Vishwas 2026 EPF Scheme – Eligibility for Dispute Settlement Explained

The Employees' Provident Fund Organisation (EPFO) has issued a circular dated 9th July 2026 announcing the launch of "VISHWAS, 2026". It is the latest EPFO Scheme in 2026 for the amicable settlement of disputes relating to damages levied under Section 14B of the Employees' Provident Funds Act, 1952, and/or Section 128 of the Code on Social Security, 2020. The Vishwas 2026 EPF circular has been issued to introduce a special dispute-settlement mechanism for cases involving damages levied under the EPF framework.

Background: What Triggered the Latest EPF Scheme

The circular is rooted to notification dated 29th June 2026, by the Central Government which notified VISHWAS, 2026 as part of the EPF Scheme, 2026. It seeks to facilitate amicable resolution of disputes relating to the levy of damages under Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 ("repealed Act") or Section 128 of the Code on Social Security, 2020.

The scheme is effective from 29th June 2026 and will remain in force for six months from the date of its notification.

Vishwas 2026 EPF Scheme Eligibility

The latest EPF scheme circular sets out four categories of cases to which this Vishwas EPFO scheme 2026 applies:

Ongoing Litigation Cases: where an order under Section 14B of the repealed Act, or under Section 128 of the Code, has been issued and is under dispute before any judicial forum by either party.
Finalized 14B Orders including RRC Cases (Unpaid/Partially Paid): where an order has been issued and the amount to be levied is yet to be recovered.
Pre-Adjudication Cases (Notice Issued): where a notice has been issued under Section 14B or Section 128, but the final order is yet to be issued.
Pre-Adjudication Cases (Notice Not Yet Issued): where a notice under Section 14B or Section 128 is yet to be issued.

Rate of Damages Under Vishwas EPFO Scheme

For the period prior to 14 June 2024, the circular fixes the rate of damages under VISHWAS, 2026 as follows, notwithstanding the rate otherwise applicable at the relevant point in time:

Default up to 2 months: 0.25% per month
Default from 2 to less than 4 months: 0.50% per month
Default beyond 4 months: 1.00% per month

Further Conditions for Eligibility

The Vishwas EPFO 2026 scheme applies subject to two further conditions. First, the entire interest payable under Section 7Q of the repealed Act, or Section 127 of the Code on Social Security, 2020, for the period of default corresponding to Section 14B/128 proceedings must be fully remitted before an application under VISHWAS, 2026 is submitted. Second, the employer must submit a formal undertaking that no further appeal will be filed before any judicial or quasi-judicial forum consequent upon settlement and abatement of the dispute under the scheme.

Cases Excluded from Vishwas 2026 Scheme

The circular specifically excludes three categories: establishments where damages have been fully recovered; cases involving fraud, misappropriation, or deliberate falsification of records; and cases where interest under dispute has not been fully remitted.

Regulation of Dues and Pre-Deposits

Where an amount has already been remitted in part under Section 14B of the repealed Act, the circular provides that if the amount remitted exceeds the revised damages computed under VISHWAS, 2026, no refund is admissible, and the excess cannot be adjusted against any other order or notice for the same delay period. Where the amount remitted is less than the revised computed damages, the establishment must remit the differential.

Similarly, for pre-deposits made under Section 7-O of the repealed Act (for appeals under Section 7-I) or Section 23(3) of the Code, the circular states that where the VISHWAS-computed damages exceed the deposited amount, the establishment must pay the balance. Where the deposit exceeds the computed damages, the excess is first adjusted against any other Section 14B order or Section 128 notice for subsequent periods of delay.

Application Process Under the EPFO Scheme 2026

Part-B of the circular lays out operational guidelines issued under Para 11 of VISHWAS, 2026. The employer must file an application online through the employer portal, authenticated by Digital Signature or e-sign. If PAN, email ID, or mobile number has not previously been uploaded, these must be updated. The employer is required to enter or upload details including the period of default, reference order number and date, the amount of damage levied and paid, proof of deposit of interest/damages, and a declaration that interest for the relevant period has been deposited.

After selecting the applicable case category, the system generates a Vishwas Application PDF upon submission. The employer must provide two consents, confirming that payment under the scheme will be made within 15 days of approval by the competent authority, and a declaration undertaking that no further appeal will be filed following abatement of the dispute. The application is then digitally signed and transmitted to the Field Office.

Processing Stages

The circular describes a multi-level review process:

The Dealing Assistant (DA) at the Regional/District Office reviews the application and system-calculated benefit, and may either agree and approve, or disagree and upload a manual calculation file.
The Section Supervisor (SS) reviews the application and recommends approval or rejection to the APFC, or sends it back to the DA for rechecking.
The APFC is the final authority to approve, reject, or send the application back for rechecking. If approved, it proceeds to the employer for final approval; if rejected, the process ends.
The employer then reviews the approved application, and may agree (proceeding to challan generation and payment), disagree (rejecting with no further action), or send it back to the DA.
Once the challan is generated it cannot be cancelled. After successful payment, the application goes to the APFC for certificate generation and e-signing, following which the signed certificate becomes available for download on the employer's login.

Preparatory Activities and Monitoring

Part-C of the circular directs Zonal, Regional, and District Offices to complete preparatory activities within seven days of issuance of the circular, including identifying possible beneficiary establishments, designating a Nodal Officer as the "VISHWAS, 2026 Coordinator," constituting a Vishwas Cell, establishing a dedicated helpdesk, undertaking outreach to eligible establishments, and coordinating with EPFO's panel advocates to create a database of pending 14B cases before CGIT/High Courts/Supreme Court.

The Vishwas 2026 EPF scheme circular further mandates a review mechanism: weekly reviews by Zonal Offices during the first three months, and fortnightly reviews during months four to six. Key Performance Indicators tracked include outreach percentage (20% weightage), applications processed within 10 working days (20%), Vishwas amount communicated within 20 days (25%), certificates issued within 3 working days of payment verification (10%), and litigation cases where withdrawal applications have been filed before Court/CGIT (25%).

The circular states that any ambiguity not covered by the guidelines is to be referred to the Compliance Division, Head Office, and that it supersedes any previous communication on the subject. It has been issued with the approval of the Central Provident Fund Commissioner.