The Employees’ Provident Fund Organisation (EPFO) has introduced the Amnesty Scheme, 2026, providing a one-time opportunity for establishments operating exempted Provident Fund (PF) Trusts to regularise their status. The Labour and Employment Ministry said that the Scheme will remain open for a period of six months.
The EPFO’s Amnesty Scheme 2026 applies to establishments that have been operating a Provident Fund Trust recognised under the Income Tax Act, 1961 but do not possess a formal exemption notification from the appropriate central or state government. The EPFO has introduced the Scheme as a one-time opportunity for these eligible establishments to regularise their status retrospectively. The Scheme aims to bring such trusts within a uniform statutory framework while ensuring compliance with the applicable legal provisions.
Why has EPFO introduced Amnesty Scheme 2026?
The Amnesty Scheme has been introduced to address compliance issues arising from income tax–recognized trusts that are yet to be covered or granted exemption under the EPF & MP Act, 1952, taking into account the provisions of the Finance Act, 2026.
The Finance Act, 2026 has aligned the Income Tax framework governing recognized provident funds with the statutory and administrative provisions of the Employees’ Provident Fund & Misc. Provisions Act, 1952. Recognition under the Income Tax Act, 2025 shall be available only to provident funds that have obtained exemption under Section 17 of Employees’ Provident Fund & Misc. Provisions Act, 1952. Amnesty shall be granted to such establishments retrospectively under Section 17 of the Act and Section 143 of the Code on Social Security, 2020.
An Exempted Provident Fund is an employer-managed PF scheme that manages its own provident fund contributions internally through a private trust instead of depositing them directly into EPFO.
The Scheme aims to bring establishments and trusts into compliance within a defined six-month period, primarily to protect the interests of the workers while waiving damages, interest and penalties for those that have already provided benefits equal to or better than the statutory Scheme.
The Scheme allows retrospective relaxation or exemption under specified conditions and ensures that all eligible employees receive statutory benefits. The measure is expected to resolve over 100 active litigation cases thereby benefiting thousands of trust members.
Validity of the EPFO Amnesty Scheme 2026
The scheme is valid for a period of six months from the date of notification. The Scheme was notified on June 29, 2026.
EPFO Amnesty Scheme 2026: Which are the eligible establishments?
There are two categories of eligible establishments.
Category 1: Establishments seeking retrospective trust regularization which have already started compliance as an unexempted establishment or are opting for prospective compliance as an unexempted establishment.
Category 2: Establishments seeking retrospective trust regularization that choose to continue operating as exempted establishments under the Code of Social Security, 2020.
Key benefits of EPFO Amnesty Scheme 2026
Exemption status and Trust recognition will be granted from the inception of the Trust up to the designated cut-off date.
Minimum employee headcount and corpus size rules are waived. The 3-year prior compliance rule is deemed satisfied.
Pending assessments for dues, damages and interest will be withdrawn and stand abated, provided member accounts received interest and contributions at par with or better than statutory rates. Past finalized orders will be treated as void ab-initio.
EPFO Amnesty Scheme 2026: What are the obligations of employer?
Eligible establishments shall submit a formal application addressed to the central government. The applications may be submitted through email to the concerned regional office. An expression of interest indicating its willingness for availing the Scheme can be emailed to rc.exemption@epfindia.gov.in.
Financial accounts must be audited by a chartered accountant. Special/compliance audits directed by EPF authorities must be completed within 3 months of the application.
