Years-old EPF compliance disputes need not remain a continuing challenge. EPFO’s VISHWAS, 2026 Scheme introduces a one-time settlement opportunity, offering eligible employers a pathway to resolve legacy damages and penalty-related matters arising from defaults before 14 June 2024.
The Employees’ Provident Fund Organisation (EPFO), under the Ministry of Labour & Employment, Government of India, has rolled out a significant relief measure for employers grappling with pending damages and penalty proceedings. EPFO One-Time Settlement Scheme — VISHWAS, 2026 — offers a one-time, structured opportunity to resolve disputes arising under Section 14B of the EPF & MP Act, 1952, and Section 128 of the Code on Social Security, 2020, without the delay and uncertainty of prolonged litigation.
For employers who have been carrying unresolved EPF damages or penalty matters — whether in litigation, under recovery, or still at the notice stage — this is worth immediate attention. The window is time-bound, and eligibility conditions are specific.
What Is VISHWAS, 2026?
PF VISHWAS Scheme 2026 has been notified vide G.S.R. 525(E) dated 29 June 2026, and came into effect the same day. It is designed to encourage voluntary compliance, cut down litigation pending before various judicial forums, and give employers a transparent, digital, time-bound route to settle eligible damages and penalty disputes.
Effective period: 29 June 2026, for a duration of six months.
Who Can Apply: Eligible Cases
The scheme casts a fairly wide net, covering:
- Cases where damages or penalty orders are currently pending before any judicial forum
- Final damages/penalty orders where recovery is pending or has only been partially effected, including Recovery Certificate cases
- Cases where a notice has been issued but no final order has yet been passed
- Cases where no notice for damages/penalty has been issued so far
In effect, employers at almost every stage of the damages/penalty lifecycle — from pre-notice to post-order recovery — have a route into the scheme.
The Financial Incentive: Concessional Rates
The core attraction of VISHWAS, 2026 is the recalculation of damages/penalty at significantly reduced rates, applicable to defaults relating to periods prior to 14 June 2024:
| Period of Default | Concessional Rate |
| Up to 2 months | 0.25% per month |
| More than 2 months, less than 4 months | 0.50% per month |
| 4 months and above | 1.00% per month |
These rates represent a marked reduction from the damages typically levied under Section 14B, making the scheme financially attractive for employers with legacy defaults.
Conditions for Availing the Scheme
Relief under VISHWAS, 2026 is not unconditional. To qualify, an employer must:
- Clear all interest dues payable under Section 7Q of the EPF & MP Act, 1952 (or the corresponding Section 127 of the Code on Social Security, 2020, where applicable) — and this must be done before the application is submitted.
- Furnish an undertaking confirming that no further appeal will be pursued in respect of the dispute settled under the scheme.
In short: interest must be settled upfront, and the settlement is intended to be final.
Who Is Excluded
The scheme carves out clear exclusions. It will not apply where:
- Damages/penalty have already been fully recovered
- The matter involves fraud, misappropriation, or deliberate falsification of records
- The applicable statutory interest has not been fully deposited
Employers should assess their cases against these exclusions before assuming eligibility.
How to Apply
The process has been kept digital and centralised:
- Applications are to be filed online through the EPFO Employer Portal
- Authentication requires a Digital Signature Certificate (DSC) or e-Sign
- EPFO has set up dedicated VISHWAS Cells across its field offices to assist employers and ensure applications are processed within the scheme timeline
What Employers Should Do Now
With a fixed six-month window, the practical first step is a review — not an application. Employers should take stock of:
- Pending EPF damages/penalty notices and orders
- Ongoing litigation on 14B/Section 128 matters
- Partially recovered or Recovery Certificate cases
- Any legacy defaults predating 14 June 2024 that could benefit from the concessional rates
A structured review against the eligibility and exclusion criteria above will indicate whether an application under VISHWAS, 2026 makes sense — and if it does, the interest-clearance step should be planned for well ahead of the six-month deadline.
For a case-specific assessment of eligibility under VISHWAS, 2026, or assistance with the application process, reach out to our Labour Law advisory team.
