EPFO launches VISHWAS 2026 to settle employer penalty disputes

Employers wishing to participate must first clear the full statutory interest payable under the applicable provisions of the EPF and Miscellaneous Provisions Act, 1952, or the Code on Social Security, 2020.

The Employees' Provident Fund Organisation (EPFO) has introduced VISHWAS, 2026, a one-time dispute resolution scheme that allows employers to settle pending cases related to damages and penalties under provident fund laws through a simplified digital process. The initiative, launched by the Ministry of Labour & Employment, is expected to reduce long-running litigation while encouraging better compliance with social security regulations.

The scheme came into effect on 29 June 2026 after being notified as part of the EPF Scheme, 2026, and will remain open for six months. It has been designed to provide a structured and transparent mechanism for resolving disputes without prolonged legal proceedings, while ensuring that employees' interests remain fully protected.

Four categories of cases covered

VISHWAS, 2026 covers a wide range of pending disputes involving damages and penalties. Eligible cases include those currently under challenge before courts or tribunals, matters where final penalty or damages orders have been issued but recovery is still pending or only partly completed, cases where notices have been served but final orders are yet to be passed, and instances where notices have not yet been issued.

To encourage faster settlements, the scheme offers significantly reduced rates for recalculating damages or penalties on defaults that occurred before 14 June 2024. Employers will pay 0.25 per cent per month for delays of up to two months, 0.50 per cent per month for delays between two and four months, and 1 per cent per month for defaults extending beyond four months.

Digital process with clear eligibility conditions

Employers wishing to participate must first clear the full statutory interest payable under the applicable provisions of the EPF and Miscellaneous Provisions Act, 1952, or the Code on Social Security, 2020. Applicants are also required to submit an undertaking confirming that they will not pursue any further legal appeal once the dispute is settled under the scheme.

The initiative excludes establishments where damages or penalties have already been fully recovered, cases involving fraud, misappropriation or deliberate falsification of records, and matters where statutory interest has not been fully deposited.

Applications will be accepted online through the EPFO Employer Portal using a Digital Signature Certificate (DSC) or e-Sign. The entirely digital system has been developed to make filing, verification, processing and issuance of settlement orders quicker and more convenient for employers.

Dedicated support to ensure timely implementation

EPFO has issued operational guidelines to its Zonal, Regional and District offices to ensure smooth implementation across the country. Dedicated VISHWAS Cells are being established in field offices to assist employers, process applications efficiently and ensure that cases are resolved within the prescribed timelines. Progress under the scheme will also be monitored regularly by Zonal Offices and the EPFO headquarters.

The organisation has urged all eligible employers to take advantage of this limited-time opportunity to resolve pending disputes, strengthen compliance with provident fund regulations and contribute to a more efficient and litigation-free social security system.