Centre Launches Amnesty Scheme for PF Trusts

The Employees’ Provident Fund Organisation launched the Amnesty Scheme, 2026 on 29 June 2026 under the Ministry of Labour & Employment. The scheme gives exempted Provident Fund trusts a one-time six-month window to regularise their status under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.

Provident Fund Trusts and Exemption Framework

Provident Fund trusts are employer-managed funds that operate under the EPF framework for employee retirement savings. Section 17 of the EPF Act, 1952 provides for exemption from the statutory provident fund arrangement when an establishment meets prescribed conditions. The scheme covers establishments whose PF trusts are recognised under the Income Tax Act, 1961 but do not have a formal exemption notification from the Central Government or a State Government. It also applies to cases where trust recognition and exemption status require alignment under the revised compliance framework.

Key Features of the Amnesty Scheme, 2026

The scheme allows retrospective regularisation from the inception of the trust up to a notified cut-off date. It also waives certain requirements under the Code on Social Security, 2020, including minimum employee headcount, corpus size norms, and the three-year prior compliance condition. Pending proceedings on dues, damages, and interest may be withdrawn or abated if member accounts received contributions and interest at rates equal to or higher than the statutory rate. Eligible establishments are placed in two categories based on their present compliance status and their choice to continue as exempted or un-exempted establishments.

Application Process and Regulatory Context

Applications are to be submitted to the Central Government through the concerned EPFO Regional Office by email. An expression of interest may also be sent to [email protected]. The scheme follows amendments introduced by the Finance Act, 2026, which link provident fund exemption under Section 17 of the EPF Act with recognition under the Income Tax Act, 2025. The regulatory framework also connects exempted PF trusts with the transition provisions of the Code on Social Security, 2020.

Important Facts for Exams

• The EPFO is a statutory organisation under the Ministry of Labour & Employment.
• The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 governs provident fund, pension, and insurance-related provisions for covered establishments.
• Section 17 of the EPF Act, 1952 deals with exemption from the statutory provident fund scheme.
• The Code on Social Security, 2020 consolidates several labour welfare laws, including provident fund-related provisions.

Compliance Transition and Litigation Relief

The scheme is intended to reduce long-pending litigation involving exempted PF trusts and compliance disputes. It also seeks to bring exempted provident fund trusts under a uniform compliance framework during the transition to the new regulatory regime by 2027.