EPFO Launches Amnesty And Vishwas Scheme, Offers Six-Month Window To Establishments

The Employees’ Provident Fund Organisation (EPFO) has announced two significant initiatives in the June 20, 2026, notification for exempted provident fund (PF) trusts and other establishments engaged in legal disputes. The aim is to streamline the social security landscape for employers. These two initiatives include the Amnesty Scheme 2026 and the Vishwas 2026 dispute resolution plan. 

Amnesty Scheme 2026 for Exempted Provident Fund Trusts

The Amnesty Scheme 2026 offers an opportunity for establishments that have been operating as exempted PF Trusts. Many of these PF Trusts are recognised under the Income-tax Act, 1961, but do not have a formal exemption notification from the appropriate central or state governments.

To streamline this set-up and to bridge the legal gap, the Finance Act, 2026, has aligned the Income Tax framework for these funds with the provisions of EPF and Misc Provisions Act, 1952. Under the new rules, only those Trusts that have obtained the exemption under Section 17 of the EPF Act, 1952, will be recognised under the Income-tax Act, 1961.  

The amnesty scheme, Section 17 of the Act and Section 143 of the Code on Social Security, 2020, provides six months window to the exempted establishments that want to continue with the same status and those establishments that want to transition to an un-exempted establishment for seeking regularisation of their status. The scheme has become effective from June 29, 2026, according to the gazette notification.  

What Benefits Does Amnesty Scheme Offer?

The eligible entities can receive retrospective regularisation, which means they can receive Trust recognition dating back to the inception of the Trust to the designated cut-off date. The one-time scheme offers establishments a waiver under the Code on Social Security, 2020, regarding the requirement of a minimum number of employees and the size of the corpus. 

The three-year prior compliance rule will also be considered fulfilled for those entities that join the scheme. To clear the pendency, pending assessments for dues, damages, and interest will be withdrawn and abated if interest and contribution have been transferred to the members’ accounts at an equal or higher rate than the statutory requirements. However, any past order in conflict with these terms will be treated as void ab initio. Establishments can apply for the amnesty by sending an email to their jurisdictional regional office or by sending an expression of interest.

Vishwas 2026 For Settlement Of EPF Disputes

Vishwas 2026 is a dispute resolution scheme for employers who are facing pending EPF cases. The scheme aims to provide an amicable settlement of disputes, mainly related to the damages levied under Section 14B of the EPF Act, 1952 (Section 128 of the Code on Social Security, 2020).

What Does The Vishwas Scheme Offer?

Under this scheme, eligible employers are offered the opportunity to settle pending cases by paying substantially reduced damages instead of the standard punitive rates. However, it would apply only when they have paid the applicable interest and adhere to the scheme’s conditions.

The relief will apply only to delays that occurred before June 14, 2024. For these cases, the damages will be calculated at significantly lower concessional rates depending on the period of delay.

Here is the charge matrix:

• Delays up to two months: 0.25 per cent per month

• Delays from 2-4 months: 0.50 per cent per month

• Delays extending beyond four months: charge is capped at 1 per cent per month

So, an employer who has been facing higher penalties earlier for delayed deposit of EPF contribution can now settle the matter at these lower rates.

This scheme is valid for six months, starting from June 29, 2026. The jurisdictional regional offices of the EPFO have been tasked with providing guidance regarding the scheme and processing the applications for the participating establishments.