EPFO Vishwas 2026: One-Time Settlement for PF Damages
Why in the news
EPFO opened a limited-period settlement window so employers can close old disputes over late provident fund payments at revised damage rates. The goal is to clear litigation while protecting members’ PF money.
Key facts
- Implementer: EPFO, under the Ministry of Labour and Employment.
- Window: from 29 June 2026 for six months; eligible cases are defaults committed before 14 June 2024.
- Process: fully online, transparent and time-bound.
- Scope: only the damages and penalty part is settled; employee contributions and interest still have to be paid.
| Length of default | Damage rate per month |
|---|---|
| Up to 2 months | 0.25% |
| 2 months to under 4 months | 0.50% |
| More than 4 months | 1% |
Objectives
- Encourage voluntary compliance by employers.
- Cut long-running litigation before EPFO authorities, tribunals and courts.
- Speed up settlement and safeguard employees’ PF interests.
Background
- Late deposits can attract damages under Section 14B and interest at 12% a year under Section 7Q.
- The window is compared with Vivad se Vishwas for income-tax disputes.
- EPFO runs three schemes: EPF (1952), Employees’ Pension Scheme (1995) and EDLI (1976), for over 7 crore active members.
Exam angle
- Nodal body: EPFO; ministry: Labour and Employment.
- Dates: effective 29 June 2026, six months; defaults before 14 June 2024.
- Related terms: Section 14B, Section 7Q, Section 128 of the Code on Social Security, 2020.