The EPFO has introduced VISHWAS 2026 which is a one-time dispute settlement scheme to help employers resolve pending PF damages cases with much lower financial penalties. The initiative will encourage voluntary compliance and save businesses from long-standing PF default disputes.
The scheme came into effect on 29 June 2026 and will be open for one-time period of six months as no extension has been announced. In this period employers applying for the scheme will have to submit their application.
Who’s going to benefit?
VISHWAS 2026 is applicable to employers with delays or defaults in PF contributions that occurred before June 14, 2024. Only cases falling within that period can be considered in the settlement scheme.
Reduced Damages Structure
Under VISHWAS 2026, EPFO introduced a simplified and concessional penalty structure based on the duration of the default:
Delay up to 2 months: 0.25% per month. Delay of more than 2 months but less than 4 months: 0.50% per month. Delay of 4 months or more: 1.00% per month.
These concessional rates are significantly lower than the standard damages typically imposed under the EPF Act which provides very significant financial relief to interested employers.
Conditions for Availing the Scheme
To participate in VISHWAS 2026, employers must satisfy certain mandatory conditions:
Clear all statutory interest payable under Section 7Q of the EPF Act or Section 127 of the Code on Social Security, where applicable. Sign a legally binding undertaking that any and all pending appeals or legal proceedings related to the damages case can be dropped. Accept the recalculated damages amount determined by the EPFO.
How do I apply for it?
Employers can fill out applications through the EPFO Employer Portal. The application process includes uploading the necessary documents and accepting the revised damages calculation. Once the revised amount is communicated to the employer, they need to accept it within 15 days to complete the settlement process.
As a major relief for employers
VISHWAS 2026 will be available for thousands of employers to resolve decades-old PF disputes with less litigation and greater compliance. With lower penalties and a more streamlined system to settle disputes, the EPFO aims to facilitate business regularization of Provident Fund obligations without adding any financial burden to their bottom line.
The employers with PF default cases should review their pending matters as soon as possible and take advantage of this limited time before the scheme closes.
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