The Employees’ Provident Fund Organisation (EPFO) has rolled out the Vishwas 2026 scheme, a one-time settlement window aimed at helping employers resolve long-pending disputes related to delayed provident fund deposits. The initiative offers a substantial reduction in the penalty rate applicable to late contributions, bringing relief to businesses grappling with accumulated liabilities.

Significant Reduction in Penalty Rates

Under the existing framework, the penalty for delayed PF deposits can escalate to as high as 37% per annum. The new scheme restructures this burden into a more manageable monthly rate, determined by the duration of the delay.

For delays extending up to two months, the penalty is set at 0.25% per month. In cases where the delay ranges between two and four months, the rate is 0.50% per month. For periods exceeding four months, the applicable penalty is 1% per month. This tiered structure is designed to incentivise quicker compliance while offering a pathway out of prolonged litigation for past defaults.

Eligibility and Scope of the Scheme

The scheme applies to cases involving delayed PF payments prior to June 14, 2024. Employers falling within specific categories are eligible to apply. This includes situations where damages orders under Section 14B have been challenged before a judicial forum, or where such orders have been issued but recovery is pending or partially completed. Additionally, cases where notices have been issued but a final decision is awaited, as well as instances where no notice has been issued yet but EPFO records indicate delays, are covered under the scheme.

The coverage extends to proceedings currently pending before a court or tribunal. Employers who have received a notice proposing a penalty but have not yet received a final order may also qualify. The benefit is designed to bring finality to a wide range of pending and potential penalty proceedings.

Application Process and Deadlines

To avail the benefit, employers must first clear all outstanding interest on delayed PF contributions. Following this, applications can be submitted online through the EPFO Employer Portal. The process involves logging into the portal, accessing the designated Vishwas 2026 module, selecting the applicable category, and uploading the required documents with digital authentication. The system is configured to automatically calculate the revised penalty amount based on the provided details.

The deadline for submitting applications under the scheme is December 28, 2026. Once an application is processed and the payment is confirmed, the employer has 15 days to make the payment, with an automatic 15-day extension available if necessary. Upon confirmation of payment and the digital signing of the settlement certificate by the EPFO, the proceedings before the relevant court or tribunal will be deemed closed.

This scheme presents a structured opportunity for employers to regularise past non-compliance and reduce the financial and administrative burden of prolonged disputes.

Disclaimer: This content is for informational purposes only and does not constitute legal, financial, or professional advice. The information is based on the cited news report and is subject to change. Readers are strongly advised to verify all details, including eligibility criteria, penalty rates, and deadlines, directly with the official EPFO website or a qualified professional before taking any action. The author and publisher assume no liability for any loss or damage arising from reliance on this information.