The Employees' Provident Fund Organisation (EPFO) has announced a one-time amnesty scheme valid until December 28, 2026, allowing Provident Fund (PF) Trusts to regularize their official exemption status. According to reports from Mint, the Ministry of Labour and Employment stated that the amnesty provisions were introduced as a transitional measure under the Employees' Provident Fund (EPF) Scheme 2026, notified on June 29, 2026. The scheme specifically targets PF Trusts that are recognized under the Income Tax Act but lack a formal exemption order under the EPF law. As per Mint, the scheme is available for six months from the date of notification, providing eligible PF trusts with a one-time opportunity to regularize their exemption status retrospectively.
The amnesty scheme offers two categories of regularization based on establishment preferences. According to Mint, Category I includes establishments that want retrospective regularization and have either already started complying as unexempted establishments or intend to do so going forward. Category II covers establishments that want retrospective regularization and intend to continue operating as exempted establishments under the Code on Social Security, 2020. The key benefit is retrospective regularization of the trust's exemption status, which can be regularized from the inception of the trust up to the applicable cut-off date. The scheme provides relief from certain requirements under the Code on Social Security, 2020, including minimum employee headcount requirements, minimum corpus-size requirements, and the three-year prior-compliance requirement which is deemed to have been met.
The amnesty scheme includes comprehensive waivers and legal relief provisions for eligible PF trusts. As reported by Mint, the scheme provides relief from certain requirements under the Code on Social Security, 2020, including minimum employee headcount requirements, minimum corpus-size requirements, and the three-year prior-compliance requirement. Additionally, there is relief from certain past legal proceedings, with pending assessments relating to dues, damages and interest that can be withdrawn and abated if prescribed conditions are met, including that members received contributions and interest at rates at least equal to the statutory rates.
EPFO is making extensive efforts to identify eligible PF trusts through strategic outreach to professional bodies. According to Mint, EPFO has reached out to the Institute of Chartered Accountants of India (ICAI), whose members undertake statutory or Income Tax audits of establishments including many cases where such establishments have formed PF Trust Funds. ICAI has been requested to circulate the amnesty provisions among its members to encourage eligible PF trusts to avail the scheme. As reported by Mint, EPFO has also reached out to the Income Tax Department seeking details of PF trusts recognized under the Income Tax Act, requesting for undertaking corresponding checks of an establishment's status of coverage and exemption under the EPF&MP Act, 1952 or CoSS, 2020 before granting recognition under the IT Act, or withdrawing existing recognition of PF Trusts which do not have formal exemption order from EPFO.
EPFO is conducting comprehensive outreach activities to ensure proper awareness and guidance for prospective applicants. According to Mint, EPFO is making all-out efforts to ensure that prospective applicants are properly made aware of the Amnesty provisions and are properly guided in the entire process through its field offices. The ministry stated that EPFO has reached out to professional bodies like the Institute of Chartered Accountants of India (ICAI), whose members undertake statutory or Income Tax audit of establishments including many cases where such establishments have formed PF Trust Funds. EPFO field offices like Zonal Office UP and Zonal Office Kolkata have conducted seminars and workshops with stakeholders as part of the outreach drive, with the main purpose being to resolve the historical exemption and compliance status of eligible PF trusts.
