EPFO Launches “VISHWAS, 2026”: A One-Time Opportunity for Employers to Settle EPF Damages at Reduced Rates
Circular on Launch of VISWAS, 2026 for amicable settlements of disputes relating to damages under Code on Social Security, 2020 EPFO Launches “VISHWAS, 2026”: A One-Time Opportunity for Employers to Settle EPF Damages at Reduced Rates The Employees’ Provident Fund Organisation (EPFO), vide Circular No. Compliance/E-1203096/2025 dated 09 July 2026, has operationalized “VISHWAS, 2026”, a special dispute resolution scheme notified by the Central Government on 29 June 2026.The scheme aims to provide employers with a unique opportunity to amicably settle disputes relating to damages levied under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (or Section 128 of the Code on Social Security, 2020) by offering substantially reduced rates of damages. What is VISHWAS, 2026?VISHWAS, 2026 is a one-time settlement scheme designed to reduce prolonged litigation and facilitate faster recovery of EPF dues while providing financial relief to employers.The scheme became effective from 29 June 2026 and will remain open for six months, making it available until 28 December 2026. Who Can Avail the Scheme?The scheme covers almost every stage of proceedings relating to damages under Section 14B, including: This broad applicability makes the scheme beneficial for a large number of establishments facing EPF damage proceedings. Reduced Rate of DamagesOne of the most significant benefits of VISHWAS, 2026 is the drastic reduction in damages for defaults that occurred prior to 14 June 2024. The revised rates are: Period of Default Rate of Damages Up to 2 months 0.25% per month More than 2 months but less than 4 months 0.50% per month More than 4 months 1.00% per month These rates are considerably lower than the damages generally imposed under the existing provisions, thereby offering substantial financial relief. Important ConditionsEmployers intending to opt for the scheme should note the following mandatory conditions: Treatment of Part PaymentsThe Circular also clarifies the treatment of cases where damages have already been paid partially. Appeals and Pre-DepositThe scheme also provides clarity regarding appeals where mandatory pre-deposits have already been made.Any amount deposited while filing an appeal will be adjusted against the liability computed under VISHWAS, 2026. If additional payment is required, the employer must deposit the balance amount. Excess deposits, however, are not refundable. Why Employers Should Consider VISHWAS, 2026For many establishments, EPF damage proceedings remain pending for years before the EPF Appellate Tribunal or various High Courts. During this period, litigation costs continue to increase and uncertainty remains.The VISHWAS Scheme provides several advantages: For employers who have pending Section 14B proceedings, the scheme presents an excellent opportunity to resolve disputes at a substantially lower financial burden. Action Points for EmployersBefore applying under the scheme, employers should: ConclusionThe introduction of VISHWAS, 2026 marks one of the most employer-friendly initiatives by the EPFO in recent years. By substantially reducing damages and encouraging voluntary settlement, the scheme seeks to balance compliance enforcement with ease of doing business. Employers with pending EPF damage matters should carefully evaluate the financial implications of the scheme and consider availing this limited-time opportunity before the scheme expires. Click here to read the notification.
