Pending PF damages cases? EPFO’s VISHWAS, 2026 offers one-time settlement window

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.

“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,” EPFO said in its implementation circular.

EPFO has issued operational guidelines for implementation of the scheme, which aims to facilitate amicable settlement of disputes relating to damages under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and Section 128 of the Code on Social Security, 2020

What is the Vishwas, 2026?

VISHWAS, 2026 is a one-time, six-month settlement window introduced by EPFO to enable eligible establishments to resolve cases relating to damages under Section 14B or Section 128 of the Code on Social Security at reduced, graded rates, in a transparent and time-bound manner,” EPFO said in its frequently asked questions on the scheme.

Six-month window for eligible cases

The scheme will remain available for six months from the date of notification and will cover 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.

Reduced damages rates offered

For eligible defaults occurring before June 14, 2024, damages will be recalculated at revised rates under the scheme.

• 0.25% per month for defaults up to two months.

• 0.50% per month for defaults between two and less than four months.

-1% per month for defaults of four months and above.

• No waiver of principal dues or interest

EPFO has clarified that the scheme applies only to damages and does not provide any waiver of principal provident fund contributions or interest liabilities. Employers must deposit the applicable interest amount for the relevant default period before applying for settlement benefits.

Online application and settlement certificate

Eligible employers can apply through the EPFO Employer Portal by selecting the VISHWAS, 2026 option and submitting relevant documents, including damages notices/orders, payment details and prescribed undertakings.

After verification, EPFO will communicate the recalculated damages amount through the portal. Employers will be required to accept and deposit the amount within 15 days.

Following full payment, EPFO will issue a digitally signed VISHWAS, 2026 Certificate, which will serve as proof of settlement and can be submitted for withdrawal of related court or CGIT proceedings.

Certain cases excluded

The scheme will not apply to establishments where damages have already been fully recovered, cases involving fraud, misappropriation or deliberate falsification of records, and cases where disputed interest has not been fully deposited.

The organisation has directed its regional and zonal offices to identify eligible establishments, conduct outreach activities and assist employers during the implementation period.