Summary of this article
High Courts have backed settlement of long-pending PF damage disputes.
VISHWAS 2026 offers sharply reduced damages for eligible employers.
Applications under the scheme close on December 28, 2026.
The Bombay, Madras, and Kerala High Courts have directed employers involved in long-pending Provident Fund (PF) damage disputes to pursue settlement under the Employees’ Provident Fund Organisation’s (EPFO) VISHWAS 2026 scheme, ahead of the December 28, 2026 deadline.
The scheme offers employers an opportunity to settle eligible disputes involving delayed PF contributions made before June 14, 2024, at substantially lower damage rates. EPFO has clarified that the December 28 deadline will not be extended.
What VISHWAS 2026 Offers
Under the regular rules, damages for delayed PF contributions can go up to 37 per cent annually. VISHWAS 2026 has prescribed lower rates depending on the length of the delay.
For delays of up to two months, damages are 0.25 per cent per month. Delays of more than two months and up to four months attract damages of 0.50 per cent per month. For delays exceeding four months, the rate is one per cent per month.
The scheme covers eligible cases where penalty proceedings are pending before a court or tribunal. It also covers cases where EPFO has passed a penalty order, but recovery is pending, either fully or partly.
Employers can also apply where EPFO has issued a notice proposing damages, but a final order has not been passed. Cases where EPFO records show delayed PF payments but no penalty notice has been issued are also covered, subject to the eligibility conditions.
High Courts Direct Employers Towards Settlement
The Bombay High Court’s Pune Bench has directed an employer involved in a PF damage dispute to apply under VISHWAS 2026 and settle the matter under the scheme.
The Madras High Court has disposed of a writ petition after the employer expressed willingness to use the settlement mechanism. The Kerala High Court’s Ernakulam Bench has issued similar directions in 19 separate cases, asking establishments to approach EPFO for settlement under VISHWAS 2026.
The court proceedings have brought attention to the scheme as a route for eligible establishments with pending PF damage disputes.
How Employers Can Apply
Employers have to first clear all outstanding interest on delayed PF contributions before submitting a VISHWAS 2026 application.
Applications have to be filed through the EPFO Employer Portal. Employers can access the VISHWAS 2026 module, select the relevant category, upload the required documents, and complete digital authentication.
The system calculates the revised damage amount based on the applicable rate. Employers have 15 days to make the payment, with an additional 15-day period available where required.
After payment has been confirmed, EPFO issues a digitally signed Settlement Certificate. Proceedings covered by the settlement that are pending before a court or tribunal then stand closed.
EPFO has set up dedicated VISHWAS cells and help desks at all 153 regional offices. Employers can also contact the toll-free helpline at 1800-180-1820 for assistance.
