Blog

SUPREME COURT STRIKES DOWN THREE-MONTH AGE LIMIT ON MATERNITY BENEFITS FOR ADOPTIVE MOTHERS UNDER THE CODE ON SOCIAL SECURITY, 2020

In a recent and significant decision in Hamsaanandini Nanduri v. Union of India, [WRIT PETITION (C) NO. 960 of 2021] the Supreme Court of India has revisited the scope of maternity benefits available to adoptive mothers, bringing renewed attention to the constitutional values of equality, dignity, and child welfare within labour legislation.

The case concerned the validity of provisions under the Maternity Benefit Act, 1961, later incorporated under the Code on Social Security, 2020, which grant maternity leave to adoptive mothers only where the adopted child is below three months of age. The petitioner challenged this limitation, contending that such a restriction creates an arbitrary classification among adoptive mothers and fails to recognize the realities of the adoption process in India.

Significantly, the Supreme Court struck down the provision contained in Section 60(4) of the Code on Social Security, 2020, insofar as it imposes an age limit of three months on the adopted child for adoptive mothers to avail maternity benefits. The Court held that such a restriction is unconstitutional and violative of Article 14 of the Constitution of India and Article 21 of the Constitution of India.

While examining the issue, the Court acknowledged an important principle: motherhood cannot be confined solely to biological childbirth. The Court observed that adoptive mothers also require time to nurture, bond with, and integrate a child into the family environment. Emotional attachment, caregiving responsibilities, and the developmental needs of the child remain central considerations irrespective of biological ties.

EPFO Launches "VISHWAS, 2026": A One-Time Opportunity for Employers to Settle EPF Damages at Reduced Rates

The Employees' Provident Fund Organisation (EPFO), vide Circular No. Compliance/E-1203096/2025 dated 09 July 2026, has operationalized "VISHWAS, 2026", a special dispute resolution scheme notified by the Central Government on 29 June 2026.
The scheme aims to provide employers with a unique opportunity to amicably settle disputes relating to damages levied under Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (or Section 128 of the Code on Social Security, 2020) by offering substantially reduced rates of damages.

What is VISHWAS, 2026?
VISHWAS, 2026 is a one-time settlement scheme designed to reduce prolonged litigation and facilitate faster recovery of EPF dues while providing financial relief to employers.The scheme became effective from 29 June 2026 and will remain open for six months, making it available until 28 December 2026.

Who Can Avail the Scheme?
The scheme covers almost every stage of proceedings relating to damages under Section 14B, including:

• Cases pending before any judicial or appellate authority, where the damages order is under challenge.
• Final orders where the damages remain unpaid or partially paid, including Revenue Recovery Certificate (RRC) cases.
• Cases where a show cause notice has been issued but the final order has not yet been passed.
• Cases where proceedings are yet to be initiated and no notice has been issued.

This broad applicability makes the scheme beneficial for a large number of establishments facing EPF damage proceedings.

Reduced Rate of Damages
One of the most significant benefits of VISHWAS, 2026 is the drastic reduction in damages for defaults that occurred prior to 14 June 2024.

The revised rates are:

These rates are considerably lower than the damages generally imposed under the existing provisions, thereby offering substantial financial relief.

Important Conditions
Employers intending to opt for the scheme should note the following mandatory conditions:

• Entire interest under Section 7Q (or Section 127 of the Code) must be paid in full before submitting an application under the scheme.
• The employer must furnish an undertaking confirming that no further appeal will be filed after settlement under VISHWAS, 2026.
• Once the dispute is settled, it shall attain finality in accordance with the provisions of the scheme.

Treatment of Part Payments
The Circular also clarifies the treatment of cases where damages have already been paid partially.

• If the amount already paid exceeds the revised damages under VISHWAS, no refund or adjustment will be allowed.
• If the amount already paid is less than the revised damages, the employer will be required to pay only the balance amount.

Appeals and Pre-Deposit
The scheme also provides clarity regarding appeals where mandatory pre-deposits have already been made.
Any amount deposited while filing an appeal will be adjusted against the liability computed under VISHWAS, 2026. If additional payment is required, the employer must deposit the balance amount. Excess deposits, however, are not refundable.

Why Employers Should Consider VISHWAS, 2026
For many establishments, EPF damage proceedings remain pending for years before the EPF Appellate Tribunal or various High Courts. During this period, litigation costs continue to increase and uncertainty remains.
The VISHWAS Scheme provides several advantages:

• Significant reduction in damages.
• Faster closure of long-pending litigation.
• Elimination of future legal costs.
• Opportunity to regularize EPF compliance.
• Greater certainty regarding financial liabilities.

For employers who have pending Section 14B proceedings, the scheme presents an excellent opportunity to resolve disputes at a substantially lower financial burden.

Action Points for Employers
Before applying under the scheme, employers should:

• Review all pending Section 14B proceedings.
• Calculate the revised damages under VISHWAS, 2026.
• Ensure complete payment of Section 7Q interest.
• Assess whether pending litigation can be amicably settled.
• Submit the application well before the expiry of the six-month window.

Conclusion
The introduction of VISHWAS, 2026 marks one of the most employer-friendly initiatives by the EPFO in recent years. By substantially reducing damages and encouraging voluntary settlement, the scheme seeks to balance compliance enforcement with ease of doing business.

Employers with pending EPF damage matters should carefully evaluate the financial implications of the scheme and consider availing this limited-time opportunity before the scheme expires.

Click here to read the notification.