EPFO Launches Amnesty Scheme 2026 for Provident Fund Trusts

New Delhi, India Jul 12, 2026 ALN: New Delhi: The Employees’ Provident Fund Organisation (EPFO) has introduced the Amnesty Scheme, 2026, providing establishments operating Provident Fund (PF) trusts under the Income Tax Act, 1961 a six-month window to regularise their legal status. This initiative is part of the EPFO's ongoing efforts to enhance compliance among employers and ensure that employees benefit from the protections and advantages provided under the Employees’ Provident Funds and Miscellaneous Provisions Act (EPF & MP Act), 1952.

The scheme has been notified on 29th June, 2026, and is valid till December 29, 2026. It represents a significant step towards addressing the challenges faced by many establishments that have been operating without the necessary formal exemptions, thereby contributing to a more structured and efficient provident fund ecosystem.

The Finance Act, 2026 has aligned income tax rules for recognised provident funds with the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act (EPF & MP Act), 1952. This alignment is crucial as it simplifies the legal framework governing provident funds and ensures that the benefits provided under these funds are consistent with the broader objectives of social security and employee welfare.

Henceforth, only provident funds which have obtained exemption under Section 17 of the EPF & MP Act will be recognised under the Income Tax Act, 2025. This change underscores the importance of compliance and the need for establishments to formalise their operations to safeguard the interests of their employees.

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. These provisions are designed to ensure that employees are provided with adequate social security benefits, thereby enhancing their financial and social well-being.

Eligibility Criteria

The Amnesty Scheme is meant for establishments which have been running a Provident Fund Trust recognised under the Income Tax Act, 1961, but don’t have a formal exemption notification issued by either the Central Government or state government. This lack of formal recognition has often led to complications for employers, as they navigate the regulatory landscape without clear guidance.

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. This category acknowledges the challenges faced by employers who have been operating in good faith but without the necessary formal exemptions.

Category II

These are establishments seeking retrospective regularisation and intending to continue operating as exempted establishments under the Code on Social Security, 2020. This category is particularly relevant for those establishments that wish to formalise their operations and enhance the benefits provided to their employees.

Key Benefits of the Amnesty Scheme

The Amnesty Scheme offers the following 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. This provision allows establishments to rectify their status without facing penalties for prior non-compliance.
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. This flexibility is aimed at encouraging more establishments to come forward and regularise their operations.
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. This measure is particularly significant as it alleviates the burden of legal disputes that can hinder business operations.

Application Process

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

• Submit a formal application to the Central government through the concerned EPFO Regional Office via email. This step is crucial as it initiates the process for regularisation.
• Alternatively, the employer can send an expression of interest. This option provides flexibility for those who may not be ready to commit to a full application immediately.
• Ensure that their financial accounts are audited by a Chartered Accountant. This requirement is in place to ensure transparency and accountability in the financial dealings of the establishment.
• Complete any special or compliance audit directed by EPFO authorities within three months of submitting the application. This audit process is designed to ensure that the establishment meets all necessary compliance standards.

This initiative aims to streamline the compliance process for Provident Fund trusts and encourage establishments to regularize their status, thereby enhancing the overall effectiveness of the EPFO. By providing a structured framework for compliance, the scheme not only benefits employers but also safeguards the interests of employees who rely on their provident funds for financial security.

In conclusion, the EPFO's Amnesty Scheme, 2026 represents a proactive approach to addressing the complexities associated with Provident Fund trusts. It serves as a reminder of the importance of compliance in the realm of employee benefits and social security, and it encourages establishments to take the necessary steps to ensure that their practices align with the legal framework established by the government. The implications of this scheme could be far-reaching, potentially impacting thousands of employers and millions of employees across the country, thereby contributing to a more robust and secure financial future for all stakeholders involved.