**Executive Summary**
The Employees’ Provident Fund Organisation (EPFO) has launched "VISHWAS, 2026," a one-time dispute resolution initiative to facilitate the amicable settlement of disputes regarding damages and penalties. Effective from 29 June 2026, the scheme will remain operational for six months to promote voluntary compliance and reduce litigation. Employers can settle eligible cases through a digital process, provided they remit all outstanding statutory interest and waive future appeal rights.
**Key Points / Main Content**
**Scope and Eligibility**
* The scheme covers disputes relating to the levy of damages or penalties under Section 14B of the EPF & MP Act, 1952, and Section 128 of the Code on Social Security, 2020.
* Eligible cases include those under judicial challenge, final orders where recovery is pending (including Recovery Certificate cases), and instances where notices have been issued or are yet to be issued.
* Exclusions apply to cases involving fraud, misappropriation, deliberate falsification of records, or where penalties have already been fully recovered.
**Concessional Recalculation Rates**
* For defaults pertaining to the period prior to 14 June 2024, damages and penalties will be recalculated at significantly reduced rates.
* Defaults up to two months: 0.25% per month.
* Defaults from two to less than four months: 0.50% per month.
* Defaults exceeding four months: 1.00% per month.
**Requirements for Participation**
* Employers must ensure the entire interest payable under Section 7Q of the EPF & MP Act or Section 127 of the Code on Social Security is fully remitted before applying.
* Applicants must furnish an undertaking that no further appeals will be pursued regarding the settled dispute.
**Application and Administrative Process**
* Applications must be submitted online through the EPFO Employer Portal using a Digital Signature Certificate (DSC) or e-Sign.
* The EPFO has established dedicated "VISHWAS Cells" across field offices to assist employers and ensure the expeditious disposal of applications.
* The process is designed for online verification, digital processing, and the issuance of settlement orders within a defined timeframe.
**Impact Analysis**
**Stakeholder: Employers / Establishments**
**Impact**
Employers gain a transparent, time-bound opportunity to resolve long-pending disputes at reduced financial costs. This allows for the regularization of compliance and a reduction in legal burdens.
**Action Required**
Eligible employers must fully remit all statutory interest, submit an online application via the EPFO portal with a DSC or e-Sign, and provide a formal undertaking to cease further litigation on the settled matter.
**Stakeholder: Employees**
**Impact**
The scheme safeguards the interests of employees by ensuring the speedy resolution of disputes and promoting the stability of social security contributions.
**Action Required**
No direct action is required from employees; however, they benefit from the employer's regularized compliance.
**Stakeholder: EPFO (Zonal, Regional, and District Offices)**
**Impact**
The organization aims to achieve a more efficient and litigation-free social security administration. The workload associated with long-pending judicial cases is expected to decrease.
**Action Required**
Field offices must establish dedicated VISHWAS Cells, follow operational guidelines for processing applications, and conduct regular monitoring at Zonal and Head Office levels to ensure effective implementation.
Key Entities Referenced
VISHWAS, 2026: A one-time dispute resolution initiative launched to facilitate the amicable settlement of disputes relating to the levy of damages and penalties for defaults in provident fund contributions.
Employees’ Provident Fund Organisation (EPFO): The primary regulatory body under the Ministry of Labour & Employment responsible for implementing the VISHWAS, 2026 scheme and managing dispute settlements.
Employees’ Provident Funds and Miscellaneous Provisions Act, 1952: The principal legislation under which damages and interest are levied (Sections 14B and 7Q), forming the legal basis for the disputes addressed by the scheme.
Code on Social Security, 2020: A key legislative framework referenced for the settlement of disputes and remittance of interest (Sections 128 and 127) as part of the scheme's eligibility criteria.
EPF Scheme, 2026: The overarching regulatory scheme under which the VISHWAS, 2026 initiative was formally notified and brought into force.
Ministry of Labour & Employment
EPFO Launches “VISHWAS, 2026” for Amicable
Settlement of Damages/Penalty/-Related
Disputes
प्रव तथ: 17 JUL 2026 1:31PM by PIB 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 initiative to
facilitate amicable settlement of disputes relating to levy of damages /penalty under Section 14B of the
Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and Section 128 of the Code on
Social Security, 2020.
The Scheme has been notified vide G.S.R. 525(E) dated 29 June 2026 as part of the EPF Scheme, 2026
and has come into force with effect from 29 June 2026. It will remain operational for a period of six
months from the date of notification.
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 provides employers with an opportunity to settle
eligible cases through a transparent, fully digital and time-bound process.
The Scheme covers four broad categories of cases:
cases where orders for penalty/damages are under challenge before judicial forum;
final damages/penalty orders where recovery is pending or only partly made, including Recovery
Certificate (RRC) cases;
cases where notices have been issued but final orders for damages/penalty are yet to be passed; and
cases where notices for penalty/damages are yet to be issued.
Under VISHWAS, 2026, damages /penalty for defaults pertaining to the period prior to 14 June 2024 shall
be recalculated at substantially reduced rates, namely 0.25% per month for defaults up to two months,
0.50% per month for defaults from two to less than four months, and 1.00% per month for defaults
exceeding four months. These concessional rates are intended to encourage employers to resolve pending
disputes expeditiously.
To avail the benefits of the Scheme, employers are required to ensure that the entire interest payable under
Section 7Q of the EPF & MP Act, 1952 or Section 127 of the Code on Social Security, 2020, as
applicable, has been fully remitted before submitting an application. Applicants are also required to
furnish an undertaking that no further appeal shall be pursued in respect of the dispute settled under the
Scheme.
The Scheme contains detailed provisions regarding adjustment of amounts already paid towards damages
or penalty, regulation of statutory pre-deposits made for filing appeals, and settlement of pending cases in
a fair and transparent manner. However, establishments where penalty/damages have already been fullyrecovered, cases involving fraud, misappropriation or deliberate falsification of records, and cases where
the applicable statutory interest has not been fully deposited are excluded from the Scheme.
Applications under VISHWAS, 2026 shall be submitted online through the EPFO Employer Portal using
Digital Signature Certificate (DSC) or e-Sign. The process has been designed to ensure ease of filing,
online verification, digital processing and issuance of settlement orders within a defined timeframe.
To facilitate smooth implementation, EPFO has issued detailed operational guidelines to all its Zonal,
Regional and District Offices. Dedicated VISHWAS Cells are being established across field offices to
assist employers, process applications expeditiously and ensure timely disposal. Regular monitoring at
Zonal and Head Office levels will be undertaken to ensure effective implementation of the Scheme.
EPFO encourages all eligible employers to make full use of this one-time opportunity to resolve pending
damages or penalty-related disputes, regularise compliance and contribute towards a more efficient and
litigation-free social security administration.
***
Rini Choudhury
(रलीज़ आईडी: 2285666) आगंतुक पटल : 1637
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