The Employees’ Provident Fund Organisation (EPFO) has urged employers to settle pending provident fund (PF) damage disputes under its one-time VISHWAS 2026 scheme, which offers reduced rates for eligible defaults. The settlement window runs from 29 June to 28 December 2026, giving establishments a limited period to close disputes without prolonged litigation.
The scheme applies to damages arising from defaults before 14 June 2024. These are penalties for delayed remittance of PF contributions and are separate from statutory interest on delayed deposits. Under VISHWAS, damages are recalculated at 0.25% per month for delays of up to two months, 0.50% per month for delays from two to less than four months, and 1% per month for delays exceeding four months.
However, 0.25% is not a flat rate for every employer or delayed payment. The applicable rate depends on the length of the default.
Which EPF damage cases are eligible?
VISHWAS 2026 covers four categories: cases where a damages order is being challenged before a court or tribunal; cases where a final order has been passed but the amount remains unpaid or partly recovered, including recovery certificate cases; cases where a notice has been issued but a final order is pending; and cases where a default is identifiable but a notice has not yet been issued.
The scheme covers disputes under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, and the corresponding Section 128 of the Code on Social Security, 2020.
Interest payment is mandatory
Employers cannot use the scheme to waive interest on delayed PF contributions. Before applying, an establishment must pay the entire interest payable under Section 7Q of the EPF law or Section 127 of the Social Security Code, as applicable. PF contribution dues remain payable.
Applicants must undertake not to pursue further appeals in relation to the dispute being settled. Establishments where damages have already been fully recovered are excluded. The scheme also excludes cases involving fraud, misappropriation or deliberate falsification of records, and cases where statutory interest has not been fully remitted.
How can employers apply?
Applications must be filed online through the EPFO Employer Portal. Employers need to access the VISHWAS 2026 module, select the relevant category, upload documents and authenticate the application using a Digital Signature Certificate or e-Sign. An application ID is generated, and the revised damage amount is communicated electronically.
After receiving the settlement offer, the employer is required to deposit the revised amount within 15 days. A further 15-day extension may be available where required. After full payment, EPFO issues a digitally signed settlement certificate, which can be submitted before the court or tribunal to close pending proceedings.
Employers should check their case status, outstanding interest and eligibility before the deadline. If they miss the scheme window, the original proceedings and recovery action may continue under the applicable law. VISHWAS is a time-bound settlement opportunity, not a waiver of PF liabilities.
