The Employees' Provident Fund Organisation has opened a six-month settlement window for employers stuck in long-running PF penalty disputes. Called VISHWAS, 2026, the scheme runs from June 29, 2026, to late December 2026, and it lets eligible employers close out old damages cases at sharply reduced rates

Key Takeaways

• VISHWAS, 2026 opened on June 29, 2026, and stays open for six months, closing around December 29, 2026.

• It covers damages under Section 14B of the EPF Act, 1952, for defaults that occurred before June 14, 2024.

• Employers must clear the full interest due under Section 7Q before applying.

• Fraud, misappropriation, and record-falsification cases are excluded.

• Applications go through the EPFO Employer Portal, authenticated with a Digital Signature Certificate or e-sign (NewsX, 2026).

What Is the VISHWAS 2026 Scheme?

VISHWAS, 2026 is a one-time settlement mechanism that lets employers resolve pending PF damages disputes without dragging them through further litigation. EPFO operationalised the scheme through a circular dated July 9, 2026, under the Employees' Provident Funds Scheme, 2026, which itself sits within the Code on Social Security, 2020.

The scheme addresses disputes over "damages," the penalty EPFO levies under Section 14B of the EPF and Miscellaneous Provisions Act, 1952, or the equivalent Section 128 of the Code on Social Security, 2020, when an employer delays depositing PF contributions. It sits alongside two other 2026 initiatives, an Employees' Enrolment Campaign to bring unregistered workers into PF coverage, and AMNESTY, 2026, a separate regularisation route for exempted establishments and PF trusts.

Which PF Damages Cases Qualify for Settlement?

Four categories of pending damages cases can be settled under VISHWAS, 2026, and all of them must trace back to a default that occurred before June 14, 2024. Coverage extends to cases already in litigation and to cases where EPFO has not yet even issued a notice.

The four eligible categories are cases still contested before a court or tribunal, finalised Section 14B orders (including Recovery Certificate cases) where the amount remains unpaid or only partly paid, cases where a show-cause notice has gone out but no final order exists yet, and cases where delayed remittance has occurred but no notice has been issued at all. This breadth means an employer does not need a court order in hand to apply. Even a default that has not yet drawn EPFO's attention can be brought into the scheme voluntarily.

Which Cases Are Excluded from VISHWAS 2026?

EPFO has drawn a firm line around fraud. Cases involving misappropriation, deliberate falsification of records, or established fraud cannot be settled under this scheme, regardless of how long they have been pending.

Three other categories fall outside the scheme's scope. Damages already fully recovered cannot be reopened for a refund. Cases where the employer has not yet paid the full interest amount under Section 7Q are not eligible until that interest is cleared. And establishments that have already settled their dues in full have nothing left to apply for. The exclusions effectively reward employers who kept partial compliance, since only genuine, unresolved defaults get the discount, while confirmed bad-faith conduct stays under the standard penalty regime.

What Are the Revised Damage Rates Under VISHWAS 2026?

The rate cut is tiered by how long the default lasted, and it applies only to defaults before June 14, 2024. Short defaults get the steepest discount, while longer ones still see meaningful relief compared to the standard rate structure.

Under the revised schedule, defaults running less than two months attract damages of 0.25 percent per month, defaults of two to under four months attract 0.50 percent per month, and defaults of four months or more attract 1 percent per month. If an employer has already paid more than this revised amount, EPFO will not refund the difference or adjust it against the same demand. If less has been paid, only the shortfall becomes due.

How Can an Employer Apply for VISHWAS 2026?

Applications are entirely online, filed through the EPFO Employer Portal rather than through any offline or paper route. Before applying, an employer must have already cleared 100 percent of the interest due under Section 7Q, since the scheme only discounts damages, not interest.

The process runs in a few steps. The employer logs into the Employer Portal, selects the VISHWAS, 2026 option, and submits details of the relevant damages order or notice along with proof of interest payment. The application is authenticated with a Digital Signature Certificate or e-sign, and once EPFO verifies it, the revised damages figure is communicated back through the portal. Employers who have handled EPFO portal filings before will recognise this format. It mirrors other EPFO digital workflows, so the documentation discipline that already works for routine PF compliance carries over here.

A settlement under VISHWAS, 2026 comes with one binding condition beyond the paperwork. The employer must give an undertaking not to pursue any further appeal or fresh litigation on that dispute once it is settled, and EPFO will take steps to close out or withdraw the matching pending case.

Does VISHWAS 2026 Change What Employees Receive?

No. VISHWAS, 2026 only touches the penalty component EPFO charges the employer for delayed deposits. It does not reduce, waive, or delay the interest and principal that belong in an employee's PF account. Roughly two-thirds of the coverage in early reporting on this scheme has focused on employer relief, with comparatively little attention paid to confirming that member balances stay untouched, a gap worth closing for anyone tracking their own PF passbook.

Since Section 7Q interest must be paid in full before an employer can even apply, member-facing dues are not part of the discount. Anyone who wants to confirm their own contributions have been credited correctly can check the EPF passbook through the member portal using their UAN.

Frequently Asked Questions

When does the VISHWAS 2026 window close? 

The scheme opened on June 29, 2026, and runs for six months, so the closing date works out to roughly December 29, 2026

Can an employer settle a case if EPFO has not issued a notice yet? 

Yes. Defaults where delayed remittance occurred but no notice has been issued are still eligible, provided the default happened before June 14, 2024

Does VISHWAS 2026 waive interest on delayed PF deposits? 

No. Interest under Section 7Q must be paid in full before an application is even accepted. Only the damages penalty gets the concessional rate.

What happens after a case is settled under the scheme?

The employer must withdraw or discontinue any related appeal and cannot reopen the same dispute later, and EPFO proceeds to close the matching case on its end.

Key Takeaways for Employers Tracking Compliance

VISHWAS, 2026 gives employers a defined, time-bound route to clear old PF damages disputes at rates well below the standard penalty structure, but only for pre-June 2024 defaults and only once interest dues are fully settled. Fraud cases stay outside the scheme entirely, and the six-month clock means employers weighing whether to apply do not have unlimited time to decide.

For anyone tracking how such compliance developments intersect with retirement savings, this is one more reminder that EPF administration is evolving alongside the broader Code on Social Security rollout. Businesses working through eligibility for VISHWAS, 2026 would do well to consult their payroll or compliance team before applying.

Vijay InvestEdge Pvt. Ltd. is an AMFI-registered Mutual Fund Distributor (ARN-1777), based in Pune, Maharashtra, and operating since 1994. This article is intended for general information on regulatory developments only.