The scheme, notified as part of the EPF Scheme, 2026, came into force on June 29, and will remain open for six months. It covers disputes arising under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, and the corresponding provisions under the Code on Social Security, 2020.
What is VISHWAS 2026?
VISHWAS, 2026 is designed to facilitate the amicable settlement of disputes relating to damages levied on employers for delayed PF remittances. The scheme provides a limited-time opportunity for eligible establishments to resolve pending cases by paying damages at concessional rates, subject to prescribed conditions.
Which cases are eligible?
The scheme covers a wide range of pending cases.
These include disputes where damage orders are under challenge before courts or tribunals, finalised orders where the damages have not yet been fully recovered, cases where a notice has been issued but the final order is pending, as well as instances where no notice has yet been issued for initiating damage proceedings.
What are the reduced damage rates?
For defaults that occurred before June 14, 2024, damages under VISHWAS, 2026 will be recalculated at concessional rates. Employers will pay damages at 0.25% per month for defaults of up to two months, 0.50% per month for defaults of more than two months but less than four months, and 1% per month for delays exceeding four months.
What conditions must employers fulfil?
To avail themselves of the scheme, employers must first pay the entire interest liability under Section 7Q of the EPF Act or the corresponding provision under the Social Security Code for the relevant period of default. They must also give an undertaking that they will not pursue any further appeal or legal proceedings once the dispute is settled under VISHWAS, 2026.
How will part payments be treated?
The circular makes it clear that where an employer has already paid more than the revised damages calculated under the scheme, no refund will be available and the excess amount cannot be adjusted against the same demand.
Conversely, if the amount already paid is lower than the revised damages, the employer will have to pay the balance. It also specifies how statutory pre-deposits made while filing appeals will be adjusted under the settlement mechanism.
Which cases are excluded?
Not every employer will be eligible. The scheme does not apply where damages have already been fully recovered. It also excludes cases involving fraud, misappropriation or deliberate falsification of records, as well as cases where the applicable interest dues have not been fully paid.
How can employers apply?
Applications must be submitted online through the EPFO employer portal and authenticated using a Digital Signature Certificate (DSC) or e-sign. Employers will be required to furnish details of the default period, the damage order, the amount already paid, proof of interest payment and other prescribed information.
Once the application is approved, the employer must make the payment within 15 days. EPFO will thereafter issue a digitally signed settlement certificate.
