Settle your EPF damages disputes under
VISHWAS 2026.

The VISHWAS 2026 Scheme was notified on 29 June 2026 and provides a six-month settlement window.

The current window closes on 29 December 2026.

The Scheme covers eligible defaults occurring before 14 June 2024, subject to the applicable conditions and exclusions.

An establishment may be eligible if it has a qualifying Section 14B or Section 128 damages matter falling within one of the categories covered by the Scheme.

Eligibility depends on the status and facts of the individual matter.

Yes. Certain damages orders that are under challenge before a judicial forum may be eligible for settlement under the Scheme.

The employer must comply with the Scheme’s conditions, including the undertaking relating to further proceedings.

Such matters may be covered, including cases where recovery is pending or only partly completed, subject to the Scheme’s conditions.

Such cases may also fall within the eligible category, provided the underlying default meets the Scheme’s requirements.

The Scheme also provides for cases where an eligible default exists, but a notice has not yet been issued.

This is subject to the applicable conditions and records supporting the default.

The Scheme excludes, among others:

• Cases where damages have already been fully recovered
• Cases involving fraud, misappropriation or deliberate falsification of records
• Cases where the corresponding statutory interest has not been fully remitted

No. VISHWAS 2026 relates to settlement of applicable damages/penalty. It does not waive the underlying PF contribution.

No. Section 7Q interest remains payable in full for the applicable period of delay.

The interest must be remitted before enrolling under the Scheme.

The revised rates apply to EPF, EPS and EDLI contributions as well as applicable administrative charges.

The potential saving depends on the original damages, period of default and the amount already paid.

An exposure-level calculation can be undertaken to compare the existing damages liability with the amount under VISHWAS rates.

Yes. The calculation requires details such as the relevant PF defaults, period of delay, damages assessed and payments already made.

A matter-wise exposure review can help quantify the potential difference.

If the amount already paid is less than the revised VISHWAS liability, the balance amount will need to be paid.

If the amount already paid is more than the revised VISHWAS liability, the excess amount is not refunded or adjusted under the treatment shown in the Scheme.

Section 7-O pre-deposits are treated separately from ordinary part-payments.

Depending on the revised VISHWAS liability, the pre-deposit may either need to be topped up or the excess may be adjustable against eligible Section 14B liabilities, as applicable.

No, it is not mandatory to withdraw the litigations to participate in the Vishwas scheme. However, settlement requires the employer to undertake not to file or pursue further proceedings relating to the settled dispute and to take the applicable steps for withdrawal of pending proceedings.

The Scheme requires a binding undertaking not to pursue further appeal or proceedings after settlement.

Therefore, the decision to settle should be evaluated based on the specific facts and status of the matter.

The process broadly involves:

1. Checking eligibility
2. Clearing applicable Section 7Q interest
3. Filing the application through the EPFO Employer Portal
4. Accepting the revised damages and completing payment
5. Completing applicable withdrawal/closure formalities

The application process requires filing through the EPFO Employer Portal using a valid Digital Signature Certificate (DSC).

Employers should first identify their open Section 14B/128 matters, including notices, orders and recovery certificates, and review:

• Period of default
• Damages assessed
• Interest liability
• Amount already paid
• Litigation/recovery status
• Applicable PF codes and establishments

Once the application is processed and the revised damages are communicated, the employer needs to accept the revised amount and complete the required payment and other formalities within the applicable timeline.

There is a 15-day period from intimation to accept the revised damages, make the required payment and complete the applicable settlement formalities.

Once the applicable payment and formalities are completed, the matter can proceed towards closure, including withdrawal of pending proceedings wherever applicable.