VISHWAS 2026 Scheme: Eligibility, Penalty Relief & How to Apply (Employer's Guide)

Updated: 14 July 2026 | Reviewed by: [Kustodian EPF Compliance Team]

Quick Answer

VISHWAS 2026 is a one-time settlement scheme under the EPF Scheme, 2026, letting employers settle pending Section 14B damages disputes at reduced rates. It applies only to defaults on or before 14 June 2024 and runs for 6 months from 29 June 2026, extendable by a further 6. If your establishment has a pending or disputed EPF damages case, check eligibility before the window closes.

What Changed?

Why Was VISHWAS Introduced?

• Reduce long-pending litigation on legacy PF defaults
• Improve recovery of statutory dues without protracted disputes
• Give a clean, time-bound settlement path as the EPF Scheme, 2026, replaces the 1952-era framework
• Cut down repeat filings and appeals clogging EPFO regional offices

Key Notification Details

At a Glance

Legal Basis

VISHWAS 2026 vs AMNESTY 2026

Both were introduced in the same notification and are easy to confuse — they solve different problems.

If your issue is a damages dispute, VISHWAS applies. If it's about trust exemption status, AMNESTY does, not both.

Who Can Benefit

Eligibility at a glance:

Default on/before 14 June 2024?
        │
       Yes
        │
Pending or disputed 14B matter?
        │
       Yes
        │
Fraud, or damages already fully paid?
     │        │
    No       Yes
     │         │
 Eligible   Not eligible

Not sure where your case stands? [Get a free eligibility review from Kustodian →]

Timeline

• 29 June 2026 — EPF Scheme, 2026 notified; VISHWAS 2026 introduced as part of it
• 9 July 2026 — EPFO operational circular issued, detailing the application procedure
• Window opens — effective from notification, runs 6 months
• Last date to apply — end of the 6-month window, unless extended
• Possible extension — a further 6 months, at EPFO's discretion

How the Scheme Works

1. Default occurs → EPFO opens Section 14B proceedings
2. Employer confirms the case falls within VISHWAS's notified scope
3. Damages are recomputed at the concessional rate
4. Employer applies through the EPFO Employer Portal within the window
5. On payment, the case closes — any pending appeal on the same matter must be withdrawn

What Doesn't Change

VISHWAS is a damages-settlement scheme, not a blanket waiver. Three things employers get wrong:

• Interest isn't waived. Section 7Q interest is calculated and paid separately from the settlement, in full.
• Overpayments aren't refunded. If you've already paid more than the recalculated damages, the excess isn't returned — you simply owe nothing further. If you've paid less, you pay the difference.
• Settling requires giving up the appeal. Employers must undertake not to pursue further appeal or litigation on the same matter once it's settled — this isn't a parallel track alongside an ongoing case.

Edge Cases

Common Mistakes

• Confusing damages with interest. Settling under VISHWAS closes the 14B damages case — it does nothing to the Section 7Q interest, which stays payable.
• Assuming every pre-2024 default qualifies. Fraud, misappropriation, and already fully settled cases are excluded regardless of date.
• Expecting a refund on overpayments. The scheme nets off the difference; it doesn't return money already paid.
• Continuing an appeal after applying. Settlement requires the pending appeal on that matter to be withdrawn, not run in parallel.

Worked Example

ABC Manufacturing had PF remittance delays totalling ₹8,00,000 across defaults between 2019 and 2023 — all before the 14 June 2024 cutoff.

Figures are illustrative to show the mechanism. Actual damages depend on the default period and are confirmed via your EPFO order under the scheme's operational guidelines.

What Employers Should Do Now

• Review all pending or disputed EPFO 14B orders and notices
• Confirm the default falls on or before 14 June 2024
• Rule out fraud, misappropriation, or full prior settlement as exclusions
• Calculate the amount payable under the concessional rate
• Confirm the authorised signatory's DSC or e-sign is active
• If under appeal, prepare the withdrawal as part of the settlement
• Apply through the EPFO Employer Portal within the window

Frequently Asked Questions

Does VISHWAS 2026 apply to employees? No. It's an employer-side settlement scheme — employee PF balances, withdrawal eligibility, and pension benefits are unaffected.

Does the scheme waive interest? No. Section 7Q interest remains payable in full — VISHWAS only settles the Section 14B damages portion.

What if I've already paid the damages? If fully paid, the case is closed and not eligible. If you've paid more than the recalculated amount, the excess isn't refunded. If less, you pay only the difference.

Can establishments with pending appeals apply? Yes, but settling under VISHWAS requires withdrawing the pending appeal on that matter — you can't hold both simultaneously.

Where do employers apply? Through the EPFO Employer Portal, using a valid DSC or e-sign, during the notified window.

Official References

• Employees' Provident Fund Scheme, 2026 — Gazette Notification G.S.R. 525(E)/526(E), dated 29 June 2026
• EPFO Circular introducing the VISHWAS 2026 operational framework, dated 9 July 2026
• Ministry of Labour & Employment / EPFO public communications on VISHWAS 2026

Need Help Determining Eligibility?

Eligibility often turns on three facts: when the default occurred, whether damages proceedings are still pending, and whether any damages have already been recovered. Kustodian can review your EPFO orders against these three points and confirm eligibility before you apply.