'VISHWAS': EPFO introduces one-time dispute settlement scheme for employers
What's the story
The Employees' Provident Fund Organisation (EPFO) has launched the VISHWAS, 2026 scheme. It is a one-time dispute settlement initiative aimed at helping employers resolve pending cases related to damages for delayed provident fund (PF) contributions. The scheme, which came into effect on June 29, will be available for six months and offers reduced rates for settling such disputes under Section 14B of the Employees's Provident Funds and Miscellaneous Provisions Act, 1952.
Scheme details
Scheme aims to settle disputes amicably
The VISHWAS, 2026 scheme is designed to facilitate the amicable settlement of disputes related to damages levied on employers for delayed PF remittances.
It provides a limited-time opportunity for eligible establishments to resolve pending cases by paying damages at concessional rates, subject to prescribed conditions.
The scheme covers a wide range of pending cases, including those where damage orders are under challenge before courts or tribunals and finalized orders where damages have not yet been fully recovered.
Rate structure
Damages for defaults before June 14, 2024 will be calculated
Under VISHWAS, 2026 scheme, damages for defaults before June 14, 2024, will be calculated at concessional rates.
Employers will pay damages at 0.25% per month for defaults up to two months, 0.50% per month for defaults between two and four months, and 1% per month for delays beyond four months.
The circular clarifies that if an employer has paid more than revised damages under this scheme, no refund will be given and excess amount cannot be adjusted against same demand.
Application details
Employers must pay interest liability under EPF Act
To avail themselves of the scheme, employers must first pay the entire interest liability under Section 7Q of the EPF Act or corresponding provision under Social Security Code for relevant period of default.
They must also give an undertaking that they will not pursue any further appeal or legal proceedings once dispute is settled under VISHWAS, 2026.
Applications must be submitted online through EPFO employer portal and authenticated using a Digital Signature Certificate (DSC) or e-sign.