Employers urged to settle long-pending EPF damages disputes under VISHWAS, 2026 at reduced penalty rates until 28th December, 2026.

The Ministry of Labour and Employment has issued a Press Information Bureau (“PIB”) release urging eligible establishments to settle long-pending Employees’ Provident Fund (“EPF”) damages under the VISHWAS, 2026 scheme. The release follows recent High Court decisions upholding the validity of the scheme and encouraging eligible employers to avail its benefits.

The VISHWAS, 2026 scheme (“Scheme”) was introduced by the Employees’ Provident Fund Organisation (EPFO) to provide relief from long-pending EPF disputes by allowing eligible establishments to settle outstanding dues at substantially reduced rates. The scheme covers eligible default periods and enables employers to resolve legacy disputes by paying damages at concessional rates.

Key Highlights:

1. The Scheme reduces the penalty payable for delayed EPF contributions from the normal rate of up to 37% per annum to concessional rates of 0.25% per month (for a delay up to 2 months), 0.50% per month (for a delay of 2–4 months), and 1% per month (for a delay beyond 4 months).

• The Scheme covers eligible cases involving delayed PF contributions prior to 14 June 2024, including matters pending before courts or tribunals, penalty orders where recovery is pending, pending show-cause notices, and cases where delays are recorded but no penalty notice has been issued.

• Employers must first clear all outstanding interest on delayed PF contributions before applying under the Scheme. The application is to be submitted online through the EPFO Employer Portal (https://unifiedportal-emp.epfindia.gov.in/epfo/) by accessing the VISHWAS, 2026 module, selecting the applicable category, uploading the prescribed supporting documents, and completing the application through digital authentication.  

• The revised damages are automatically calculated by the portal, and employers are required to make payment within 15 days, with an automatic extension of a further 15 days, wherever applicable.

• Upon successful payment, EPFO will issue a digitally signed Settlement Certificate, and the eligible proceedings pending before courts or tribunals will stand closed in accordance with the Scheme.

• Eligible employers may avail the benefits of the Scheme up to 28 December 2026, and dedicated VISHWAS Cells and Helpdesks have been established at EPFO Regional Offices to assist applicants.

Source: Press Information Bureau