EPFO introduces a six-month dispute resolution scheme offering reduced penalty rates and faster settlement of eligible employer cases through a fully digital process.
Key Highlights
- EPFO has launched the VISHWAS 2026 one-time dispute resolution scheme.
- The scheme is effective from 29 June 2026 and will remain open for six months.
- It aims to reduce litigation and encourage voluntary compliance among employers.
- Eligible employers can settle pending damages and penalty disputes at significantly reduced rates.
- Applications will be processed through a fully digital online system.
- The scheme covers pending appeals, recovery cases, notice-stage cases and cases where notices are yet to be issued.
- Employers must clear the applicable statutory interest before applying.
- Cases involving fraud, fully recovered penalties or unpaid statutory interest are not eligible.
EPFO Introduces One-Time Settlement Scheme
The Employees’ Provident Fund Organisation (EPFO), under the Ministry of Labour & Employment, has launched VISHWAS 2026, a one-time dispute resolution initiative to help employers settle long-pending disputes related to damages and penalties under the EPF Act and the Code on Social Security.
The scheme has been notified as part of the EPF Scheme, 2026 and became effective from 29 June 2026. Employers will have six months to apply and resolve eligible disputes through a simplified online process.
Reduced Penalty Rates for Eligible Cases
Under the scheme, penalties for defaults that occurred before 14 June 2024 will be recalculated at concessional rates:
- 0.25% per month for defaults up to two months.
- 0.50% per month for defaults between two and four months.
- 1.00% per month for defaults exceeding four months.
The revised rates are intended to encourage faster settlement while reducing the burden of prolonged litigation.
Who Can Apply?
The scheme covers four major categories of cases:
- Disputes currently pending before judicial forums.
- Final penalty or damages orders where recovery is pending or partially completed.
- Cases where notices have been issued but final orders are yet to be passed.
- Cases where notices for damages or penalties have not yet been issued.
However, establishments where penalties have already been fully recovered, cases involving fraud or falsification of records, and employers who have not deposited the required statutory interest are excluded.
Fully Digital Application Process
Applications must be submitted through the EPFO Employer Portal using a Digital Signature Certificate (DSC) or e-Sign. EPFO has also established dedicated VISHWAS Cells across its field offices to assist employers and ensure timely processing of applications.
The organisation said the initiative aims to improve compliance, reduce legal disputes and make India’s social security administration more efficient through transparent and time-bound settlements.
