Home India Ministry of Labour and Employment 'Vishwas 2026' scheme to resolve pending penalty cases throu...
Date: 2026-07-13 Category: Press Release State: Union Government Country: India

'Vishwas 2026' scheme to resolve pending penalty cases through mediation: Commissioner Lokesh Gupta

Issued by Ministry of Labour and Employment · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** The Employees' Provident Fund Organization (EPFO) has launched the 'Vishwas 2026' scheme, effective for six months starting June 29, 2026, to settle pending penalty cases through mediation. The initiative aims to resolve disputes under Section 14B of the EPF Act and Section 128 of the Social Security Code quickly and amicably. Employers must pay the full interest amount and apply online by the end of the six-month period to benefit from penalty waivers and discounted compensation rates. **Key Points / Main Content** **Scheme Scope and Duration** * The scheme is effective for a six-month period beginning June 29, 2026. * It covers penalty cases under Section 14B of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, and Section 128 of the Social Security Code, 2020. * Eligible cases include those in judicial dispute, cases where recovery is pending after a final order, and cases where notices have been issued or are pending. **Financial Provisions and Eligibility** * Penalty waivers are available for cases dating before June 14, 2024. * Discounted compensation rates are fixed at 0.25%, 0.50%, and 1% per month, depending on the length of the delay. * To qualify, the employer must pay the full interest amount before submitting an application. * Exclusions apply to cases involving fraud, embezzlement, deliberate tampering of records, or where full recovery has already been made. **Application and Administration** * Employers must apply online via the EPFO Employer Portal using a digital signature or e-signature. * Settlement requires a formal undertaking from the employer to waive the right to appeal to any judicial forum. * Regional offices will establish a dedicated "Vishwas Cell" and help desk to assist with implementation. * The scheme's progress will be monitored through weekly and fortnightly reviews based on performance indicators. **Impact Analysis** **Employers** **Impact** Employers can resolve long-standing legal disputes and penalty cases at a reduced cost and in an amicable manner, avoiding prolonged litigation. **Action Required** They must pay the total interest due, submit an online application via the EPFO portal with a digital signature, and provide an undertaking not to pursue further judicial appeals. **Employees' Provident Fund Organization (EPFO)** **Impact** The organization will see a reduction in the backlog of pending penalty cases and judicial disputes, facilitating more efficient administrative operations. **Action Required** Regional offices must set up "Vishwas Cells" and help desks, verify online applications, and issue approval certificates to successful applicants.

Key Entities Referenced

Vishwas 2026: A special six-month scheme implemented by the EPFO to resolve pending penalty cases through mediation and offer discounted compensation rates. Employees' Provident Fund Organization (EPFO): The primary regulatory body responsible for implementing the 'Vishwas 2026' scheme and establishing dedicated 'Vishwas Cells' for dispute resolution. Section 14B of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952: The specific legal provision governing penalty cases that the 'Vishwas 2026' scheme aims to settle amicably through mediation. Social Security Code, 2020: A primary policy document and legislative framework referenced for resolving penalty cases via mediation under Section 128. Ministry of Labour & Employment: The central ministry overseeing the EPFO and the notification of the 'Vishwas 2026' settlement initiative.
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Ministry of Labour & Employment 'Vishwas 2026' scheme to resolve pending penalty cases through mediation: Commissioner Lokesh Gupta प्रव तथ: 13 JUL 2026 6:05PM by PIB Mumbai Pune, 13 July 2026 The Employees' Provident Fund Organization (EPFO) has implemented a special scheme, 'Vishwas 2026,' to resolve pending penalty cases under Section 14B quickly and amicably. Regional Provident Fund Commissioner-1 Lokesh Gupta has appealed to employers to take maximum advantage of this scheme and resolve penalty cases in court through mediation. The Employees' Provident Fund Organization issued a circular in this regard on July 9, 2026. The scheme aims to resolve penalty (compensation) cases through mediation under Section 14B of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, and Section 128 of the Social Security Code, 2020. The scheme will be effective for a period of six months, starting June 29th. Cases in judicial dispute, cases where recovery has not been made even after a final order, cases where a notice has been issued but no final order has been passed, and cases where a notice has not yet been issued will be eligible under this scheme. A specific provision for penalty waiver has been made for cases before June 14th, 2024, and compensation has been fixed at the rate of 0.25%, 0.50%, and 1% per month, depending on the delay. To avail the scheme, the full interest amount must be paid before applying, and the employer must undertake that he or she will not appeal the case to any judicial forum after a settlement is reached. Cases involving full recovery, fraud, embezzlement, or deliberate tampering of records, and non-payment of the full interest amount are excluded from the scheme. Employers must apply online on the EPFO Employer Portal and submit the application using a digital signature or e-signature. After verification and approval by the relevant regional office, the approval certificate will be made available on the employer's login. Furthermore, for effective implementation of the scheme, a "Vishwas Cell" and help desk will be established in each regional office, with regular weekly and fortnightly reviews to assess progress based on performance indicators. Commissioner Shri Lokesh Gupta stated that due to the "Vishwas-2026" scheme, pending penalty cases under Section 14B will be resolved quickly and amicably, providing relief to both employers and the Employees' Provident Fund Organization. Features of Vishwas - 2026 Scheme Special discount scheme for six months. Settlement of judicial and pending fine cases through mediation. Application is accepted only after payment of the full amount of interest. Discount rates are applicable according to the delay in fine. Fraud, embezzlement and cases of full recovery are out of the scheme. Online application, approval certificate available after verification.* * * PIB Pune | Harshal Akude/Darshana Rane Follow us on social media: @PIBMumbai /PIBMumbai /pibmumbai pibmumbai[at]gmail[dot]com /PIBMu mbai /pibmumbai (रलीज़ आईडी: 2284211) आगंतुक पटल : 43 इस वज्ञ को इन भाषाओ ंम पढ़: Marathi

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