The scheme is aimed at employers that have been operating recognised PF trusts under the Income Tax Act but do not have a formal exemption notification under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
Applications can be submitted for six months from the date of notification, which was issued on June 29.
Why has EPFO introduced the scheme?
According to the Ministry of Labour and Employment, the Finance Act, 2026 has aligned the income tax framework governing recognised provident funds with the EPF law.
Going forward, recognition under the Income Tax Act will be available only to provident funds that have obtained exemption under Section 17 of the EPF Act. The amnesty scheme provides eligible establishments an opportunity to obtain retrospective regularisation of their exempted PF trusts.
Which establishments are eligible?
The scheme applies to establishments that have been operating a provident fund trust recognised under the Income Tax Act, 1961, but do not possess a formal exemption notification from the Central or State Government.
EPFO has divided eligible applicants into two categories:
Category I: Establishments seeking retrospective regularisation that have already shifted to compliance as un-exempted establishments or intend to comply as un-exempted establishments going forward.
Category II: Establishments seeking retrospective regularisation while continuing to operate as exempted establishments under the Code on Social Security, 2020.
What relief does the scheme provide?
The amnesty scheme offers several concessions to eligible establishments.
These include retrospective regularisation of exemption status from the inception of the trust up to the notified cut-off date. It also waives certain conditions under the Code on Social Security, 2020, including minimum employee strength, corpus size requirements and the three-year prior compliance condition.
In addition, EPFO said pending proceedings relating to provident fund dues, damages and interest will be withdrawn and treated as abated, provided employees received contributions and interest at statutory rates or higher. Past finalised orders covered under the scheme will be treated as void from the beginning.
What does it mean for EPF members?
The scheme is primarily targeted at employers operating exempted PF trusts and does not require any action from employees.
For employees, the key safeguard is that the legal relief available to employers is subject to the condition that provident fund contributions and interest credited to members’ accounts were at least equal to the statutory EPF rates. This is intended to ensure that members’ retirement savings are not adversely affected while employers regularise their compliance status.
How can employers apply?
Eligible establishments must submit a formal application to the Central Government through the concerned EPFO Regional Office. They can also send an expression of interest via email to rc.exemption@epfindia.gov.in.
EPFO has also made audit compliance mandatory. Financial accounts must be audited by a chartered accountant, while any special or compliance audit directed by EPFO authorities must be completed within three months of submitting the application.
The organisation said detailed operational guidelines, including the standard operating procedure and application process, are available through its notified scheme and circulars.
