The Employees’ Provident Fund Organisation (EPFO) has urged eligible establishments and employers to take advantage of the VISHWAS 2026 scheme, a one-time settlement initiative to resolve long-pending disputes over damages arising from delayed Provident Fund (PF) contributions. The scheme was highlighted in a Press Information Bureau (PIB) press release dated September 3.
The scheme will remain open until December 28, 2026, and the deadline is not expected to be extended.
VISHWAS 2026 offers employers a significant reduction in penalties that can otherwise go up to 37% annually. Under the scheme, damages have been reduced to 0.25% per month for delays of up to two months, 0.50% per month for delays between two and four months, and 1% per month for delays exceeding four months.
Several High Courts have also encouraged employers to use the settlement window. The Bombay High Court’s Pune Bench directed an employer to apply under the scheme, while the Madras High Court closed proceedings after the employer expressed its willingness to settle. Similarly, the Kerala High Court has issued directions in 19 cases encouraging employers to use the scheme.
The initiative is expected to provide relief to employers by lowering the cost of settling legacy PF disputes. It could also reduce uncertainty and the time involved in prolonged litigation, while helping clear the backlog of cases and improve compliance with PF obligations.
The scheme covers eligible cases involving delayed PF payments made before 14 June 2024, including matters pending before courts or tribunals, penalty orders awaiting recovery, pending penalty notices and certain cases where delays are recorded but no penalty notice has been issued.
Employers facing such cases must first clear outstanding interest on delayed PF contributions before applying online through the EPFO Employer Portal. Then the system will calculate the revised penalty, along with 15 days provided to clear the payment and a further 15-day extension on a case-by-case basis. A digitally signed ‘Settlement Certificate’ will be issued after payment, bringing eligible court or tribunal proceedings to a close.
With VISHWAS 2026 offering employers an opportunity to reduce financial liabilities and resolve long-standing disputes, EPFO has urged eligible establishments to complete the settlement process before the December 28 deadline. Dedicated VISHWAS cells and help desks are also available at all 153 EPFO regional offices to assist eligible applicants.
For more information and details, you can refer to the official notification at: https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2306438®=3&lang=1
Shivam writes on personal finance, equity markets, and mutual funds. He has previously contributed to several leading publications, including Moneycontrol. He can be reached at shivam.shukla@htdigital.in
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