EPFO launches VISHWAS, 2026

The Employees’ Provident Fund Organisation, vide circular no. Compliance/E-1203096/2025/2823, dated 9^th July 2026, has released detailed information regarding VISHWAS, 2026, a special provision concerning damages, as notified under the Employees’ Provident Funds Scheme, 2026.

The purpose of “VISHWAS” is to facilitate an amicable resolution of disputes concerning damages imposed under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, or Section 128 of the Code on Social Security, 2020, thereby minimising litigation through the implementation of rationalised penal damages.

Duration:

The VISHWAS scheme will be effective from the date of publication of the EPF Scheme, 2026, which is 29^th June 2026, and shall remain in force for a period of six months from 29^th June 2026. The duration may be further extended for a period not exceeding six months by the Central Provident Fund Commissioner for reasons to be recorded in writing and shall be placed before the Central Board for information.

Applicability:

VISHWAS, 2026 will apply to damages resulting from default in contribution payments for the period preceding 14^th June, 2024, and will pertain to the following categories of cases:

• Ongoing cases where an order for damages has been issued and is under dispute before any judicial forum.

• Finalised orders, including Revenue Recovery Cases, where the amount is yet to be recovered from the employer.

• Where the notice for damages has been issued, but the final order is yet to be passed.

• Where the notice for damages is yet to be issued.

The following categories of cases are specifically excluded from this Scheme:

• Establishments where damages have been fully recovered.

• Cases involving fraud, misappropriation, or deliberate falsification of records.

• Cases where the interest under dispute has not been fully remitted by the employer.

Rate of damages under the Scheme:

Period of default	Rate of damages per month
Default up to 2 months	0.25% per month
Default from 2 to less than 4 months	0.50% per month
Default beyond 4 months	1.00% per month

Conditions:
The relevant interest, in accordance with Section 7Q of the EPF Act, 1952, or Section 127 of the Code on Social Security, 2020, for the specified period, must be completely paid prior to the submission of the application to obtain the benefits of VISHWAS, 2026.

The employer is required to provide a formal commitment stating that no additional appeals will be lodged in any judicial or quasi-judicial forum following the resolution and cessation of the dispute under this Scheme.

Conclusion:
This Scheme will provide advantages to both employers and the EPFO members by minimising litigation and legal expenses, ensuring penalties are more predictable, and streamlining compliance processes. Employers will experience simpler dispute resolution and reduced administrative responsibilities, whereas members will gain from quicker recovery of dues, faster reinvestment of funds, and enhanced returns. In summary, it fosters prompt compliance and strengthens trust in the EPF system.