VISHWAS 2026 — what your PF damages would be
A one-time settlement scheme for damages disputes, open from 29 June 2026 to 28 December 2026 and stated to be non-extendable. Defaults before 14 June 2024 are recalculated at the current, much lower rates. The contribution and the interest are not waived — only the damages reduce.
Damages at old rates
₹18,750
25% per annum
Damages at current rates
₹9,000
1.00% per month
Potential reduction
₹9,750
| Contribution arrears (not waived) | ₹1,00,000 |
| Interest under s.127 (12% p.a. simple, not waived) | ₹9,000 |
| Damages at current rates | ₹9,000 |
| Indicative settlement total | ₹1,18,000 |
Read this before relying on the comparison
VISHWAS 2026 covers defaults before 14 June 2024. For defaults between 14 June 2024 and 30 June 2026 the applicable rate is genuinely disputed — a flat 1% per month under G.S.R. 329(E), against the banded table applied retrospectively by EPF Scheme 2026 para 23(2). No instrument reconciling the two has been located, so this tool does not assert a figure for that window.
Damages are capped at 100% of the arrears and require a hearing. The damages comparison above also assumes the historical paragraph 32A rates applied throughout, which should be confirmed against the actual demand.
Why the gap is this large
The historical paragraph 32A table ran from 5% to 25% per annum. EPF Scheme 2026 para 23 replaced it with 0.25% to 1% per month — roughly 3% to 12% a year. On a nine-month default of ₹1,00,000 the difference is about ₹9,750 in damages alone.
The scheme does not reduce the contribution or the interest. It reduces the penalty. If you have an open damages demand, the window is the reason to act now rather than let it run.
An estimate for planning, not a demand calculation. The authority assesses damages on the facts of each case, and the scheme excludes cases involving fraud or misappropriation.
Frequently asked questions
What is VISHWAS 2026 and who is it for?
A one-time settlement scheme for damages disputes, open from 2026-06-29 to 2026-12-28 and stated to be non-extendable. It covers damages raised under the old section 14B and the current section 128, including matters pending before courts or tribunals and cases at show cause notice stage.
Does it waive the contribution or the interest?
No. Neither the contribution nor the section 127 interest is waived — interest must be paid in full before a settlement. Only the damages are reduced, by recalculating pre-14 June 2024 defaults at the current lower rates.
How much lower are the current damages rates?
Materially. The historical paragraph 32A table ran from 5% to 25% per annum. EPF Scheme 2026 para 23 replaced it with 0.25% to 1% per month — roughly 3% to 12% a year. Damages remain capped at 100% of the arrears.
Are any cases excluded?
Yes. Cases involving fraud or misappropriation are outside the scheme.