EPFO urges employers to settle PF damages under VISHWAS 2026 before 28 December

The Employees’ Provident Fund Organisation (EPFO) has urged eligible establishments to settle long-pending disputes over damages for late provident fund (PF) deposits under VISHWAS, 2026, a one-time settlement scheme. A Ministry of Labour and Employment release of 3 September 2026 says the scheme lets employers close these cases by paying a sharply reduced penalty. The scheme is open until 28 December 2026, and the closing date will not be extended.

What has changed

The release says the penalty for late PF deposit can normally be as high as 37% a year. Under VISHWAS, 2026, it is reduced as follows:

Cases of delayed PF contributions relating to the period before 14 June 2024 may be considered if the employer falls within one of four categories:

• penalty proceedings are pending before a court or tribunal;
• EPFO has passed a penalty order, but recovery is fully or partly pending;
• EPFO has issued a notice proposing a penalty, but no final order has been passed;
• EPFO records show delays in PF payments, but no penalty notice has been issued so far.

The release also notes that High Courts have pointed employers to the scheme. The Bombay High Court (Pune Bench), in WP No. 4246 of 2018, ordered an employer to apply within two weeks. The Madras High Court disposed of WP No. 38008 of 2024 once the employer said it would use the scheme. The Kerala High Court (Ernakulam Bench) issued similar directions in nineteen cases.

How the process works

• The employer must first clear all outstanding interest on delayed PF contributions.
• The application is made on the EPFO Employer Portal (unifiedportal-emp.epfindia.gov.in) through the VISHWAS, 2026 module: select the category, upload the documents and complete digital authentication.
• The system calculates the revised penalty automatically.
• The employer has 15 days to pay, with an automatic further 15 days wherever required.
• Once payment is confirmed, EPFO issues a digitally signed Settlement Certificate, and the related proceedings before a court or tribunal stand closed.

Who is affected

Employers that deposited PF contributions late before 14 June 2024 and face, or could face, damages for that delay. This includes companies with old disputes before a court or tribunal, those with unpaid penalty orders or pending notices, and those whose delays appear in EPFO records but have not yet led to a notice. The release does not list exclusions or conditions beyond clearing interest; it says detailed guidelines and FAQs are on the EPFO website.

What this means for businesses

For founders and finance teams, the scheme is a chance to close an open-ended liability that may have been carried for years. In practice, a delay that could attract damages of up to 37% a year can be settled at 0.25% to 1% a month, and the settlement certificate ends pending litigation on that dispute. Because outstanding interest must be paid before applying, companies need to plan for that cash first.

Companies should review past PF payment records, any notices or orders from EPFO, and pending appeals, and compare the settlement amount with the cost of continuing the dispute. Since settlement closes the court or tribunal case, take advice on each case before applying.

Key dates

• The scheme is open until 28 December 2026; EPFO says this date will not be extended.
• After the revised penalty is calculated, employers get 15 days to pay, extendable automatically by another 15 days where required.
• Help is available at VISHWAS Cells and helpdesks in all 153 EPFO Regional Offices and on the toll-free helpline 1800-180-1820.