The Ministry of Labour & Employment has urged eligible establishments to take advantage of VISHWAS, 2026, a one-time settlement scheme introduced for resolving long-pending disputes relating to damages/penalties on delayed Provident Fund contributions.
The Scheme provides substantial reduction in the damages payable by eligible employers and will remain available only up to 28 December 2026. The Government has specifically stated that the closing date will not be extended.
Substantially Reduced Damages Rates
Under the normal provisions, damages for delayed PF deposits may be significantly higher. Under VISHWAS, 2026, the reduced rates are:
Period of Delay | Reduced Damages under VISHWAS, 2026 |
|---|---|
Delay up to 2 months | 0.25% per month |
Delay from 2 to 4 months | 0.50% per month |
Delay beyond 4 months | 1% per month |
The reduced rates provide a significant opportunity for establishments having old EPF damages matters to settle their liabilities at substantially lower amounts.
Cases Eligible for Consideration
Cases involving delayed payment of PF contributions prior to 14 June 2024 may be considered under the Scheme, subject to fulfilment of the applicable conditions.
The Scheme covers specified categories including:
Proceedings relating to damages/penalties pending before a Court or Tribunal;
Cases where EPFO has already passed a damages/penalty order but recovery is wholly or partly pending;
Cases where EPFO has issued a notice proposing levy of damages but the final order has not yet been passed; and
Cases where EPFO records show delayed PF payments but no damages notice has yet been issued.
Interest Must Be Paid Before Application
An important pre-condition is that the employer must first clear the outstanding interest payable on delayed PF contributions.
Only thereafter can the establishment proceed with the application under VISHWAS, 2026.
Online Application Process
The settlement process has been enabled online through the EPFO Employer Portal.
Eligible establishments are required to:
Clear the outstanding interest on delayed PF contributions;
Log in to the EPFO Employer Portal;
Access the VISHWAS, 2026 module;
Select the applicable category of the case;
Upload the prescribed supporting documents;
Complete digital authentication; and
Pay the revised damages amount calculated through the system.
The portal will automatically calculate the reduced damages payable under the Scheme.
Time Allowed for Payment
After determination of the revised amount, the employer will ordinarily be provided 15 days to make payment.
An automatic extension of a further 15 days may also be available, wherever applicable.
After successful payment, EPFO will issue a digitally signed Settlement Certificate.
Where proceedings are pending before a Court or Tribunal, the concerned proceedings will thereafter be closed in accordance with the Scheme.
High Courts Encourage Settlement under VISHWAS, 2026
The Ministry has also highlighted that various High Courts have encouraged establishments to avail the Scheme.
The Bombay High Court, Pune Bench, in W.P. No. 4246 of 2018, directed the concerned employer to apply under VISHWAS, 2026 within two weeks and disposed of the writ petition after modifying the earlier tribunal order.
The Madras High Court, in W.P. No. 38008 of 2024, disposed of proceedings after the employer expressed its willingness to avail the Scheme.
The Kerala High Court, Ernakulam Bench, has similarly issued directions in nineteen cases asking establishments to approach EPFO and settle their matters under VISHWAS, 2026.
EPFO Helpdesks
EPFO has established dedicated VISHWAS Cells and Helpdesks at all 153 Regional Offices for assisting employers in filing and completing their applications.
Detailed guidelines and FAQs are also available through EPFO.
EPFO Toll-Free Helpline: 1800-180-1820
Compliance Impact
Establishments having historical PF payment delays should immediately review their EPFO records, pending damages notices, orders, recoveries and litigation to determine whether they are eligible for settlement under VISHWAS, 2026.
Considering the substantially reduced damages rates, the Scheme may provide significant financial and litigation relief to establishments with old Section 14B / damages disputes.
Eligible employers should complete the required reconciliation, clear outstanding interest and submit their applications well before the 28 December 2026 deadline.
Key Takeaway
VISHWAS, 2026 provides a limited-time opportunity to settle long-pending EPF damages disputes at substantially reduced rates. Eligible establishments should review their cases immediately instead of waiting until the December 2026 deadline.
Source: Ministry of Labour & Employment, Press Information Bureau, Release dated 3 September 2026, Release ID 2306438.