Employees’ Provident Fund Organisation (Image Source: iStock)
\n\nThe Employees’ Provident Fund Organisation (EPFO) has introduced a time-bound opportunity for employers to resolve outstanding provident fund (PF) penalty disputes through its VISHWAS 2026 scheme. The initiative allows eligible establishments to pay reduced damages for past compliance failures, potentially helping businesses avoid lengthy legal proceedings and settle pending cases. Employers have until December 28, 2026, to take advantage of the scheme, which became operational on June 29, 2026.
\n\nIt covers eligible defaults committed before June 14, 2024, and provides a revised penalty structure based on how long PF contributions remained unpaid.
\n\nThe initiative is aimed at reducing the backlog of pending disputes while encouraging employers to clear outstanding liabilities. However, businesses should note that the benefit is restricted to eligible damages and does not eliminate their obligation to pay statutory interest or outstanding PF contributions.
\n\nUnder the scheme, EPFO has introduced a revised calculation method for damages arising from delayed remittance of provident fund contributions.
\n\nThe applicable penalty depends on the duration of the delay, with different monthly rates prescribed for different default periods.
\n\nImportantly, the lowest rate of 0.25 per cent does not automatically apply to every employer. The final amount…
Original source: https://www.timesnownews.com/business-economy
