EPFO launches six-month 'VISHWAS 2026' scheme to settle employer penalty disputes, promote compliance

New Delhi: The Employees' Provident Fund Organisation (EPFO) has launched 'VISHWAS, 2026', a one-time dispute resolution scheme aimed at encouraging employers to settle long-pending damages and penalty-related cases through a simplified digital process while promoting voluntary compliance and reducing litigation.

The Ministry of Labour and Employment said the scheme came into effect on June 29, 2026, and will remain open for six months. It covers disputes relating to the levy of damages under Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and penalties under Section 128 of the Code on Social Security, 2020.

According to the ministry, "VISHWAS, 2026 has been introduced with the objective of promoting voluntary compliance, reducing litigation, and enabling speedy resolution of long-pending disputes relating to penalty/damages while safeguarding the interests of employees."


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The scheme covers four broad categories of cases, including matters pending before judicial forums, cases where recovery is pending or partly completed, cases where notices have been issued but final orders are yet to be passed, and cases where notices have not yet been issued.

To encourage faster resolution, EPFO will recalculate damages and penalties for defaults before June 14, 2024, at reduced rates of 0.25 per cent per month for defaults of up to two months, 0.50 per cent per month for defaults between two and less than four months, and 1 per cent per month for defaults exceeding four months.

The ministry said employers seeking relief under the scheme must first pay the entire interest payable under the relevant provisions before submitting an application. They will also have to provide an undertaking that no further appeal will be pursued in respect of the dispute settled under the scheme.

Applications will be submitted online through the EPFO Employer Portal using a Digital Signature Certificate (DSC) or e-Sign. The ministry said dedicated VISHWAS cells are being set up across EPFO's zonal, regional and district offices to facilitate implementation, while regular monitoring will be carried out at the zonal and head office levels to ensure timely disposal of cases.

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The ministry said the initiative is intended to provide eligible employers with a one-time opportunity to resolve pending disputes, regularise compliance and contribute to a more efficient and litigation-free social security administration.