EPFO news: Opportunity to settle EPF damage cases at reduced rates with VISHWAS 2026 – check eligibility

The Employees’ Provident Fund Organisation (EPFO) is offering eligible employers a clear window to close long-pending EPF damage cases at sharply reduced rates through its VISHWAS 2026 scheme. The official EPFO account highlighted the opportunity, noting that establishments can settle these cases between 29 June and 28 December 2026.

What is the VISHWAS 2026 scheme?

VISHWAS 2026 is a one-time settlement scheme that lets employers resolve disputes over damages levied for delayed Provident Fund contributions. It covers damages under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, and the corresponding provision under the Code on Social Security, 2020. The scheme applies only to defaults that occurred before 14 June 2024. Under ordinary rules, such penalties can reach as high as 37% a year. The scheme lowers this burden substantially while requiring full payment of the underlying interest.

Reduced damage rates under the scheme

The concessional rates depend on the length of the delay as follows:

Less than 2 months: 0.25% per month

2 to less than 4 months: 0.50% per month

4 months or more: 1% per month

These rates replace the much higher standard damages. Employers must first clear the entire interest due before the reduced damages can be applied. The original contribution amount itself is not waived.

Who is eligible to apply?

According to the official details shared by EPFO, eligible cases include:

Cases where orders for damages under Section 14B have been challenged before any judicial forum.

Cases where orders under Section 14B have been issued but recovery is pending or only partly made.

Cases where notices have been issued under Section 14B or Section 128 of the Code but the final decision is still pending.

Cases where notices are yet to be issued, provided the delay is identifiable in EPFO records.

Several High Courts have also directed or encouraged employers to use the scheme to close pending litigation.

How to settle the cases

The process is online. Employers log in to the EPFO Employer Portal, access the VISHWAS 2026 module, select the applicable category, upload the required documents, and complete digital authentication. The system calculates the revised amount.

Notably, payment must generally be made within 15 days, with a possible automatic extension of another 15 days. Once payment is confirmed, EPFO issues a digitally signed settlement certificate that can be used to close related court or tribunal proceedings.

Important conditions and exclusions

The scheme does not cover cases where damages have already been fully recovered, cases involving fraud, misappropriation or deliberate falsification of records, or situations where the interest has not been fully paid. After settlement, the employer is expected to give an undertaking that no further appeal will be filed on the matter. The closing date of 28 December 2026 will not be extended.

Employers facing pending or potential EPF damage demands related to pre-14 June 2024 defaults should check their category against the official criteria and act before the window closes.