EPFO Introduces VISHWAS 2026 for Settlement of Pending Damages and Penalty Cases

The Employees' Provident Fund Organisation (EPFO) has notified VISHWAS 2026, a one-time scheme for resolving pending disputes related to provident fund damages and penalties, as per news reports.  

According to the Ministry of Labour and Employment, the scheme took effect on June 29, 2026, and will remain open for six months.  

It covers cases arising under Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and Section 128 of the Code on Social Security, 2020. 

Types of Cases Covered 

The scheme is available for four categories of pending matters. These include cases under challenge before courts or tribunals, cases where recovery proceedings are pending or only partly completed, matters where notices have been issued but final orders are yet to be passed, and cases where notices have not yet been issued.  

The ministry said the scheme is intended to address pending disputes relating to damages and penalties through a defined settlement process. 

Revised Rates for Damages 

For eligible defaults made before June 14, 2024, EPFO will recalculate damages at revised rates. Defaults of up to two months will attract damages of 0.25% per month, defaults between two and less than four months will be charged 0.50% per month, and defaults of more than four months will attract 1% per month.  

The revised rates are applicable only to cases that qualify under the scheme.The scheme does not apply where damages or penalties have already been recovered in full.  

It also excludes cases involving fraud, misappropriation, deliberate falsification of records, or cases where the applicable statutory interest has not been fully deposited. 

Filing and Processing of Applications 

Applications must be submitted online through the EPFO Employer Portal using a Digital Signature Certificate (DSC)or e-Sign. Before applying, employers are required to deposit the full statutory interest payable under the relevant provisions.  

They must also provide an undertaking confirming that no further appeal will be pursued after the dispute is settled. 

Read More: EPFO Introduces 3-Day PF Claim Settlement Rule; Auto-Settlement Limit at ₹5 Lakh! 

Conclusion 

EPFO has issued operational guidelines for implementing VISHWAS 2026, with applications to be processed digitally through dedicated VISHWAS Cells across its offices. 

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