Centre Launches Amnesty Scheme for Exempted PF Trusts to Regularise Status

Why in news ?

• The Employees' Provident Fund Organisation (EPFO) has launched the Amnesty Scheme, 2026, giving exempted Provident Fund (PF) Trusts a one-time opportunity to regularise their legal status.
• The scheme is meant for establishments that have been running PF Trusts but do not have a formal exemption notification from the Central or State Government.

Key Highlights

• EPFO has invited applications from eligible PF Trusts under the Amnesty Scheme, 2026.
• The scheme aims to align PF Trusts with the provisions of the Finance Act, 2026, Income Tax Act, 2025, and the Code on Social Security, 2020.
• It is valid for six months.

Who Can Apply ?

• The scheme is applicable to establishments that 
  • Operate an exempted Provident Fund Trust.
  • Do not possess an official exemption notification under Section 17 of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952.

Benefits Under the Amnesty Scheme

• Eligible PF Trusts will receive :
  • Retrospective exemption status from the date the Trust was established up to the notified cut-off date.
  • Recognition under the Income Tax Act.
  • Relaxation of minimum employee strength and corpus size requirements.
  • A one-time opportunity to become fully compliant with EPFO regulations.

Why Was the Scheme Introduced ?

• The Finance Act, 2026 changed the rules governing recognised Provident Funds. Under the new framework :
  • Recognition under the Income Tax Act, 2025 will be available only to PF Trusts that have obtained exemption under Section 17 of the EPF Act, 1952.
  • The Amnesty Scheme allows existing Trusts without formal exemption to regularise their status without losing recognition.

What Should Eligible Establishments Do ?

• Eligible establishments should submit a formal application to the Union Government within the six-month window to avail the benefits of the scheme.

EPFO Interest Update

• Separately, the Union Labour Minister has stated that interest on Employees' Provident Fund (EPF) deposits will be credited to members' accounts by July 15, 2026.