Govt launches VISHWAS 2026 scheme to settle long-pending PF penalty disputes
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The Centre has launched VISHWAS, 2026, a one-time settlement scheme aimed at helping employers resolve long-pending disputes related to delayed Provident Fund (PF) contributions by paying substantially reduced penalty amounts.
The scheme will remain open until December 28, 2026, and the government has said the deadline will not be extended. Employers with eligible cases have been encouraged to apply before the closing date.
Penalties slashed under one-time settlement scheme
Under the existing provisions, penalties for delayed PF deposits can be as high as 37% per annum. VISHWAS, 2026 provides for significantly lower penalty rates based on the duration of the delay.
Under the scheme, employers will have to pay:
Up to two months’ delay: 0.25% per month
More than two months and up to four months: 0.50% per month
More than four months: 1% per month
The scheme covers eligible cases involving delays in PF payments made before June 14, 2024.
These include cases where penalty proceedings are pending before a court or tribunal; where the Employees’ Provident Fund Organisation (EPFO) has already passed a penalty order but recovery remains partly or fully pending; where EPFO has issued a penalty notice but has not yet passed a final order; and where EPFO records show delays but no penalty notice has been issued.
High courts direct employers to use VISHWAS
The scheme has also received judicial backing in several cases. The Bombay High Court’s Pune Bench, in Writ Petition No. 4246 of 2018, directed an employer to apply under VISHWAS, 2026 within two weeks and modified the earlier tribunal order before disposing of the petition.
The Madras High Court, in Writ Petition No. 38008 of 2024, disposed of the matter after the employer expressed willingness to avail of the scheme, bringing the writ petition and related tribunal proceedings to a close.
The Kerala High Court’s Ernakulam Bench has issued similar directions in 19 separate cases, directing the concerned establishments to approach EPFO and settle their disputes under VISHWAS, 2026.
Online application, 15-day payment window
The settlement process has been made fully online. Employers must first clear all outstanding interest on delayed PF contributions before submitting an application. They can then access the VISHWAS, 2026 module through the EPFO Employer Portal, select the applicable category, upload the required documents and complete the process through digital authentication.
The system will automatically calculate the revised penalty amount. Employers will have 15 days to make the payment, with an automatic extension of another 15 days wherever required.
Once payment is confirmed, EPFO will issue a digitally signed Settlement Certificate. Proceedings pending before a court or tribunal will thereafter stand closed.
EPFO has set up dedicated VISHWAS Cells and helpdesks at all 153 Regional Offices across the country to assist employers. Detailed guidelines and frequently asked questions are available on the EPFO website. Employers can also contact the toll-free helpline at 1800-180-1820. The government has urged eligible employers to take advantage of the scheme before it closes on December 28, 2026.