The (EPFO) has launched VISHWAS 2026, a one-time dispute resolution scheme that enables eligible employers to settle pending disputes over damages imposed for delayed provident fund (PF) contributions by paying reduced penalties.
The scheme, which will remain open for six months from June 29, 2026, applies to specified disputes relating to damages under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, and seeks to facilitate the settlement of long-pending cases.
What is EPFO VISHWAS 2026?
VISHWAS 2026 is a one-time settlement scheme for disputes relating to damages levied under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, or Section 128 of the Code on Social Security, 2020.
Under the EPF law, employers that delay depositing provident fund contributions are liable to pay:
- Interest on delayed remittance under Section 7Q of the EPF Act
- Damages, or penalties, for the delay.
While the interest must be paid in full, the scheme allows eligible employers to settle the damages component at concessional rates, subject to prescribed conditions.
Who is eligible to apply?
Employers can apply under VISHWAS 2026 if their case falls under any of the following categories:
- A damages order has already been passed and the matter is pending before a court or tribunal.
- A final damages order has been issued but recovery has not been completed.
- A show-cause notice has been issued, but the final damages order has not yet been passed.
- Delayed remittance has occurred but no show-cause notice has been issued.
The scheme applies only to disputes relating to damages under the relevant provisions of the EPF Act or the Code on Social Security.
What are the concessional damages under the scheme?
The reduced rates are available only for defaults that occurred before June 14, 2024.
|
Period of default |
Damages payable under VISHWAS 2026 |
| Up to 2 months | 0.25% per month |
| More than 2 months and up to 4 months | 0.50% per month |
| More than 4 months | 1% per month |
These rates apply in place of the normal damages otherwise leviable under the law.
What conditions must employers fulfil?
Employers must first pay the entire interest payable under Section 7Q of the EPF Act (or Section 127 of the Code on Social Security) before submitting an application.
The application must be filed online through the EPFO Employer Portal using a Digital Signature Certificate (DSC) or e-sign.
Applicants are also required to:
- Update PAN, email address and mobile number, if required.
- Provide details relating to the period of default and the relevant orders or notices.
- Submit proof of payment of and any damages already paid.
- Furnish an undertaking that no further appeal or legal proceeding will be initiated after settlement.
Once EPFO approves the application, the settlement amount must be paid within 15 days. A digitally signed settlement certificate will then be made available through the employer’s login.
Which cases are not covered?
The scheme does not apply in the following situations:
- Damages have already been fully recovered.
- The case involves fraud, misappropriation or deliberate falsification of records.
- The employer has not paid the entire interest due before applying.
Such cases will continue to be dealt with under the existing legal framework.
What if an employer has already made part payment?
Where an employer has already paid part of the damages, EPFO will recalculate the amount using the concessional rates under VISHWAS 2026.
If the amount already paid exceeds the recalculated damages, the excess will not be refunded or adjusted against any other damages order.
If the amount already paid is lower than the revised damages, the employer will have to pay only the amount to settle the dispute.
The concessional rates are available only for defaults or delays that occurred before June 14, 2024. Cases involving delays after this date will continue to be governed by the normal provisions relating to damages under the EPF law.