If your company carries old ESI or PF disputes — pending court cases, damages notices or recovery proceedings — the next two months offer a rare chance to close them at lower cost.
1. ESIC New Amnesty Scheme: extended to 31 December 2026
The ESIC New Amnesty Scheme, 2025 originally ran from 1 October 2025 to 30 September 2026. On 29 October 2026, the Ministry of Labour & Employment announced a three-month extension to 31 December 2026, on the same terms.
It is a one-time scheme to reduce pending court cases through out-of-court settlement. The key features:
- Court cases filed up to 31 March 2025 are eligible for settlement.
- Ad hoc assessments can be settled by paying the actual contribution plus interest, with no penalty.
- Cases pending for more than 15 years with dues below ₹25,000 are eligible for closure.
- Where dues are already cleared, proceedings can be withdrawn on payment of 10% of the disputed amount.
- Cases filed over non-submission of records or delayed payment can be withdrawn, with court approval, once you have complied.
2. EPFO VISHWAS 2026: settle PF damages at reduced rates
VISHWAS, 2026 is a one-time EPFO scheme to settle disputes over damages and penalties under the EPF Act and the Code on Social Security. It came into effect on 29 June 2026 and stays open for six months, to about 28 December 2026.
For defaults before 14 June 2024, damages are recalculated at reduced rates, as reported:
| Delay in payment | Reduced damages |
|---|---|
| Up to 2 months | 0.25% per month |
| 2 to 4 months | 0.50% per month |
| More than 4 months | 1.00% per month |
Some conditions to know:
- Interest must be paid in full first.
- You must give an undertaking not to appeal further.
- Cases involving fraud or deliberate falsification of records are not eligible.
- Applications are made online through the EPFO employer portal, using a digital signature or e-sign.
3. Closing tomorrow: EPFO's Enrolment Campaign
A reminder that EPFO's Employees' Enrolment Campaign 2026, which lets you enrol employees who were missed from PF since 2009, closes on 31 October 2026.
Your year-end action list
- List every open ESI and PF matter: court cases, notices, assessments and recovery proceedings.
- Match each one to a scheme: ESIC Amnesty for ESI matters, VISHWAS for PF damages.
- Work out the settlement cost under each scheme, and compare it with continuing the dispute.
- Apply early. Both windows close in late December, and processing takes time.
- Fix the root cause so the same default does not happen again.
Old disputes cost money, management time and peace of mind. Closing them before the year ends is one of the best compliance decisions you can make this quarter.
This article is for general information and is not legal advice. Check the current scheme notifications and take professional advice for your situation.
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