New Delhi, September 3: The Employees’ Provident Fund Organisation (EPFO) has urged eligible establishments to take advantage of the Vishwas, 2026 one-time settlement scheme to resolve certain long-pending disputes related to delayed provident fund contributions.
The scheme allows qualifying employers to settle penalty-related matters at reduced rates, offering an opportunity to close cases that may have remained pending before EPFO, courts or tribunals for several years.
Under the scheme, the applicable penalty has been substantially reduced based on the period of delay. For delays of up to two months, the rate is 0.25 per cent per month, while delays exceeding two months but not four months attract 0.50 per cent per month.
For delays of more than four months, the rate is 1 per cent per month.The scheme covers eligible cases concerning delayed PF contributions made before June 14, 2024.
These may include matters pending before courts or tribunals, cases where EPFO has issued penalty orders but recovery remains pending, and cases where notices have been issued but final orders are yet to be passed.EPFO said cases involving recorded delays for which no penalty notice has been issued may also be considered, subject to the prescribed eligibility conditions.
The application process has been made available online through the EPFO employer portal. Applicants are required to clear the outstanding interest on delayed PF contributions before submitting their applications.
The system will calculate the applicable reduced penalty, after which employers will have 15 days to make the payment, with an additional 15-day period available automatically where required.
Following confirmation of payment, EPFO will issue a digitally signed settlement certificate. Eligible proceedings connected with the settled matter can thereafter be brought to a close in accordance with the scheme.Several High Courts have also encouraged eligible establishments to use the settlement mechanism in pending cases.
The Bombay High Court’s Pune Bench, the Madras High Court and the Kerala High Court have issued directions in cases involving employers seeking to benefit from the scheme.EPFO has set up dedicated Vishwas cells and help desks at its 153 regional offices to assist applicants.
The organisation has also advised employers to complete their applications before the scheme closes on December 28, 2026, stating that the deadline will not be extended.
The initiative is aimed at reducing the backlog of PF penalty disputes, easing compliance for eligible establishments and enabling faster resolution of long-pending cases.
