The Employees’ Provident Fund Organization (EPFO) has notified a unique Amnesty Scheme, 2026, allowing establishments operating exempted Provident Fund (PF) Trusts to regularize their status under the Employees’ Provident Fund and Miscellaneous Provisions (EPF and MP) Act, 1952.The scheme, which came into effect on June 29, will remain open for six months, giving eligible employers the opportunity to obtain a retrospective exemption, resolve outstanding compliance issues and align with the revised legal framework.The move follows amendments introduced through the Finance Act, 2026, which aligned the Income Tax framework with the EPF and MP Act. As per the revised provisions, recognition under the Income Tax Act will be available only to provident funds that have obtained exemption under section 17 of the EPF and MP Act, 1952.According to the Ministry of Labor and Employment, the amnesty is aimed at reducing long-pending litigation, bringing exempt PF trusts under a uniform compliance framework and facilitating a smoother transition to the new regulatory regime.
Who is eligible?
The scheme is intended for establishments that have been operating a provident fund recognized under the Income Tax Act but do not possess a formal exemption notification issued by the central or state government under the EPF Act.EPFO has classified the eligible establishments into two categories:
- Trusts seeking retrospective regularization that have already begun to comply as non-exempt establishments or are willing to do so prospectively.
- Trusts seeking retrospective regularization while continuing to operate as exempt establishments under the 2020 Social Security Code.
The notification states that eligible establishments will be granted amnesty retrospectively under section 17 of the EPF and MP Act and section 143 of the Social Security Code, 2020.
Relief under the scheme
The amnesty offers several relaxations to encourage eligible establishments to submit to the formal regulatory framework.Successful applicants will receive exempt status and recognition of the trust from the inception of the trust until the prescribed deadline. The EPFO has also waived the minimum strength and corpus requirements of employees, while the mandatory three-year prior compliance condition will be deemed fulfilled.The plan also provides relief in pending legal proceedings. The contributions relating to the dues, damages and interest of the provident fund will be withdrawn and considered closed, provided that the employees have received contributions and interest at rates equal to or higher than the legal rate.Additionally, completed orders in eligible cases will be considered void ab initio, offering participating establishments a clean slate.Applications open until DecemberEPFO regional offices have been directed to facilitate employers in filing applications and processing applications under the scheme.With the application window remaining open until December, the amnesty is being positioned as a unique opportunity for exempt PF trusts to regularize their status before the revised Income Tax provisions come into full operation.
Renewed centralized portal
The notification comes soon after EPFO completed the migration of all member records to a centralized database, restoring online services for members and employers after a nationwide technology upgrade.The new digital platform introduces automated pre-validation of provident fund applications, allowing the system to identify missing information or discrepancies before the applications reach the EPFO offices. Members will be notified of any errors in advance and guided on any required corrections, a move that is expected to improve acceptance of first-time claims and reduce processing delays.The updated portal also provides a unified dashboard where members can access PF balances, claim status, pension records and benefits from a single interface. Other features include automatic transfers of PF accounts for Aadhaar-linked universal account numbers (UANs) when members change jobs, online responses to EPFO queries, a centralized payment architecture for faster claim settlements and an increased automatic settlement limit of Rs 5 lakh for eligible advance claims, up from Rs 1 lakh earlier.EPFO has said that the digital overhaul aims to improve operational efficiency, reduce paperwork and enable member services to be processed from any authorized office across the country. However, during the initial stabilization phase, some online claims and services may take a little longer as additional verification checks are performed.
