How EPFO can cut penalty for late PF contribution
The Employees' Provident Fund Organisation (EPFO) can reduce the penalty for late Provident Fund (PF) contributions through its VISHWAS, 2026 scheme. This one-time settlement allows employers to close long-standing disputes by paying a significantly reduced penalty amount, instead of the previous high rates. The Ministry of Labour & Employment announced that under normal rules, the penalty for late PF deposits could reach 37% per year. However, under VISHWAS, 2026, the penalty varies based on the delay duration:
- Up to 2 months: Pay only 0.25% per month
- 2 to 4 months: Pay only 0.50% per month
- Beyond 4 months: Pay only 1% per month
Eligible cases for relief under VISHWAS, 2026 include challenges to orders for damages under Section 14B of the PF code, pending or partial recovery under Section 14B, notices issued under Section 14B or 128 but with a pending final decision, or notices yet to be issued. Employers can apply online through the EPFO Employer Portal, clear any outstanding interest on delayed PF contributions, and complete the application process digitally.
The process is expected to close on December 28, 2026, with a 15-day payment window following approval.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
