For employers stuck with old EPF penalty disputes, there is now a way to settle them at a much lower cost. The government has launched , a one-time settlement scheme that allows eligible establishments to resolve long-pending disputes by paying a sharply reduced penalty.
The scheme will remain open until December 28, 2026, and the government has said that the deadline will not be extended.
Under the existing rules, the penalty for delayed PF deposits can be as high as 37% per year. Under VISHWAS 2026, employers can settle the penalty at much lower rates, depending on the length of the delay.
For delays of up to two months, the penalty will be 0.25% per month. For delays of more than two months and up to four months, it will be 0.50% per month. For delays beyond four months, the rate will be 1% per month.
The scheme covers eligible cases involving delayed PF contributions made before 14 June 2024.
It includes cases where penalty proceedings are pending before a court or tribunal. It also covers cases where has already passed a penalty order but recovery is still partly or fully pending.
Employers can also use the scheme where EPFO has issued a notice proposing a penalty but has not yet passed a final order. Cases where EPFO records show delayed PF payments but no penalty notice has been issued can also be considered, subject to the specified conditions.
The scheme has also received support from various High Courts.
The Bombay High Court’s Pune Bench, in WP 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 WP No. 38008 of 2024, disposed of the case after the employer expressed its willingness to use the scheme. The related tribunal proceedings were also closed.
The Kerala High Court’s Ernakulam Bench has issued similar directions in 19 separate cases, asking the establishments involved to approach EPFO and settle their disputes under VISHWAS 2026.
The settlement process is available online. Before applying, employers must first clear all outstanding interest on delayed PF contributions.
They can then log in to the EPFO Employer Portal, open the VISHWAS 2026 module, select the relevant category, upload the required documents and complete digital authentication.
The system will automatically calculate the revised penalty. Employers will have 15 days to make the payment, with an automatic extension of another 15 days wherever required.
Once the payment is confirmed, EPFO will issue a digitally signed Settlement Certificate. The proceedings pending before a court or tribunal will then stand closed.
Eligible employers have until December 28, 2026 to take advantage of VISHWAS 2026. EPFO has urged establishments to apply within the deadline, which will not be extended.
To help applicants, dedicated VISHWAS Cells and Helpdesks have been set up at all 153 EPFO Regional Offices across the country. Detailed guidelines and frequently asked questions are also available on the EPFO website.