EPFO launches six-month 'VISHWAS 2026' scheme to settle employer penalty disputes, promote compliance
New Delhi, July 17
The Employees' Provident Fund Organisation 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."
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.
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.
— ANI
Reader Comments
Good initiative but I'm skeptical about 'voluntary compliance' from employers who have been dodging dues for years. Many workers have lost crores in PF claims due to such delays. At least the scheme covers pending cases and promotes digital filing. Let's see how many actually come forward.
As an employer, I appreciate this! 👏 The reduced rates for short defaults are fair. But why only 6 months? Many small businesses need time to arrange funds. Also, the condition of paying full interest first might be tough for cash-strapped firms. Still, better than endless court cases.
Interesting - similar schemes exist in other countries to clear backlogs. The key is enforcement. India has great schemes like VISHWAS but implementation often falters. Setting up dedicated cells is good, but they need proper staffing and training. Hope the monitoring at zonal level is serious.
VISHWAS 2026 seems promising but I worry about workers whose employers have been delaying PF contributions for years. Will this scheme recover the lost interest for employees? Also, the undertaking to not appeal is problematic if the employer later finds calculation errors. EPFO should clarify appeal rights.
Smart move by EPFO to bundle pending cases under one umbrella. The 0.25% rate for 2-month defaults is more lenient than before. But why does the scheme exclude cases where final orders are already issued? That seems like a missed opportunity for full settlement. Still, good progress overall.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.