As part of the recent overhaul of the Employees' Provident Fund (EPF) scheme under the newly introduced EPF 2026 scheme, pension body Employees' Provident Fund Organisation (EPFO) has introduced the Amnesty Scheme 2026. This gives a one-time opportunity to organisations managing their own Provident Fund (PF) trusts to fix their legal status and align with new government regulations.

Why was this introduced?

The changes are made as per the requirements of the Finance Act 2026. According to the act, moving ahead, only provident funds with official exemption under Section 17 of the EPF & MP Act will be recognised for income tax purposes. Considering the need to align EPF with the Finance Act, the Amnesty scheme is designed to help organisations bridge the gap between their income tax recognition and their official EPF exemption status without getting stuck in long legal processes.

Who is eligible?

This scheme is introduced for organisations already running a recognised PF trust under the Income Tax Act, 1961. Companies that do not currently have a formal exemption notification from the Central or State Government.

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The scheme divides applicants into two categories–Category I and Category II. ‘Category I’ is for establishments, looking to regularise their records while continuing to operate as an 'un-exempted' establishment. Under ‘Category II’ is for establishments that are looking to regularise their records while continuing to operate as an 'exempted' establishment under the Code on Social Security, 2020.

Benefits of the Scheme

  • Backdated Regularisation: Exemption status can be obtained effective from the date your trust was originally established.

  • Ease: Many tough rules have been waived under the Amnesty scheme, including requirements for minimum employee count, corpus size, and the previous three-year compliance history.

  • Legal Relief: Any ongoing legal proceedings or demands for unpaid dues and interest will be closed, provided your employees have received their contributions and interest at statutory rates.

How to Apply

The scheme will be open for application for six months, starting from June 29, 2026. Meanwhile, organisations can apply by considering the following steps: 

  • Submit a formal application to the Central Government through your regional EPFO office via email.

  • You may also send an expression of interest to rc.exemption@epfindia.gov.in.

  • You will need to have a Chartered Accountant audit your financial accounts.

  • You must be prepared to complete any special compliance audits requested by EPFO authorities within three months of your application.