The Employees' Provident Fund Organisation (EPFO) has launched VISHWAS 2026, a one-time settlement initiative offering eligible establishments an opportunity to resolve disputes related to damages imposed for delayed provident fund contribution payments. According to EPFO's implementation circular, Vide notification no. G.S.R. 525(E) dated June 29, 2026, the Central Government has notified VISHWAS 2026 as part of the EPF Scheme 2026, with the aim to facilitate amicable resolution of disputes relating to levy of damages under Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and Section 128 of the Code on Social Security, 2020. The scheme will remain available for six months from the date of notification and covers a range of pending damages-related matters, including cases under litigation, finalised orders where dues remain unpaid or partially paid, and cases where adjudication proceedings are pending or have not yet started. As per Mint, the initiative is expected to ease the burden on businesses that have unresolved EPF disputes while helping the EPFO recover pending dues without prolonged litigation.
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, or delayed remittance has occurred but no show-cause notice has been issued. According to Mint, the scheme applies only to disputes relating to damages under the relevant provisions of the EPF Act or the Code on Social Security. 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, and applicants are required to update PAN, email address and mobile number, provide details relating to the period of default and relevant orders or notices, submit proof of payment of interest and any damages already paid, and 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, after which a digitally signed settlement certificate will be made available through the employer's login.
VISHWAS 2026 offers reduced damages rates at graded levels for eligible defaults occurring before June 14, 2024. The recalculation structure includes 0.25% per month for defaults up to two months, 0.50% per month for defaults between two and less than four months, and 1% per month for defaults of four months and above. According to Mint, these rates apply in place of the normal damages otherwise leviable under the law. For employers who have 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 balance amount to settle the dispute. The concessional rates are available only for defaults or delays that occurred before June 14, 2024, while cases involving delays after this date will continue to be governed by the normal provisions relating to damages under the EPF law.
The scheme will not apply to establishments where damages have already been fully recovered, cases involving fraud, embezzlement or deliberate falsification of records, and cases where the employer has not paid the entire interest amount before applying. As per Mint, employers falling under these categories will have to continue under the existing legal process. To ensure smooth implementation, EPFO has established dedicated VISHWAS Cells and help desks at every regional office to assist employers throughout the application process. According to Mint, regional offices will also conduct regular reviews to monitor the scheme's progress and ensure timely disposal of applications. Lokesh Gupta, the regional provident fund commissioner-I, has urged employers to make use of the scheme, saying it provides an opportunity to resolve long-pending penalty disputes quickly through a conciliatory process while reducing the burden of litigation for both employers and the EPFO. The notification comes shortly after EPFO completed the migration of all member records to a centralised database, restoring online services for members and employers after a nationwide technology upgrade.
The new digital platform introduces automated pre-validation of provident fund claims, enabling the system to identify missing information or discrepancies before applications reach EPFO offices. Members will be notified of any errors in advance and guided on the required corrections, a move expected to improve first-time claim acceptance and reduce processing delays. According to Mint, the scheme represents a significant step forward in EPFO's modernization efforts, providing employers with a structured pathway to resolve long-standing disputes while maintaining the organization's recovery objectives. The move follows amendments introduced through the Finance Act, 2026, which aligned the Income Tax framework with the EPF & MP Act, making recognition under the Income Tax Act available only to provident funds that have obtained exemption under Section 17 of the EPF & MP Act, 1952.
