Vishwas Scheme 2025: EPFO’s new initiative to settle long-pending provident fund (PF) cases

In an effort to reduce litigation and simplify compliance, the Employees’ Provident Fund Organisation (EPFO) has launched the Vishwas Scheme to address and resolve long-standing disputes over penal damages for delayed payment of provident fund (PF) dues.

Earlier, the penalty rates were quite high. Before 2024, they ranged from 5% to 25% per year, and for delays before 2008, they went up to 37% per year. These high rates led to a large number of court cases.

To resolve this, the EPFO has launched the Vishwas Scheme.

• 0.25% per month for delays up to 2 months

• 0.50% per month for delays up to 4 months

• 1% per month for delays beyond that

The scheme will be active for six months and may be extended for another six months. It covers:

• Ongoing court cases under Section 14B (in CGIT, High Courts, or Supreme Court)

• Finalised but unpaid penalty orders

• Cases where a notice has been issued, but the final order is still pending

If an employer complies under the Vishwas Scheme, all pending cases related to that issue will be closed.

In another significant development, the Central Board also amended the earlier flat rate of 1% per month notified on 14th June 2024 for default up to four months to a similar graded rate.