage Slabs of Additional Employee	Benefit to the Employer (per additional employment per month)
Up to Rs 10,000*	Up to Rs 1,000
More than Rs 10,000 and up to Rs 20,000	Rs 2,000
More than Rs 20,000 (up to salary of Rs 1 Lakh/month)	Rs 3,000

*Employees with EPF wages up to Rs. 10,000 will get a proportional incentive.

This part is expected to incentivize employers for the creation of additional employment of nearly 2.60 crore persons.

Incentive Payment Mechanism

1. All payments to the First Time Employees under Part A of the Scheme will be made through DBT (Direct Benefit Transfer) mode using Aadhar Bridge Payment System (ABPS).
2. Payments to the Employers under Part B will be made directly into their PAN-linked Accounts.

With ELI Scheme, the Government intends to catalyse job creation in all sectors, particularly in the manufacturing sector, besides incentivizing youth joining the workforce for the first time. An important outcome of the Scheme will also be the formalization of the country’s workforce by extending social security coverage for crores of young men and women.

The Employees’ Provident Fund Organisation (EPFO) vide Circular No. WSU/MemberProfilePt1/E-965649/2025-26/22 dated 30/07/2025, has mandated the allotment / generation and activation of Universal Account Number (UAN) through the UMANG App, leveraging Aadhaar-based Face Authentication Technology (FAT).

Please find attached the copy of the EPFO Circular for your reference.

An employee who does not have a UAN and is entering employment for the first time must generate and activate their UAN through the UMANG App using Aadhaar-based Face Authentication Technology (FAT).

This initiative aims to simplify the onboarding process, enhance identity verification, and ensure seamless integration with Aadhaar for all new employees under EPFO coverage. The use of Face Authentication Technology (FAT) enables secure, contactless verification using the employee’s Aadhaar credentials, reducing dependency on physical documents.

Employers are advised to inform all new recruits about this mandatory process to ensure timely generation and activation of UAN before initiating any EPF contributions. The EPFO has also advised that this measure will further strengthen transparency, streamline member onboarding, and improve data accuracy within the EPF ecosystem.

For any queries or guidance regarding UAN generation and activation through UMANG App, employees may refer to the official EPFO communication or contact their HR/Payroll department for assistance.