EPFO Launches VISHWAS 2026 One-Time Dispute Resolution Scheme

New Delhi, Jul 18 (KNN) The Employees' Provident Fund Organisation (EPFO) has launched 'VISHWAS 2026', a one-time dispute resolution scheme to facilitate the settlement of cases relating to damages and penalties under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and the Code on Social Security, 2020.

The scheme, notified on June 29, 2026, came into effect the same day and will remain open for six months, according to the Ministry of Labour and Employment.

Scheme Aims To Reduce Litigation
VISHWAS 2026 aims to promote voluntary compliance, reduce litigation and enable faster resolution of long-pending disputes related to penalties and damages, while safeguarding employees' interests.

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

Reduced Penalty Rates Offered
Under the scheme, damages for defaults occurring before June 14, 2024 will be recalculated at concessional rates of 0.25 percent per month for defaults up to two months, 0.50 percent per month for delays between two and four months, and 1 percent per month for defaults exceeding four months.

The reduced rates are intended to encourage employers to settle pending disputes within the scheme period.

Eligibility And Application Process
To avail of the scheme, employers must first clear the entire statutory interest payable under the relevant provisions of the EPF Act or the Code on Social Security. Applicants are also required to submit an undertaking confirming that no further appeal will be pursued in relation to the settled dispute.

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

Applications can be submitted online through the EPFO Employer Portal using a Digital Signature Certificate (DSC) or e-Sign.

Dedicated Support Cells To Be Set Up
EPFO has issued operational guidelines to its field offices and will establish dedicated VISHWAS Cells across zonal, regional and district offices to assist employers and ensure time-bound disposal of applications.

The organisation said regular monitoring will be undertaken to facilitate effective implementation and encouraged eligible employers to utilise the one-time opportunity to resolve pending disputes and improve compliance.

(KNN Bureau)