EPFO Scheme: Big news for EPFO members. A new notification has been released by the Employees Provident Fund Organisation (EPFO). This notification pertains to those managing private PF trusts, also known as Exempted PF Trusts. EPFO has launched the Amnesty Scheme, 2026, which presents an opportunity for companies operating their own PF trusts that have not yet received the necessary exemption notification from the government. According to a statement from EPFO, those managing such private PF trusts will have a period of 6 months to comply. It’s important to note that this notification was issued by EPFO on June 29th.
The Ministry of Labour has indicated that the Finance Act, 2026, has amended the Income Tax Act to align the provisions concerning recognized provident funds with the Employees’ Provident Funds and Miscellaneous Provisions Act of 1952. Recognition under the Income Tax Act will now only be granted to PF trusts that are exempt under Section 17 of the Act.
What is an Exempted PF Trust?
Large companies, with government approval, manage their own provident funds for their employees, referred to as Exempted PF Trusts. These trusts gather contributions from both employees and the company, crediting the funds at an interest rate determined by the government.
What are the benefits of the EPFO Amnesty Scheme, 2026?
The primary advantage of this scheme is regularization. Exempt status and recognition will be granted retroactively from the establishment date of the trust up to the cut-off date. This scheme will also help avoid legal repercussions. If a private PF trust has credited interest rates to members’ accounts at or above the mandated rate, it can also resolve past issues related to outstanding interest, losses, and interest claims. Additionally, the minimum employee count and fund requirements under the Social Security Code will be eased, and compliance requirements will be deemed fulfilled within three years.
There are two categories in this scheme
The EPFO’s Amnesty Scheme is for two types of organizations: one that wishes to comply with the rules without exemptions, and the other for those that wish to operate as exempt PF trusts. Institutions in both categories have six months to regularize their status during this period.