What is the EPFO VISHWAS Scheme 2026?
The EPFO VISHWAS (Vivaad Se Vishwas) Scheme 2026 is a landmark dispute resolution initiative notified by the Ministry of Labour and Employment to settle long-pending penal damages proceedings under Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The scheme provides substantial relief to employers burdened with legacy litigation while ensuring that employee provident fund accounts receive full principal contributions and mandatory statutory interest.
Standard Penal Damages vs VISHWAS 2026 Reduced Rates
Under standard Section 14B provisions, employers delaying PF remittances are subject to steep compounding damages ranging from 5% to 25% per annum. The EPFO VISHWAS scheme replaces these rates with rationalized monthly slabs:
| Period of Delay | Standard Section 14B Damages | VISHWAS 2026 Reduced Rate |
|---|---|---|
| Up to 2 Months | 5% per annum | 0.25% per month (3% p.a.) |
| More than 2 to less than 4 Months | 10% per annum | 0.50% per month (6% p.a.) |
| 4 Months or More | 15% to 25% per annum | 1.00% per month (12% p.a.) |
Mandatory Payment of Section 7Q Statutory Interest
A non-negotiable statutory requirement of the VISHWAS Scheme is that Section 7Q interest (12% per annum simple interest) on delayed remittances cannot be waived, compromised, or reduced. Employers must either have already deposited Section 7Q dues in full or remit them simultaneously with the reduced damages settlement.
Important Scheme Timeline & Application Window
The application portal for the VISHWAS Scheme is active on the EPFO Unified Portal through December 28, 2026. Establishments opting for the scheme must submit an online declaration withdrawing any pending appeals or writs before the Central Government Industrial Tribunal (CGIT) or High Courts.
Frequently Asked Questions (FAQs)
1. Can an establishment claim refund of damages already paid?
No. If damages were already assessed and recovered prior to the announcement of the scheme, the excess cannot be refunded in cash. However, pre-deposits in ongoing litigation can be adjusted against the revised VISHWAS liability.
2. Does VISHWAS waive employee share deductions?
Never. Principal employee provident fund contributions deducted from wages must be deposited in full. The scheme pertains exclusively to penal damages under Section 14B.
Statutory Authority: Section 14B & Section 7Q, Employees' Provident Funds and Miscellaneous Provisions Act, 1952 read with PIB Press Release PRID 2285666. Valid for filings up to December 28, 2026.