Employers facing penalties for a delayed payment of Provident Fund (PF) contributions can get relief under the EPFO’s VISHWAS, 2026 scheme. The government has launched VISHWAS, 2026, a one-time settlement scheme that allows employers to close long-pending disputes by paying a significantly reduced penalty amount.

The Ministry of Labour & Employment in a release said that under normal rules, the penalty for late PF deposit can be as high as 37% per year. Under VISHWAS, 2026, the penalty for employers has been reduced as follows:

Delay for up to 2 months: Pay only 0.25% per month,

Delay from 2 to 4 months: Pay only 0.50% per month,

Delay beyond 4 months: Pay only 1% per month.

Cases relating to a delayed payment of Provident Fund (PF) contributions prior to June 14, 2024, will be considered, provided the employer falls within specified categories, the Ministry of Labour says

Eligible cases of employers for relief from penalties for delayed PF contributions

Under the VISHWAS, 2026, scheme, eligible cases for relief from penalties are-

• Where orders for damages under Section 14B have been challenged before any judicial forum.
• Where orders under Section 14B have been issued but recovery is pending or partly made.
• Where notices have been issued under Section 14B or 128 of the code but the final decision is pending.
• Where notices are yet to be issued.

The coverage includes cases where proceedings relating to penalties are currently pending before a court or a tribunal.

Employers who have received a notice proposing a penalty, but are yet to receive a final order, may also be eligible. The benefit may extend to cases where the Employees’ Provident Fund Organisation’s (EPFO) records show delays in PF contributions, but no penalty notice has been issued so far.

Employers are required to first clear all outstanding interest on delayed PF contributions before submitting an application.

Employers can login to the EPFO Employer Portal at https://unifiedportal-emp.epfindia.gov.in, access the VISHWAS, 2026 module. Select the applicable category, upload the required documents and complete the process through digital authentication.

The system will automatically calculate the revised penalty amount.

To avail the benefit under the VISHWAS scheme, employers should apply by December 28, 2026.

The employer will have 15 days to make the payment, and there will be an automatic 15-day extension if necessary. After the payment is confirmed and the settlement certificate is digitally signed by the EPFO, the processes before the relevant court or tribunal shall be deemed closed.