EPFO introduces Amnesty Scheme 2026 for exempted PF trusts; employers get six months to regularise status

The Employees' Provident Fund Organisation (EPFO) has introduced the Amnesty Scheme, 2026, giving organisations operating exempted Provident Fund (PF) trusts under the Income Tax Act, 1961, a one-time opportunity to regularise their legal status.

“Employers, stakeholders and the general public are advised to take note of the scheme, which will remain open for a period of six months,” the PIB update mentioned.

The Finance Act, 2026 has aligned the income tax rules for recognised provident funds with the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act (EPF & MP Act), 1952.

Going forward, only provident funds that have obtained exemption under Section 17 of the EPF & MP Act will be recognised under the Income Tax Act, 2025.

Under the Amnesty Scheme, eligible establishments can receive exemption under Section 17 of the EPF & MP Act and Section 143 of the Code on Social Security, 2020.

Who can apply?

The Amnesty Scheme is meant for establishments that have been running a Provident Fund Trust recognised under the Income Tax Act, 1961, but do not have a formal exemption notification issued by either the Central Government or the State Government.

In simple terms, the scheme helps employers bridge a regulatory gap between their income tax recognition and EPF exemption status without facing prolonged legal proceedings.

The Amnesty Scheme was notified on 29 June, 2026 and is valid for a period of six months from the date of notification.

Two categories of eligible establishments

EPFO has divided eligible employers into two categories:

Category I

These include establishments seeking retrospective regularisation of their PF trust while either:

• already complying as an un-exempted establishment, or
• planning to continue future compliance as an un-exempted establishment.

Category II

These are establishments seeking retrospective regularisation and intending to continue operating as exempted establishments under the Code on Social Security, 2020.

Key benefits under the Amnesty Scheme

The scheme offers several relief measures for eligible employers.

1. Retrospective regularisation

Eligible PF trusts can obtain exemption status from the date the trust was established up to the notified cut-off date.

2. Relaxation of eligibility conditions

Certain requirements under the Code on Social Security, 2020 have been waived, including:

• minimum employee strength
• corpus size rules
• requirement of three years of prior compliance

3. Relief from legal proceedings

Pending assessments relating to provident fund dues, damages and interest will be withdrawn and treated as closed, provided employees have received contributions and interest equal to or higher than the statutory EPF rates.

Additionally, past finalised orders covered under the scheme will be treated as void ab initio, effectively nullifying earlier proceedings.

What employers need to do?

To avail the benefits, eligible establishments must complete certain formalities.

They are required to:

• Submit a formal application to the Central Government through the concerned EPFO Regional Office via email
• Alternatively, the employer can send an expression of interest to: rc.exemption@epfindia.gov.in
• Ensure that their financial accounts are audited by a Chartered Accountant
• Complete any special or compliance audit directed by EPFO authorities within three months of submitting the application.