The Employees’ Provident Fund Organisation (EPFO) has launched VISHWAS 2026, a one-time settlement scheme that gives employers an opportunity to resolve long-pending PF penalty disputes by paying reduced damages.
The scheme is aimed at clearing old cases, reducing court battles, and helping employers settle disputes without lengthy legal proceedings.
It will remain open for six months from June 29, 2026.
What Is EPFO VISHWAS 2026?
Under the scheme, employers can settle disputes related to PF damages, which are penalties imposed for delaying Employees’ Provident Fund (EPF) contributions.
Instead of paying the full penalty, eligible employers can settle their cases by paying reduced damages, provided they meet all the conditions laid down by EPFO.
However, the scheme only applies to disputes related to damages under Section 14B of the EPF Act, 1952, or Section 128 of the Code on Social Security, 2020.
Who Can Apply?
The scheme covers several types of pending PF damage disputes, including:
Cases pending before a court or tribunal after a damages order has been issued.
Cases where the final damages order has been passed but recovery is still pending.
Cases where a show-cause notice has been issued but the final order is yet to be passed.
Cases where EPF contributions were deposited late but no show-cause notice has been issued.
As long as the dispute relates to PF damages under the eligible legal provisions, employers may be able to apply.
How to Apply for VISHWAS 2026
Employers must submit their application through the EPFO Employer Portal using a Digital Signature Certificate (DSC) or e-sign.
Before applying, employers must first pay the entire interest amount due under Section 7Q of the EPF Act or Section 127 of the Code on Social Security, 2020.
They also need to:
Update PAN, email ID, and mobile number if required.
Provide details of the default period and related orders.
Mention the damages imposed and any amount already paid.
Upload proof of payment wherever applicable.
Submit a declaration confirming that the full interest has been paid.
Give an undertaking that no further appeal will be filed after settlement.
Once EPFO approves the application, the settlement amount must be paid within 15 days. After payment and verification, a digitally signed settlement certificate will be made available in the employer’s EPFO login.
Important Conditions to Keep in Mind
To avail of the scheme, employers must satisfy a few key conditions:
Full interest payment must be made before submitting the application.
The application must be filed online through the EPFO Employer Portal.
It must be authenticated using DSC or e-sign.
The settlement amount must be paid within 15 days of approval.
Employers must agree not to file any further appeal or legal proceeding related to the same dispute after settlement.
Who Cannot Benefit from the Scheme?
Not every employer will be eligible for VISHWAS 2026.
According to experts, the scheme does not apply to:
Cases where the entire damages have already been recovered.
Cases involving fraud, misappropriation, or deliberate falsification of records.
Employers who have not fully paid the interest amount related to the dispute.
Such cases will continue to be handled under the existing legal process.
Reduced Penalty Rates Under VISHWAS 2026
The scheme applies only to defaults that occurred before June 14, 2024.
EPFO will calculate damages at concessional rates based on the length of the delay:
0.25% per month for delays of up to 2 months.
0.50% per month for delays of more than 2 months and up to 4 months.
1% per month for delays exceeding 4 months.
These lower rates can significantly reduce the penalty amount for eligible employers.
What If You Have Already Paid Part of the Damages?
If an employer has already made a partial payment, EPFO will recalculate the damages using the concessional rates under VISHWAS 2026.
If the amount already paid is less than the revised damages, the employer must pay the remaining balance.
If the amount already paid is more than the revised damages, no refund will be issued.
The excess amount also cannot be adjusted against any future or existing PF damage orders for the same period.
Overall, VISHWAS 2026 offers eligible employers a chance to settle old PF damage disputes at reduced rates while avoiding prolonged litigation, provided they meet all the conditions set by EPFO.
