A Time-Bound Opportunity for Employers
The Employees’ Provident Fund Organisation has introduced VISHWAS, 2026, a special settlement mechanism for resolving disputes relating to damages imposed for delayed provident fund remittances.
The scheme covers proceedings under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, and Section 128 of the Code on Social Security, 2020.
EPFO’s circular dated 9 July 2026 provides the eligibility conditions, reduced damages rates, online application process and operational guidelines for implementing the scheme.
For employers facing old PF damages notices, recovery proceedings or pending litigation, the scheme offers an opportunity to close disputes at rationalised rates.
Duration of the Scheme
VISHWAS, 2026 became effective from 29 June 2026 and will remain in force for six months from the date of notification.
Since employers may need time to reconcile past PF remittances, Section 7Q interest, previous payments and litigation records, eligible establishments should begin reviewing their cases without delay.
Cases Covered Under VISHWAS, 2026
The scheme applies to the following categories:
Category | Coverage |
|---|---|
Ongoing litigation | Section 14B or Section 128 orders disputed before a court, tribunal or other forum |
Finalised orders | Damages orders where the amount is unpaid or partly paid |
Notice issued cases | Damages notice issued but final order not yet passed |
Notice not issued cases | Eligible defaults where damages proceedings are yet to begin |
The inclusion of pre-adjudication cases makes the scheme relevant even where a final damages order has not been issued.
Reduced Damages Rates
For eligible defaults relating to periods before 14 June 2024, damages will be calculated at the following rates:
Period of default | Damages rate per month |
|---|---|
Up to two months | 0.25% |
More than two months but less than four months | 0.50% |
Beyond four months | 1.00% |
These reduced rates may provide substantial financial relief in older cases where damages were calculated at higher rates.
The actual benefit will depend on the default period, original order, amounts already paid and applicable interest.
Full Payment of Section 7Q Interest Is Mandatory
The benefit of reduced damages is available only when the employer has fully paid the corresponding interest under:
- Section 7Q of the EPF Act, 1952, or
- Section 127 of the Code on Social Security, 2020.
The required interest must be deposited before submitting the application.
Employers should prepare a wage month-wise reconciliation showing:
- PF contribution due date;
- Actual payment date;
- Period of delay;
- Interest payable;
- Interest already deposited; and
- Balance amount, if any.
Proof of interest payment must be uploaded with the application.
Settlement Means Final Closure
The employer must provide an undertaking that no further appeal or legal proceeding will be filed after settlement under VISHWAS, 2026.
In pending litigation matters, the establishment may also have to take appropriate steps for withdrawal or closure of the proceedings.
Before opting for the scheme, employers should compare:
- Revised damages liability;
- Strength of the pending legal case;
- Amount already deposited;
- Cost of continuing litigation; and
- Benefit of obtaining final closure.
Treatment of Amounts Already Paid
Where damages have been partly paid:
- If the amount already paid is less than the revised VISHWAS liability, the employer must pay the difference.
- If the amount paid exceeds the revised liability, no refund will be admissible.
Pre-deposits made in appeal proceedings will also be considered while determining the amount payable, subject to the scheme’s adjustment conditions.
Cases Not Eligible
VISHWAS, 2026 will not apply to:
- Cases where damages have already been fully recovered;
- Matters involving fraud, misappropriation or deliberate falsification of records; and
- Cases where the corresponding interest has not been fully paid.
The scheme is therefore intended for genuine PF remittance delays and pending damages disputes, rather than cases involving intentional wrongdoing.
Online Application Process
Applications must be submitted through the EPFO employer portal.
The employer will generally be required to:
- Select the appropriate case category.
- Enter the period of default and order or notice details.
- Provide the amount of damages levied and paid.
- Upload proof of interest and damages payments.
- Submit the prescribed declarations and undertaking.
- Authenticate the application through DSC or e-sign.
After submission, the application will be verified by the EPFO field office. The competent authority may approve, reject or return it for clarification.
Once approved, the employer must make payment within 15 days from the date of approval.
Employers should verify the calculation carefully before generating the challan because the circular provides that a generated challan cannot be cancelled.
After successful payment and verification, a digitally signed settlement certificate will be made available on the employer portal.
Employer Action Points
Eligible establishments should immediately:
- Identify all pending Section 14B notices, orders and litigation;
- Prepare a month-wise PF delay statement;
- Confirm full payment of Section 7Q interest;
- Reconcile earlier damages payments and pre-deposits;
- Calculate the likely benefit under VISHWAS, 2026;
- Obtain management approval before accepting settlement;
- Keep DSC, authorised signatory and portal details updated; and
- Preserve the final settlement certificate and payment records.
Conclusion
The EPFO VISHWAS Scheme 2026 provides a valuable opportunity for employers to resolve long-pending PF damages disputes at reduced rates.
However, the benefit is subject to complete payment of interest, submission of proper documents and final closure of litigation. Employers should review eligible cases promptly and complete the application within the limited scheme period.
