New Delhi: The Employees’ Provident Fund Organisation (EPFO) under the Ministry of Labour & Employment, Government of India, has launched “VISHWAS, 2026”, a one-time dispute resolution scheme aimed at providing an amicable settlement mechanism for disputes related to damages and penalties under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, and the Code on Social Security, 2020.
The scheme has been notified through G.S.R. 525(E) dated June 29, 2026, as part of the EPF Scheme, 2026, and has come into effect from the same date. The initiative will remain operational for six months from the date of notification.
VISHWAS 2026 Aims to Reduce Litigation and Promote Compliance
EPFO introduced the scheme to encourage voluntary compliance among employers, reduce prolonged legal disputes, and provide a faster resolution process for pending damages and penalty-related cases.
The initiative allows eligible employers to settle disputes through a:
- Transparent process
- Fully digital application system
- Time-bound settlement mechanism
The scheme has been designed while ensuring that the interests of employees remain protected.
Read also: PM Narendra Modi Likely to Launch EPFO ATM Withdrawal Facility; PF Access to Get Bank-Like Ease
Four Categories of Cases Covered Under VISHWAS 2026
The one-time settlement scheme covers four major categories of disputes:
- Cases where damages or penalty orders are under challenge before judicial forums.
- Final damages or penalty orders where recovery is pending or partially completed, including Recovery Certificate (RRC) cases.
- Cases where notices have been issued but final orders are yet to be passed.
- Cases where notices for damages or penalty have not yet been issued.
Reduced Damages Rates Offered Under the Scheme
Under VISHWAS 2026, damages or penalties for defaults committed before June 14, 2024, will be recalculated at significantly reduced rates.
The revised concessional rates are:
- 0.25% per month for defaults up to two months
- 0.50% per month for defaults from two months to less than four months
- 1.00% per month for defaults exceeding four months
These reduced rates aim to encourage employers to resolve pending disputes quickly and improve compliance with EPF regulations.
Eligibility Conditions for Employers Under VISHWAS 2026
To benefit from the scheme, employers must fulfil certain conditions:
- The entire applicable interest amount under Section 7Q of the EPF & MP Act, 1952 or Section 127 of the Code on Social Security, 2020 must be fully deposited.
- Employers must submit an undertaking confirming that they will not file any further appeal regarding the dispute settled under the scheme.
The scheme also includes provisions related to adjustment of already paid damages, statutory pre-deposits made for appeals, and fair settlement of pending cases.
Cases Excluded from VISHWAS 2026 Scheme
Certain cases will not be eligible under the scheme, including:
- Establishments where damages or penalties have already been fully recovered.
- Cases involving fraud, misappropriation, or intentional falsification of records.
- Cases where the required statutory interest has not been completely deposited.
Digital Application Process Through EPFO Employer Portal
Employers can apply for settlement under VISHWAS 2026 through the EPFO Employer Portal.
The application process will be completed digitally using:
- Digital Signature Certificate (DSC)
- e-Sign facility
The online system has been developed to enable:
- Easy filing of applications
- Digital verification
- Faster processing
- Issuance of settlement orders within a defined timeline
EPFO Sets Up VISHWAS Cells for Smooth Implementation
To ensure effective implementation of the scheme, EPFO has issued detailed operational guidelines to its Zonal, Regional, and District Offices.
Dedicated VISHWAS Cells will be established at field offices to:
- Assist employers with applications
- Process settlement requests quickly
- Ensure timely disposal of cases
EPFO will also conduct regular monitoring at zonal and head office levels to track progress and ensure proper execution of the scheme.
VISHWAS 2026 Offers Opportunity for Faster Dispute Resolution
The launch of VISHWAS 2026 provides eligible employers an opportunity to settle long-pending damages and penalty disputes, improve compliance, and contribute towards a more efficient and litigation-free social security system.
The initiative is expected to reduce the burden of pending cases while strengthening cooperation between employers and EPFO.
About EPFO
The Employees’ Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Labour & Employment, Government of India. Established to provide social security benefits to employees, EPFO manages provident fund, pension, and insurance schemes for millions of workers across India. It plays a key role in promoting retirement security and financial protection for employees in the organised sector.
Read also: PNB Signs MoU with EPFO to Provide Salary Account Benefits and Banking Services to Employees
