EPFO Launches VISHWAS 2026: Settle Pending PF Penalty Cases at Lower Rates – Check Who Benefits From the Scheme

Synopsis: EPFO has launched the new scheme VISHWAS 2026 to resolve the outstanding PF damages disputes with the eligible employers at a concessionary rate. The six-month scheme offers relief from paying penalty costs for late PF contributions, but there will be no relief from the interest liability.

EPF Organisation (EPFO) has launched the “VISHWAS 2026” Scheme which will assist employers in resolving any dispute that may have arisen out of their delayed PF payments. According to this Scheme, eligible employers may be able to pay lesser damages for the delayed compliance, although the statutory interest on the PF arrears is fully applicable.

What Is VISHWAS 2026?

Under EPF law, an employer who delays depositing PF contributions faces two separate liabilities:

• Interest on the delayed amount: Section 7Q of the EPF Act (or Section 127 of the SS Code, 2020)
• Damages/penalty for the delay: Section 14B of the EPF Act (or Section 128 of the SS Code, 2020)

The scheme is available for a six-month period from June 29, 2026

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Which Cases Are Covered?

The scheme has been designed with broad coverage, allowing employers to apply even if the matter has not reached the final adjudication stage. Eligible cases include: 

• Cases pending before courts or tribunals where a damages order has already been passed
• Cases where a final damages order exists but recovery is still pending
• Cases where EPFO has issued a show-cause notice but the final order has not yet been passed
• Cases where delayed PF remittance occurred but no damages notice has been issued

Concessional Damages Rates Under VISHWAS 2026 

For eligible defaults occurring on or before June 14, 2024, damages will be recalculated using concessional monthly rates. These rates are significantly lower than the standard damages provisions under Section 14B, which can increase depending on the delay period. 

Eligibility Conditions Under VISHWAS 2026 

Settlement under the scheme is not automatic. Employers must complete certain requirements before their application can be approved. The employer must: 

• Pay 100% of applicable interest under Section 7Q of the EPF Act or Section 127 of the Social Security Code
• Submit an online application through the EPFO Employer Portal
• Authenticate the application using Digital Signature Certificate (DSC) or e-Sign
• Submit an undertaking confirming that no further appeal or fresh litigation will be initiated after settlement
• Pay the approved settlement amount within 15 days of approval

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Treatment of Amounts Already Paid

EPFO has clarified how amounts already paid by employers will be treated while calculating the final settlement liability under the VISHWAS 2026 Scheme. The treatment will depend on the payment status: 

• If the employer has paid more than the revised concessional damages: The excess amount will not be refunded and cannot be adjusted against the same demand. 
• If the employer has paid less than the revised damages: Only the remaining shortfall amount needs to be paid. 
• Statutory pre-deposit made during an earlier appeal: The amount will be adjusted against the final settlement liability. 

Implementation Support: VISHWAS Cells 

In order to implement the scheme successfully, the EPFO has asked the Regional Offices to set up special cells named VISHWAS Cells as well as help desks for the employers. The Regional Offices would be conducting regular review meetings to check the status of the applications and ensure disposal of the settlement requests. This facility would assist the eligible employers to fill up the applications.

Who Is Excluded From VISHWAS 2026? 

• Cases where damages have already been fully recovered
• Cases involving fraud, embezzlement, or wilful falsification of records
• Cases where the employer has not paid full interest before applying

Employers in these categories must continue through the regular legal/adjudication process.

What This Means for Employees

• Employees’ PF contributions remain fully payable.
• Interest due on employees’ PF accounts is not waived or reduced.
• The scheme only provides relief on damages or penalties imposed on employers for delayed PF contribution payments.
• The damages amount is a liability payable by the employer to EPFO and does not affect employees’ PF balances.

Employees can check their PF contribution status through the EPFO Member Portal using their UAN and can raise complaints through the EPFO grievance portal if contributions appear delayed or missing. 

How to Apply for EPFO VISHWAS 2026 Scheme? 

Eligible employers can apply for the VISHWAS 2026 Scheme through the EPFO Employer Portal by following these steps: 

1. Pay the applicable interest under Section 7Q of the EPF Act or Section 127 of the Social Security Code.
2. Log in to the EPFO Employer Portal and select the VISHWAS 2026 option.
3. Enter the required case details and upload the necessary documents.
4. Submit the mandatory undertaking and authenticate the application using DSC or e-Sign.
5. After verification by the concerned EPFO office, pay the approved concessional damages amount within 15 days.
6. Download the settlement approval certificate from the employer portal.

EPFO VISHWAS 2026 Scheme is a scheme designed to settle the pending damages case of EPF at concessional rate and safeguard the PF benefits for the employees. To avail of the benefit, the eligible employers must apply in the 6 month period.