If your employer has a pending Provident Fund (PF) damages dispute with the Employees’ Provident Fund Organisation (EPFO), there is now a limited window to settle it at a fraction of the usual cost. The Vishwas 2026 EPF scheme lets eligible employers close out old damages cases by paying reduced, graded rates instead of fighting them out in court or before a tribunal for years.
Here is a plain-language breakdown of what Vishwas 2026 is, who qualifies, what it costs, and how to apply.
What Is the Vishwas 2026 EPF Scheme?
Vishwas 2026 is a one-time, six-month settlement window that lets employers resolve pending disputes over “damages,” the penalty EPFO levies under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, or the corresponding Section 128 of the Code on Social Security, 2020, for delayed PF contribution payments.
The scheme was notified by the Ministry of Labour and Employment vide notification G.S.R. 525(E) dated June 29, 2026, as part of the newly notified Employees’ Provident Funds Scheme, 2026 (EPF Scheme, 2026), which itself replaces the EPF Scheme, 1952. Vishwas 2026 sits under the Special Provisions in Paragraph 60 of the new EPF Scheme, alongside two sister initiatives launched the same day: the Employees’ Enrolment Campaign, 2026 (to bring unenrolled workers into the PF net) and Amnesty, 2026 (a regularisation route for exempted establishments and PF trusts). EPFO operationalised Vishwas 2026 through an implementation circular on July 9, 2026.
The name is telling: Vishwas is Hindi for “trust,” and the scheme’s stated goal is to rebuild trust between employers and EPFO by offering a transparent, time-bound way to close out old damages disputes instead of letting them drag through litigation for years.
It is worth being clear about what Vishwas 2026 does not do. It offers no waiver of the principal PF contribution or the interest due on delayed payments. It only discounts the damages or penalty component and only for defaults that occurred before June 14, 2024.
Who Is Eligible for Vishwas 2026?
Vishwas 2026 is meant for employers and establishments covered under the EPF law, not individual PF members. An establishment can apply if it has a pending damages matter under Section 14B or Section 128 relating to a default that occurred before June 14, 2024, and the case falls into one of these four categories:
- Cases under litigation: A damages order has already been passed and is currently being challenged before a court, tribunal, or the Central Government Industrial Tribunal (CGIT).
- Finalised orders with unpaid or partially paid damages: A damages order exists, but the amount has not been fully recovered.
- Pre-adjudication notice cases: EPFO has issued a show-cause notice for damages, but no final order has been passed yet.
- Uninitiated pre-adjudication cases: A default exists, but EPFO has not yet issued any notice or started proceedings.
Mandatory conditions to qualify
Meeting one of the four categories above is not enough on its own. An employer must also:
- Pay all outstanding interest in full. The interest due under Section 7Q of the EPF Act or Section 127 of the Code on Social Security must be cleared before applying. Vishwas 2026 does not touch this liability at all.
- Submit a formal undertaking. The employer must undertake, in the prescribed format, not to pursue or institute any further appeal or legal proceeding relating to the settled dispute once Vishwas 2026 is availed.
- Complete the process within the window. Applications must be filed online within the scheme’s active period (more on this below).
Who is excluded
EPFO has carved out three situations that cannot use Vishwas 2026:
- Establishments where the damages amount has already been fully recovered.
- Cases involving fraud, misappropriation, or deliberate falsification of records.
- Cases where the full interest amount has not been paid before applying.
Employers in these categories must continue through the regular legal process; Vishwas 2026 offers them no relief.
How Long Is the Vishwas 2026 Window Open?
The scheme took effect on June 29, 2026, and runs for six months from that date, putting the base deadline at around December 29, 2026. Under the terms of the notification, the government retains the discretion to extend the window by a further period of up to six months if needed, though no extension has been announced as of this writing. Employers with eligible cases should not wait for an extension and should plan to apply well within the original six-month period.
Vishwas 2026 Damage Rates: How Much Does an Employer Pay?
For eligible defaults that occurred before June 14, 2024, EPFO recalculates damages at flat, concessional, month-wise rates instead of the standard statutory slabs. These replace all regular damages otherwise payable under Section 14B or Section 128 for the qualifying period.
| Default period | Concessional damages rate |
| Up to 2 months | 0.25% per month |
| More than 2 months, up to 4 months | 0.50% per month |
| More than 4 months | 1.00% per month |
Two adjustment rules matter here:
- If the employer has already paid more than the recalculated amount: No refund is issued, and the excess cannot be adjusted against any other demand.
- If the employer has already paid less than the recalculated amount: Only the shortfall needs to be paid. Any statutory pre-deposit made while filing an earlier appeal is also adjusted against the final settlement amount.
How to Apply for Vishwas 2026
Employers apply entirely online through the EPFO Employer Portal, authenticating the application with a Digital Signature Certificate (DSC) or e-sign. After EPFO’s regional office verifies the case and confirms the recalculated damages amount, the employer has 15 days to accept and pay. A digitally signed Vishwas 2026 Certificate is then issued as proof of settlement, which can be used to withdraw related court or tribunal proceedings. Every regional and zonal EPFO office has also set up a dedicated Vishwas Cell and help desk to guide employers through the process.
Does Vishwas 2026 Affect Employees?
No. Vishwas 2026 is an employer-facing settlement scheme, and EPFO has been explicit that it does not dilute any statutory protection for employees. The principal PF contribution and the full interest on delayed payments remain payable in every case; only the damages component is discounted, and only for employers who qualify. If anything, the scheme should indirectly benefit members by encouraging faster settlement of long-pending disputes, which can speed up the crediting of arrears to employee PF accounts. As always, members can verify their own contribution history anytime by checking their EPF passbook using their Universal Account Number (UAN) on the EPFO member portal.
Key Takeaways
- Vishwas 2026 is a six-month, one-time settlement scheme for employer disputes over PF damages under Section 14B of the EPF Act or Section 128 of the Code on Social Security.
- It runs from June 29, 2026, and covers defaults that occurred before June 14, 2024.
- Eligible employers get flat, discounted damages rates of 0.25% to 1.00% per month, depending on the default period.
- Full interest payment and a no-further-appeal undertaking are mandatory conditions; fraud and falsification cases are excluded.
- Employers apply online via the EPFO Employer Portal; once settled, EPFO issues a certificate that can be used to close out related court or tribunal proceedings.
- Employee PF contributions and interest are unaffected; only the employer’s damages liability is discounted.
FAQs
Is Vishwas 2026 open to individual PF members or only to employers?
Only employers and establishments with pending damages disputes can apply. Individual members do not need to do anything under this scheme.
Can an employer apply under Vishwas 2026 if the case is still pending before EPFO and no order has been passed?
Yes. The scheme covers cases where a notice has been issued but no final order has come through, as well as cases where proceedings have not yet started.
What happens if an employer misses the six-month window?
The dispute reverts to the regular Section 14B or Section 128 process, including the standard, higher damages rates and the usual appeal route, unless the government notifies of an extension.
Does Vishwas 2026 waive interest on delayed PF payments?
No. Full interest under Section 7Q of the EPF Act or Section 127 of the Code on Social Security must be paid before an employer can even apply. Only the damages, not the interest, are discounted.
Where can an employer check the status of a Vishwas 2026 application?
Log in to the EPFO Employer Portal, where the application status and the recalculated damages amount will be visible once EPFO completes its verification.
