New Delhi: Employers facing long-pending disputes over delayed Employees’ Provident Fund (EPF) contributions can now settle eligible cases at significantly reduced penalty rates under the government’s VISHWAS 2026 one-time settlement scheme. The initiative is aimed at resolving old EPF penalty disputes and reducing the financial burden on eligible establishments.

The scheme will remain open until December 28, 2026, and the government has stated that the deadline will not be extended. Employers with eligible cases need to complete the settlement process within the prescribed period to take advantage of the reduced penalty structure.

EPF penalty reduced under VISHWAS 2026

Under the existing framework, penalties for delayed PF deposits can be substantially higher. India Today reported that the penalty can go up to 37% per year under the existing rules.

VISHWAS 2026 offers a significantly lower penalty depending on how long the PF contribution was delayed.

Under the scheme:

  • Delay up to two months: 0.25% per month
  • Delay of more than two months and up to four months: 0.50% per month
  • Delay beyond four months: 1% per month

The reduced rates are intended to make it easier for eligible employers to resolve old disputes instead of continuing with lengthy penalty proceedings and recovery cases.

Which EPF disputes are eligible?

VISHWAS 2026 covers eligible cases involving delayed PF contributions made before June 14, 2024.

The scheme can apply to several categories of pending disputes. These include cases where penalty proceedings are currently pending before a court or tribunal.

It also covers situations where the Employees’ Provident Fund Organisation (EPFO) has already issued a penalty order but the recovery is still partly or completely pending.

Employers can also potentially use the settlement route where EPFO has issued a notice proposing a penalty but has not yet passed a final order.

In certain cases, even where EPFO records show delayed PF payments but no penalty notice has yet been issued, the employer may be eligible, subject to the conditions specified under the scheme.

High Courts support settlement under VISHWAS

The scheme has also featured in proceedings before several High Courts.

The Bombay High Court’s Pune Bench, in Writ Petition No. 4246 of 2018, directed an employer to apply under VISHWAS 2026 within two weeks. The court also modified the earlier tribunal order and disposed of the writ petition.

The Madras High Court, in Writ Petition No. 38008 of 2024, disposed of a case after the employer expressed its willingness to use the settlement scheme. The connected tribunal proceedings were also closed.

Meanwhile, the Kerala High Court’s Ernakulam Bench issued similar directions in 19 cases, asking the establishments concerned to approach EPFO for settlement under VISHWAS 2026.

These developments indicate that the scheme could provide an opportunity for employers involved in prolonged litigation or recovery proceedings to resolve eligible matters under the revised penalty structure.

How employers can apply for VISHWAS 2026

The settlement process is available online through the EPFO Employer Portal.

Before submitting an application, employers must first clear all outstanding interest on delayed PF contributions.

After that, employers can log into the EPFO Employer Portal and access the VISHWAS 2026 module. They need to select the relevant category, upload the required documents and complete the digital authentication process.

The system will then calculate the revised penalty applicable under the settlement scheme.

Once the revised penalty is determined, employers will have 15 days to make the payment. An automatic extension of another 15 days is available wherever required, according to the reported process.

What happens after payment?

Once the settlement payment is confirmed, EPFO will issue a digitally signed Settlement Certificate.

The certificate is important because it formally records the settlement. Proceedings pending before a court or tribunal will then stand closed, subject to the applicable provisions of the scheme.

This provides employers with a route to bring eligible long-standing EPF penalty matters to an end instead of continuing with litigation or recovery proceedings.

December 28 is the final deadline

Eligible establishments have until December 28, 2026 to apply under VISHWAS 2026.

EPFO has specifically urged eligible employers to make use of the opportunity before the deadline. The government has stated that the deadline will not be extended, making timely application important for establishments seeking to settle qualifying cases.

To assist employers, dedicated VISHWAS Cells and Helpdesks have been established at all 153 EPFO Regional Offices across India. Detailed guidelines and frequently asked questions are also available through EPFO’s official channels.

Relief for employers with long-pending EPF cases

VISHWAS 2026 provides a time-bound opportunity for employers facing old EPF penalty disputes to settle them at substantially reduced rates.

However, eligibility depends on the nature and date of the delayed PF contribution and the status of the related proceedings. Employers should therefore check the scheme’s detailed conditions before applying.

With the deadline fixed at December 28 and no extension planned, establishments with eligible cases may need to act well before the closing date to complete documentation, payment and settlement formalities.