🔥 Trending EPFO Launches 'Vishwas 2026' Scheme: What You Need to Know

The Employees' Provident Fund Organisation (EPFO) has introduced the VISHWAS 2026 scheme, a one-time dispute settlement initiative designed to help eligible employers resolve disputes related to damages imposed for delayed Provident Fund (PF) contributions at reduced rates ¹⁸. The scheme aims to reduce litigation and promote compliance by offering a concessionary rate for outstanding PF damages disputes ³⁷.

Key Aspects of VISHWAS 2026

The VISHWAS 2026 scheme, officially notified as part of the EPF Scheme, 2026, provides a mechanism for employers to settle long-standing issues concerning penalties for late PF payments ¹².

Purpose and Objectives

• Dispute Resolution: The primary goal is to settle pending disputes under Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and the Code on Social Security, 2020, which deal with damages for delayed contributions ²⁵.
• Reduced Penalties: Employers can benefit from significantly reduced damage rates, offering financial relief from past liabilities ³⁴.
• Litigation Reduction: By providing an avenue for settlement, the scheme seeks to decrease the number of ongoing legal cases related to PF defaults ⁷⁸.
• Promoting Compliance: It encourages employers to regularize their past defaults without facing the full burden of historical penalties ⁷.

Eligibility Criteria

The VISHWAS 2026 scheme is specifically for past defaults and has clear eligibility conditions ⁶:

• Applicable Defaults: The scheme applies only to defaults in PF contributions that occurred on or before June 14, 2024 ²⁶. This date serves as a crucial cut-off for eligibility ⁶.
• Eligible Employers: Employers who have outstanding disputes or have been assessed for damages for delayed PF contributions are eligible to apply ¹⁹.
• Interest Liability: While the scheme offers relief from damage (penalty) costs, it does not provide relief from the interest liability incurred due to late PF contributions. Employers are still required to pay the outstanding interest ³.

Reduced Damage Rates

Under VISHWAS 2026, damages are recalculated at substantially reduced rates ⁴⁹:

• Up to two months default: 0.25% per month.
• From two to less than four months default: 0.50% per month.
• Exceeding four months default: 1.00% per month ⁴.

These rates are considerably lower than the standard penalty rates, making it an attractive option for employers with historical defaults.

Scheme Duration

The scheme is a one-time initiative and is operational for a limited period:

• Initial Period: It runs for six months starting from June 29, 2026 ²⁴.
• Extension: The scheme may be extended for an additional six months, depending on the EPFO's discretion ².

This limited window emphasizes the urgency for eligible employers to utilize the scheme to resolve their outstanding PF-related disputes ¹⁰.