Pune: EPFO Launches ‘Vishwas-2026’ Scheme to Help Employers Settle Penal Damages Cases
Pune, 13th July 2026: The Employees’ Provident Fund Organisation (EPFO) has launched ‘Vishwas-2026’, a one-time settlement scheme aimed at providing substantial relief to employers by enabling the transparent, time-bound and amicable resolution of cases related to penal damages.
The scheme, which came into effect on June 29, 2026, will remain open for six months. It covers penal damages levied under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, and Section 128 of the Code on Social Security, 2020.
According to the EPFO, the scheme allows eligible establishments to settle a wide range of pending penal damages cases. These include matters under litigation before courts or tribunals, cases in which orders have been issued but recovery has not yet been made, cases where notices have been issued but final orders are pending, and cases where notices are yet to be issued.
However, the scheme does not apply to cases where penal damages have already been fully recovered, matters involving fraud, misappropriation or deliberate falsification of records, or cases where the entire interest amount due has not been paid.
Under the scheme, employers will benefit from significantly reduced penal damages. Defaults of less than two months will attract damages at 0.25% per month, defaults of two months to less than four months will attract 0.50% per month, while defaults of four months or more will attract 1% per month.
Employers can apply online through the EPFO Employer Portal by selecting the “Vishwas-2026” option. Applications must be accompanied by the relevant order or notice, details of pending litigation, where applicable, payment records and the prescribed undertaking.
After verification, the EPFO will recalculate the penal damages and communicate the revised amount through the Employer Portal. Employers must pay the revised amount within 15 days, although an extension of another 15 days may be granted in exceptional cases. Failure to make the payment within the stipulated period will result in the application being rejected and the employer losing the benefits of the scheme.
Upon successful settlement, the EPFO will issue a Vishwas-2026 Certificate, which will serve as conclusive proof of settlement and may be used to withdraw pending cases before courts or the Central Government Industrial Tribunal (CGIT).
Appealing to employers to take advantage of the initiative, Bijayant Kumar, Regional Provident Fund Commissioner-I, Regional Office Pune (Hinjawadi), said the scheme offers an opportunity to resolve long-pending penal damages cases and judicial disputes through an amicable settlement.
Sachin Borate, Regional Provident Fund Commissioner-II, Regional Office Pune (Hinjawadi), said the scheme not only facilitates dispute resolution but also helps establishments save valuable time, resources and litigation costs.
Sanat Kumar, Regional Provident Fund Commissioner, Regional Office Pune (Akurdi), urged employers to avail themselves of the scheme, saying it provides substantial financial relief while reducing the compliance burden on establishments.
