Vivek Jha, Bhopal: In a significant compliance reform aimed at simplifying provident fund regulations, the Employees’ Provident Fund Organisation (EPFO) has invited applications under the newly introduced Amnesty Scheme 2026 for establishments operating Recognised Provident Fund (PF) Trusts. The one-time scheme offers a six-month opportunity for eligible establishments to regularize their trust status retrospectively and align with the revised statutory framework under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 and the Code on Social Security, 2020.
Roshan Kashyap, Regional Provident Fund Commissioner, EPFO Regional Office, Bhopal, said that the Amnesty Scheme 2026, notified by the Central Government on 29 June 2026, provides a significant opportunity for establishments that have been operating recognised Provident Fund Trusts under the Income Tax Act, 1961, but have not obtained a formal exemption under Section 17 of the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. He said the scheme is expected to provide substantial relief by enabling such establishments to regularize their trust status through a simplified process. He further stated that the initiative would help reduce long-pending legal disputes, strengthen statutory compliance and enhance transparency in the administration of provident fund trusts, while ensuring that employees’ social security interests remain fully protected.
Finance Act 2026 Brings Major Regulatory Alignment
The introduction of the Amnesty Scheme follows an important legislative change under the Finance Act, 2026, which aligns the Income Tax provisions governing recognised provident funds with the statutory requirements of the EPF Act.
Under the revised framework, recognition under the Income Tax Act will now be available only to provident fund trusts that have obtained exemption under Section 17 of the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952.
To facilitate this transition, the Government has introduced the Amnesty Scheme, allowing eligible establishments to obtain retrospective exemption and regularisation without undergoing prolonged litigation.
Who Can Apply?
The scheme is applicable to establishments that:
- Have been operating a Recognised Provident Fund Trust under the Income Tax Act, 1961.
- Do not possess a formal exemption notification issued by the Central or State Government under the EPF Act.
Such establishments can now regularize their trust status through the prescribed application process.
Two Categories of Eligible Establishments
EPFO has classified eligible applicants into two broad categories.
Category I
Establishments seeking retrospective regularisation that:
- Have already started complying as un-exempted establishments, or
- Intend to continue future compliance as un-exempted establishments.
Category II
Establishments seeking retrospective regularisation while continuing to function as Exempted Establishments under the Code on Social Security, 2020.
Retrospective Recognition of PF Trusts
One of the most significant features of the scheme is the provision for retrospective regularisation.
Eligible establishments will receive exemption status and trust recognition from the date of establishment of the trust up to the notified cut-off date, thereby providing legal certainty to trusts that have operated for years without formal exemption.
Major Compliance Relaxations
The Amnesty Scheme grants several important relaxations under the Code on Social Security, including:
- Waiver of minimum employee strength requirements.
- Waiver of minimum corpus size conditions.
- Deemed fulfillment of the mandatory three-year prior compliance requirement.
These relaxations are expected to make regularisation significantly easier for long-standing provident fund trusts.
Pending Legal Proceedings May Be Closed
The scheme also offers substantial legal relief.
Subject to verification that employees have received provident fund contributions and interest equal to or higher than statutory requirements:
- Pending assessments for dues, damages and interest may be withdrawn.
- Ongoing legal proceedings may stand abated.
- Earlier finalized orders may be treated as void ab initio.
This provision is expected to substantially reduce litigation involving provident fund trusts.
Application Process
Eligible establishments are required to submit a formal application addressed to the Central Government through the concerned EPFO Regional Office via email.
Employers may also submit an Expression of Interest indicating their willingness to avail the scheme by emailing:
rc.exemption@epfindia.gov.in
Mandatory Audit Requirements
The scheme makes audit compliance mandatory.
Applicants must:
- Get their financial accounts audited by a Chartered Accountant.
- Complete any special or compliance audit directed by EPFO authorities within three months of submitting the application.
EPFO Regional Offices to Provide Guidance
EPFO has directed all jurisdictional Regional Offices to provide necessary assistance to eligible establishments regarding documentation, procedural formalities and application processing.
Detailed operational guidelines, Standard Operating Procedures (SoPs), circulars and related documents are available through EPFO for employers seeking to avail the scheme.
Why the Scheme Matters
Labour law professionals believe the Amnesty Scheme is one of the most significant compliance reforms for provident fund trusts in recent years.
Many organisations established recognised PF trusts decades ago under the Income Tax framework but never obtained formal exemption under the EPF Act. The new scheme provides these employers with a unique opportunity to regularize their status, eliminate legacy disputes and strengthen future statutory compliance.
For employers, it offers legal certainty, reduced litigation and a structured pathway toward complete compliance. For EPFO, the initiative is expected to improve governance, simplify trust administration and ensure greater alignment with the country’s evolving social security framework.
Amnesty Scheme 2026 – At a Glance
| Particular |
Details |
| Scheme Name |
Amnesty Scheme 2026 |
| Implementing Authority |
Employees’ Provident Fund Organisation (EPFO) |
| Notification Date |
29 June 2026 |
| Validity |
Six Months |
| Applicable To |
Recognised PF Trusts without formal exemption under Section 17 |
| Major Benefit |
Retrospective regularisation of PF Trusts |
| Legal Relief |
Withdrawal/abatement of eligible pending proceedings |
| Audit Requirement |
Mandatory Chartered Accountant Audit |
| Application Mode |
Email through the concerned EPFO Regional Office |
| Expression of Interest |
rc.exemption@epfindia.gov.in |
Who Should Consider Applying?
The scheme is particularly relevant for:
- Manufacturing companies
- Public Sector Undertakings (PSUs)
- Large private enterprises
- Banks and financial institutions
- Educational institutions
- Hospitals
- IT and service sector companies
- Infrastructure organisations
- Industrial establishments operating recognised PF Trusts
Expert View
Employment law experts advise eligible employers to review their provident fund trust status immediately and submit applications well within the six-month window. Timely regularisation under the Amnesty Scheme 2026 can help organisations resolve long-pending compliance issues, reduce litigation risk and ensure seamless alignment with the latest EPFO and social security regulations.
