EPFO Launches 6-Month Amnesty Scheme for Exempted PF Trusts; Check Eligibility and Key Details

The Employees' Provident Fund Organisation (EPFO), under the Ministry of Labour & Employment, has introduced the Amnesty Scheme, 2026. The initiative provides a one-time, six-month window for organisations operating private or exempted Provident Fund (PF) trusts to regularise their statutory status. Announcing the move on Sunday, the government stated that the scheme is designed to help employers bridge regulatory gaps and avoid prolonged legal disputes.

Targeting Regulatory Gaps

The scheme specifically targets establishments that have been operating PF trusts recognized under the Income Tax Act, 1961, but do not possess a formal exemption notification from either the Central or State government. EPFO Introduces Faster PF Transfer Process; Here’s How It Works.

Following its official notification on June 29, 2026, the amnesty program will remain open for application for exactly six months. Eligible employers are divided into two distinct groups:

• Category I: Establishments seeking retrospective trust regularisation that have already transitioned-or are opting to transition-to standard, un-exempted compliance moving forward.

• Category II: Establishments seeking retrospective trust regularisation that choose to continue operating as independent, exempted trusts under the new Code on Social Security, 2020.

Alignment with the Finance Act

This regulatory relief follows major legislative updates introduced through the Finance Act, 2026. The Act aligned the Income Tax framework governing recognized provident funds with the core provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. EPFO Portal Revamp: 10 Changes in PF Claims, Withdrawals and Transfers Every Member Should Know.

Under these revised rules, tax recognition will only be granted to private corporate provident funds that hold a valid legal exemption under Section 17 of the EPF Act. Without this amnesty window, many legacy corporate trusts risked losing their tax-exempt status due to missing bureaucratic notifications.

Legal Relief and Waivers

To encourage compliance, the Ministry of Labour & Employment has attached significant legal immunity and operational waivers to the program.

Participating establishments will receive retrospective exemption status dating from the inception of their trust up to a designated cut-off date. Furthermore, the government has waived strict compliance prerequisites outlined in the Code on Social Security, 2020, including mandatory minimum employee headcounts, specific corpus size norms, and the typical three-year prior error-free compliance history.

Crucially, ongoing legal proceedings and pending assessments concerning outstanding dues, damages, or accumulated interest will be withdrawn and entirely abated. However, this legal relief is strictly conditional: employers must prove that all member accounts received contributions and interest payouts that were equal to or better than the statutory EPF rates during those periods. Past finalized penalties falling under this category will also be treated as void ab initio (invalid from the beginning).

Next Steps for Employers

To claim these benefits, eligible employers must submit a formal application via email to their respective EPFO Regional Office. Alternatively, they can submit an expression of interest directly to the central desk at rc.exemption@epfindia.gov.in.