EPFO launches VISHWAS, 2026: One-time scheme to settle PF damages and penalty disputes

The Employees' Provident Fund Organisation (EPFO) has launched VISHWAS, 2026, a one-time dispute resolution scheme that aims to help employers settle long-pending disputes relating to damages and penalties under provident fund laws at concessional rates.

Launched by the Ministry of Labour and Employment, the scheme came into effect on June 29, 2026, and will remain open for six months. It provides employers with a transparent, fully digital and time-bound mechanism to resolve eligible cases under Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and Section 128 of the Code on Social Security, 2020.

Which cases are covered?

The scheme has a wide ambit and covers several categories of pending disputes. These include cases where orders imposing damages or penalties are under challenge before judicial forums, final orders where recovery is pending or has only been partly completed, including Recovery Certificate (RRC) cases, and matters where notices have already been issued but final orders are yet to be passed.

It also extends to cases where notices for levy of damages or penalties have not yet been issued, allowing employers to resolve disputes before they progress further.

Concessional rates for old defaults

A key feature of VISHWAS, 2026, is the reduction in damages or penalties for eligible defaults. For payment defaults that occurred before June 14, 2024, damages or penalties will be recalculated at significantly lower rates.

Under the scheme, defaults of up to two months will attract damages of 0.25% per month, defaults of more than two months but less than four months will be charged 0.50% per month, while defaults exceeding four months will attract 1% per month.

The government said these reduced rates are intended to encourage employers to settle disputes quickly, reduce litigation and improve compliance with provident fund regulations.

Conditions to avail the scheme

To avail the benefits of VISHWAS, 2026, employers must first ensure that the entire interest payable under the applicable EPF schemes has been fully remitted before submitting an application.

Applicants will also have to furnish an undertaking stating that they will not pursue any further appeal or legal proceedings relating to the dispute once it is settled under the scheme.

The Ministry of Labour and Employment expects the initiative to reduce the burden of pending litigation while enabling faster recovery of provident fund dues. By offering lower damages and a simplified online settlement process, the scheme seeks to provide employers with a final opportunity to resolve legacy disputes and improve overall compliance under India's social security framework.