VISHWAS 2026 Allows Employers to Settle Old EPF Penalty Disputes at Lower Cost

The government has introduced VISHWAS 2026, a one-time settlement scheme for employers facing old disputes over penalties on delayed EPF contributions. The scheme allows eligible establishments to settle these cases by paying a reduced penalty. 

The scheme will remain open until December 28, 2026, and the government has said that the deadline will not be extended. 

EPF Penalty Reduced Under VISHWAS 2026 

Under the existing rules, the penalty for delayed PF deposits can go up to 37% per year. VISHWAS 2026 provides lower penalty rates based on how long the payment was delayed. 

For delays of up to two months, the penalty is 0.25% per month. For delays of more than two months and up to four months, it is 0.50% per month. For delays of more than four months, the rate is 1% per month. 

Which EPF Disputes are Covered? 

The scheme covers eligible cases involving delayed PF contributions made before June 14, 2024. This includes cases where penalty proceedings are pending before a court or tribunal. 

It also covers cases where EPFO has already passed a penalty order but the recovery is still partly or fully pending. Employers can also apply where EPFO has issued a penalty notice but has not passed a final order. 

Cases where EPFO records show delayed PF payments but no penalty notice has been issued can also be covered, subject to the conditions of the scheme. 

How Employers Can Apply? 

Employers first need to clear all outstanding interest on delayed PF contributions. They can then log in to the EPFO Employer Portal, select the VISHWAS 2026 module and upload the required documents before completing digital authentication. 

The system will calculate the revised penalty. Employers will have 15 days to make the payment, with another 15-day automatic extension wherever required. After the payment is confirmed, EPFO will issue a digitally signed Settlement Certificate and the related court or tribunal proceedings will stand closed. 

High Courts Back the Scheme 

Several High Courts have also directed employers to use the scheme for settling their EPF penalty disputes. 

The Bombay High Court's Pune Bench directed an employer in WP No. 4246 of 2018 to apply under VISHWAS 2026 within two weeks. The Madras High Court disposed of WP No. 38008 of 2024 after the employer agreed to use the scheme. 

The Kerala High Court's Ernakulam Bench has issued similar directions in 19 cases, asking the establishments involved to approach EPFO for settlement under VISHWAS 2026. 

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Conclusion 

VISHWAS 2026 gives eligible employers a way to settle old EPF penalty disputes at reduced rates. The scheme is open until December 28, 2026, and EPFO has set up VISHWAS Cells and Helpdesks at all 153 Regional Offices to assist applicants. 

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