Employers Can Settle Old PF Cases by Paying Much Lower Penalty

Tarni Sahu
3 Min Read

Employers with long-pending PF disputes have a limited-time opportunity to settle them at a much lower cost.

The Ministry of Labour & Employment has announced that the VISHWAS, 2026 Scheme will remain open until December 28, 2026.

The scheme is designed as a one-time settlement option for employers who want to close pending cases related to delayed PF contributions.

Penalty Slashed Under VISHWAS 2026

Under the regular rules, the penalty for delayed PF deposits can go up to 37% per year.

However, the VISHWAS 2026 Scheme offers a much lower penalty based on the delay period:

Delay up to 2 months: 0.25% per month

Delay of 2 to 4 months: 0.50% per month

Delay beyond 4 months: 1% per month

This could significantly reduce the amount employers need to pay to settle eligible cases.

How Can Employers Apply?

The entire application process has been made available online.

Before applying, employers must first clear all outstanding interest on delayed PF contributions.

After that, they can log in to the EPFO Employer Portal, open the VISHWAS 2026 module and select the relevant category.

Employers will then need to upload the required documents and complete the process using digital authentication.

The system will automatically calculate the revised penalty amount.

What Happens After the Payment?

Once the application is processed, employers will get 15 days to make the required payment.

An automatic extension of another 15 days may also be available wherever required.

After the payment is confirmed, EPFO will issue a digitally signed Settlement Certificate.

Once the certificate is issued, the related proceedings pending before a court or tribunal will stand closed, as per the scheme.

Deadline Is December 28, 2026

Employers who want to take advantage of the reduced penalty should not wait until the last moment.

The VISHWAS 2026 Scheme will remain available only until December 28, 2026.

For help with the application, dedicated VISHWAS Cells and Helpdesks have been set up at 153 EPFO Regional Offices across the country.

Employers can also contact the EPFO toll-free helpline at 1800-180-1820 for assistance.

The scheme gives eligible employers a chance to settle old PF-related proceedings at significantly reduced penalty rates before the deadline.

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