EPFO Launches VISHWAS 2026 Dispute Resolution Scheme
The Employees' Provident Fund Organisation (EPFO), under the Ministry of Labour & Employment, has launched "VISHWAS, 2026" as a one-time dispute resolution initiative for amicable settlement of disputes relating to levy of damages/penalty under Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and Section 128 of the Code on Social Security, 2020. The scheme was notified vide G.S.R. 525(E) dated 29 June 2026 as part of the EPF Scheme, 2026 and came into force effective from 29 June 2026, remaining operational for a period of six months from the date of notification.
Scheme Objectives and Coverage
VISHWAS, 2026 aims to promote voluntary compliance, reduce litigation, and enable speedy resolution of long-pending penalty/damages disputes while safeguarding employee interests. The scheme covers four specific categories of cases: cases where penalty/damages orders are under challenge before judicial forums; final damages/penalty orders where recovery is pending or only partly made, including Recovery Certificate cases; cases where notices have been issued but final orders are yet to be passed; and cases where notices for penalty/damages are yet to be issued.
Concessional Penalty Rates and Eligibility Criteria
Under the scheme, damages/penalty for defaults pertaining to the period prior to 14 June 2024 shall be recalculated at substantially reduced rates: 0.25% per month for defaults up to two months, 0.50% per month for defaults from two to less than four months, and 1.00% per month for defaults exceeding four months. To avail benefits, employers must ensure entire interest payable under Section 7Q of the EPF & MP Act, 1952 or Section 127 of the Code on Social Security, 2020 has been fully remitted before application submission. Applicants must also furnish an undertaking that no further appeal shall be pursued regarding the dispute settled under the scheme.
Exclusions and Implementation Mechanism
The scheme excludes establishments where penalty/damages have already been fully recovered, cases involving fraud, misappropriation or deliberate falsification of records, and cases where applicable statutory interest has not been fully deposited. Applications must be submitted online through the EPFO Employer Portal using Digital Signature Certificate (DSC) or e-Sign, with the process designed for ease of filing, online verification, digital processing and issuance of settlement orders within a defined timeframe. EPFO has established dedicated VISHWAS Cells across field offices and issued detailed operational guidelines to all Zonal, Regional and District Offices for smooth implementation, with regular monitoring at Zonal and Head Office levels to ensure effective execution.