EPFO VISHWAS 2026: How Employers Can Settle Long-Pending EPF Damages Disputes

The Employees’ Provident Fund Organisation (“EPFO”) has issued detailed operational guidelines to its Zonal, Regional and District Offices for implementation of the VISHWAS, 2026 scheme, a onetime settlement scheme for pending disputes relating to damages levied under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 or the corresponding provision of the Code on Social Security, 2020. The scheme itself was notified vide G.S.R. 525(E) dated June 29, 2026, and became operational from that date, with the present operational guidelines issued in the first week of September 2026 to standardise implementation across field offices.

Under the scheme, damages for defaults relating to periods prior to June 14, 2024, are recalculated at substantially reduced rates of 0.25 per cent per month for defaults of up to 2 months, 0.50 per cent per month for defaults exceeding 2 months, and one per cent per month for defaults exceeding four months, in place of the higher rates otherwise prescribed. The scheme requires an employer to first clear the full interest due under Section 7Q of the 1952 Act or the corresponding provision of the Code on Social Security, 2020, before the concessional damages rate can be availed, and does not waive the underlying contribution or interest component. Applications are made electronically through the EPFO employer portal using a digital signature certificate or e-sign, and the scheme covers cases pending before a court or tribunal, cases where a penalty order has been passed but not recovered, and cases at the show-cause notice stage. The scheme remains open for six months from notification, presently understood to close on December 28, 2026, and EPFO has indicated that this window will not be extended.

Establishments with pending or contemplated provident fund damages proceedings should evaluate, on priority, whether their case falls within the scope of the VISHWAS, 2026 scheme, and should factor the requirement to first discharge outstanding interest into their settlement planning. Given the fixed and non-extendable window, employers should engage with the relevant EPFO field office at an early stage to confirm eligibility and the applicable concessional rate for their specific default period.

Last Updated on 21 September, 2026