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EPFO VISHWAS Scheme: Slash PF Penalties
22 Oct
Summary
- Pay reduced penalties from 37% yearly to 1% monthly.
- Scheme covers delayed PF contributions before June 14, 2024.
- Apply online by December 28, 2026, for relief.
Employers now have an opportunity to settle delayed Provident Fund (PF) contribution penalties through the EPFO's VISHWAS, 2026 scheme. This initiative significantly reduces penalties, lowering them from a potential 37% annually to a maximum of 1% monthly based on the duration of the delay. Specific rates apply: 0.25% per month for delays up to two months, 0.50% for delays between two and four months, and 1% for delays exceeding four months.
The scheme is open for cases involving delayed PF contributions before June 14, 2024. It is designed to assist employers with various situations, including challenged penalty orders, pending recovery, or even cases where no penalty notice has yet been issued. Applications must be submitted online via the EPFO Employer Portal by December 28, 2026.
To utilize this settlement, employers must first settle any outstanding interest on delayed contributions. Upon successful online application and payment, which must be made within 15 days of receiving the revised amount (with a possible extension), all related legal proceedings will be considered closed. This provides a crucial window for employers to resolve long-pending disputes.
