EPFO notified One Time Amnesty Scheme, 2026, (representative image)
The Employees’ Provident Fund Organization (EPFO) has notified the One-Time Amnesty Scheme, 2026, allowing institutions managing exempt Provident Fund (PF) provident funds to regularize their status under the Employees’ Provident Fund and Miscellaneous Provisions (EPF & MP) Act, 1952.The programme, which took effect on June 29, will remain open for six months, giving eligible employers the opportunity to obtain retrospective relief, resolve outstanding compliance issues and align with the revised legal framework.The move comes in the wake of amendments brought in through the Finance Act, 2026, which aligned the income tax framework with the EPF and MP Act. Under the revised provisions, recognition under the Income Tax Act will be available only to provident funds that have received exemption under Section 17 of the EPF & MP Act, 1952.According to the Department of Labor and Employment, the amnesty aims to reduce long-awaited litigation, subject exempt mortgage funds to a unified compliance framework and facilitate a smoother transition to the new regulatory regime.
Who is eligible?
This scheme is for institutions that have been running a provident fund recognized under the Income Tax Act but do not have a formal exemption notification issued by the Central or State Government under the EPF Act.
EPFO has classified eligible institutions into two categories:
- Trusts seeking retrospective regulation that have already begun to comply as non-exempt institutions or wish to do so in the future.
- Trusts that seek retroactive regulation while continuing to operate as exempt organizations under the Social Security Act of 2020.
The notification states that eligible institutions will be granted retrospective amnesty under Section 17 of the EPF & MP Act and Section 143 of the Social Security Act, 2020.
Relief under the scheme
The amnesty provides several relaxations to encourage eligible institutions to submit to the formal regulatory framework.Successful applicants will receive exempt status and trust recognition from the establishment of the fund until the specified deadline.
The EPFO has also waived the minimum employee strength and group requirements, while the mandatory three-year prior compliance requirement will be deemed met.The scheme also provides relief from pending legal proceedings. Assessments relating to provident fund dues, damages and interest will be withdrawn and treated as closed, provided that employees receive contributions and interest at rates equal to or higher than the statutory rate.Furthermore, final applications in eligible cases will be treated as invalid from the beginning, providing a clean slate for participating institutions.Applications are open until DecemberEPFO regional offices have been directed to facilitate employers in applying and processing applications under the scheme.With the application window remaining open until December, the amnesty is positioned as a one-time opportunity for exempt private funds to regularize their situation before the revised income tax provisions take full effect.
Renovation of the central gate
The notification comes shortly after EPFO completed the migration of all member records to a central database, and restored online services for members and employers following a nationwide technology upgrade.The new digital platform offers automated pre-verification of provident fund claims, enabling the system to identify missing information or discrepancies before claims reach EPFO offices. Members will be notified of any errors in advance and guided on required corrections, a move expected to improve first-time claim acceptance and reduce processing delays.The upgraded portal also provides a unified dashboard where members can access personal finance balances, claim status, pension and benefits records from a single interface. Other features include automatic PF account transfers of Aadhaar-linked Universal Account Numbers (UAN) when members switch jobs, online responses to EPFO queries, centralized payment architecture for faster claim settlements, and increased auto settlement limit by Rs 5 lakh for pre-eligible claims, up from Rs 1 lakh earlier.EPFO said the digital reform aims to improve operational efficiency, reduce paperwork and enable member services to be processed from any authorized office across the country. However, during the initial stabilization phase, some claims and online services may take a little longer as additional verifications are performed.